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Investment Objective and Policies","page_number":21,"box":{"x":69,"y":544,"width":262,"height":11}},{"id":"3d17d17f-867e-4b82-8280-a5929760b936","block_type":"box","text":"The Fund’s investment objective is to provide high total investment return through a fully managed investment","page_number":21,"box":{"x":101,"y":566,"width":784,"height":11}},{"id":"ea612f98-e769-4353-aa07-1a80c0511dbd","block_type":"box","text":"policy utilizing United States and foreign equity securities, debt and money market securities, the combination of","page_number":21,"box":{"x":70,"y":581,"width":802,"height":12}},{"id":"834cd066-ebb5-4724-a236-caec8331be34","block_type":"box","text":"which will be varied from time to time both with respect to types of securities and markets in response to changing","page_number":21,"box":{"x":68,"y":596,"width":820,"height":12}},{"id":"3e55d7c0-6d78-4ee5-8e91-96673a0d0f51","block_type":"box","text":"market and economic trends. This objective is a fundamental policy of the Fund and may not be changed without the","page_number":21,"box":{"x":69,"y":612,"width":830,"height":11}},{"id":"7f7d425b-494f-4c84-aff8-d6f9cdfce210","block_type":"box","text":"approval of a majority of the Fund’s outstanding voting securities as defined in the Investment Company Act. The","page_number":21,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"2f66541b-306d-41af-98b3-510f07dd5584","block_type":"box","text":"Fund operates as a diversified open-end investment company as defined under the Investment Company Act.","page_number":21,"box":{"x":70,"y":642,"width":773,"height":11}},{"id":"c4f04c1d-ad27-4544-8951-15ca6505450d","block_type":"box","text":"The Fund will invest in a portfolio of U.S. and foreign equity, debt and money market securities, and other short","page_number":21,"box":{"x":101,"y":664,"width":798,"height":12}},{"id":"b1f213ea-551b-48d6-8371-81677ea65ee0","block_type":"box","text":"term securities or instruments. The composition of the portfolio among these securities and markets will be varied","page_number":21,"box":{"x":68,"y":680,"width":818,"height":11}},{"id":"e07804b9-386d-469e-b086-e06c18fbd7d3","block_type":"box","text":"from time to time by BlackRock in response to changing market and economic trends. This fully managed investment","page_number":21,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"76470f3c-6931-4fda-aeb7-481631649e35","block_type":"box","text":"approach provides the Fund with the opportunity to benefit from anticipated shifts in the relative performance of","page_number":21,"box":{"x":69,"y":710,"width":801,"height":11}},{"id":"91790371-69ef-40c6-9d48-e9ebdab066af","block_type":"box","text":"different types of securities and different capital markets. For example, at times the Fund may emphasize","page_number":21,"box":{"x":69,"y":725,"width":754,"height":11}},{"id":"e4d20a8d-2fcd-4db2-9a37-30ef10f3092c","block_type":"box","text":"investments in equity securities in anticipation of significant advances in stock markets and at times may emphasize","page_number":21,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"a16f1c8b-224c-4571-ba27-6fc58ea90c4d","block_type":"box","text":"debt securities in anticipation of significant declines in interest rates. Similarly, the Fund may emphasize foreign","page_number":21,"box":{"x":69,"y":755,"width":798,"height":11}},{"id":"98b0b4f0-8873-4367-9098-4c3facf8f81d","block_type":"box","text":"markets in its security selection when such markets are expected to outperform, in U.S. dollar terms, the U.S.","page_number":21,"box":{"x":69,"y":770,"width":786,"height":11}},{"id":"7b3ad960-c0b6-46e2-bdcd-a2dabaa30b31","block_type":"box","text":"markets. The Fund will seek to identify longer-term structural or cyclical changes in the various economies and","page_number":21,"box":{"x":69,"y":785,"width":785,"height":12}},{"id":"0424dd7f-6831-47b6-acb6-218eb8da6d48","block_type":"box","text":"markets of the world that are expected to benefit certain capital markets and certain securities in those markets to a","page_number":21,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"2aa3abb6-1720-4898-9309-d8994e84d8b8","block_type":"box","text":"greater extent than other investment opportunities. The Fund may invest in individual securities, baskets of securities","page_number":21,"box":{"x":68,"y":816,"width":839,"height":11}},{"id":"a7d5261c-edc3-480b-a689-5158e524d4f4","block_type":"box","text":"or particular measurements of value or rate (an “index”), such as an index of the price of treasury securities or an","page_number":21,"box":{"x":69,"y":831,"width":814,"height":11}},{"id":"8631634e-cbde-4f00-99b6-92804cbaf87d","block_type":"box","text":"index representative of short-term interest rates, and may consider a variety of factors and systematic inputs. The","page_number":21,"box":{"x":70,"y":846,"width":812,"height":11}},{"id":"beff67f0-09d3-4590-8e12-8b9507b60700","block_type":"box","text":"Fund may employ a variety of instruments and techniques to enhance income and to hedge against market and","page_number":21,"box":{"x":70,"y":861,"width":791,"height":11}},{"id":"bae4bce4-05f1-4ba9-b6b1-176efb4aabe2","block_type":"box","text":"currency risk.","page_number":21,"box":{"x":69,"y":876,"width":93,"height":11}},{"id":"9f94e9f8-a212-4285-84c2-88d7850a2251","block_type":"box","text":"I-5","page_number":21,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"a4ff454d-ec95-4e36-9114-17c0c0a8af15","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8218c4d5-0214-4840-a07b-be068b2034c5","block_type":"box","text":"In determining the allocation of assets among capital markets, the Manager will consider, among other factors,","page_number":22,"box":{"x":102,"y":45,"width":791,"height":11}},{"id":"f9a7eb0e-7e85-4d98-bb7c-d2e865f66f9c","block_type":"box","text":"the relative valuation, condition and growth potential of the various economies, including current and anticipated","page_number":22,"box":{"x":68,"y":60,"width":802,"height":11}},{"id":"0f392c6d-36ea-4923-a8af-2bae854bb9c0","block_type":"box","text":"changes in the rates of economic growth, rates of inflation, corporate profits, capital reinvestment, resources, self","page_number":22,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"5b36572f-8622-4187-9eb6-74a9657eb59e","block_type":"box","text":"sufficiency, balance of payments, governmental deficits or surpluses and other pertinent financial, social and political","page_number":22,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"3c511a94-586a-4914-a3d4-777d3729218a","block_type":"box","text":"factors which may affect such markets. In allocating among equity, debt and money market securities within each","page_number":22,"box":{"x":68,"y":105,"width":809,"height":11}},{"id":"6664b0b3-2581-4457-99ec-54bbad793998","block_type":"box","text":"market, the Manager also will consider the relative opportunity for capital appreciation of equity and debt securities,","page_number":22,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"8da1ce9c-9127-4cb1-8d52-76c010e79246","block_type":"box","text":"dividend yields and the level of interest rates paid on debt securities of various maturities.","page_number":22,"box":{"x":69,"y":135,"width":643,"height":11}},{"id":"33846f8c-49a3-4d8f-996d-3535020c2a2d","block_type":"box","text":"In selecting securities denominated in foreign currencies, the Manager will consider, among other factors, the","page_number":22,"box":{"x":102,"y":158,"width":781,"height":11}},{"id":"7f395f62-1aea-49be-8b9e-b577a7f0ec9f","block_type":"box","text":"effect of movement in currency exchange rates on the U.S. dollar value of such securities. An increase in the value of","page_number":22,"box":{"x":69,"y":173,"width":839,"height":11}},{"id":"dba41b68-e38f-4146-b96a-7daa2f921abd","block_type":"box","text":"a currency will increase the total return to the Fund of securities denominated in such currency. Conversely, a decline","page_number":22,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"d6f9221e-4826-4cdd-927f-76e7f3990ad1","block_type":"box","text":"in the value of the currency will reduce the total return. The Manager may seek to hedge all or a portion of the Fund’s","page_number":22,"box":{"x":70,"y":203,"width":836,"height":12}},{"id":"232d433c-5cd4-4106-88c6-ca2b7925a704","block_type":"box","text":"foreign securities through the use of forward foreign currency contracts, currency options, futures contracts and","page_number":22,"box":{"x":68,"y":218,"width":798,"height":12}},{"id":"becea354-5c3a-4ccd-a714-d058f3edcafc","block_type":"box","text":"options thereon.","page_number":22,"box":{"x":69,"y":234,"width":115,"height":11}},{"id":"fee9d399-0d21-4924-9a6c-04f69670aaa3","block_type":"box","text":"Under normal circumstances, the Fund will allocate a substantial amount (approximately 40% or more — unless","page_number":22,"box":{"x":102,"y":256,"width":798,"height":11}},{"id":"0142639e-bf07-47e0-b4f2-0d68ae519f28","block_type":"box","text":"market conditions are not deemed favorable by BlackRock, in which case the Fund would invest at least 30%) of its","page_number":22,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"7f5e5c45-2a94-4fe3-b1ae-85e3003e4261","block_type":"box","text":"total assets in securities of (i) foreign government issuers, (ii) issuers organized or located outside the United States,","page_number":22,"box":{"x":68,"y":286,"width":839,"height":12}},{"id":"27a236ab-6155-4387-8294-cf28822b5d62","block_type":"box","text":"(iii) issuers which primarily trade in a market located outside the United States, or (iv) issuers doing a substantial","page_number":22,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"6704e81a-da8a-4d08-989d-adc3d05cce22","block_type":"box","text":"amount of business outside the United States, which the Fund considers to be companies that derive at least 50% of","page_number":22,"box":{"x":69,"y":317,"width":838,"height":11}},{"id":"09669c75-f6cf-429f-885f-6c94adfaa47c","block_type":"box","text":"their revenue or profits from business outside the United States or have at least 50% of their sales or assets outside","page_number":22,"box":{"x":68,"y":332,"width":838,"height":11}},{"id":"8cde2483-da78-4f25-a60c-94afd2d59b16","block_type":"box","text":"the United States. The Fund will allocate its assets among various regions and countries, including the United States","page_number":22,"box":{"x":68,"y":347,"width":834,"height":11}},{"id":"2ee22942-6b59-4d04-854a-3115309f9d66","block_type":"box","text":"(but in no less than three different countries). The Manager anticipates that a portion of the Fund’s assets normally","page_number":22,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"2499bd4b-82c9-46ee-8c77-177cf7c27976","block_type":"box","text":"will be invested in the United States securities markets and the other major capital markets. Under normal","page_number":22,"box":{"x":68,"y":377,"width":760,"height":11}},{"id":"4da435e3-e38d-4bf2-9bd5-75247f950c1a","block_type":"box","text":"conditions, the Fund’s investments will be denominated in at least three currencies or multinational currency units.","page_number":22,"box":{"x":69,"y":393,"width":820,"height":11}},{"id":"0239339b-5518-4d4f-b7e0-6ca981205fda","block_type":"box","text":"For temporary defensive purposes the Fund may deviate very substantially from the geographic and currency","page_number":22,"box":{"x":70,"y":407,"width":772,"height":12}},{"id":"2baa7f13-78f0-414f-80f1-edf358eacf49","block_type":"box","text":"allocations described above. There are no prescribed limits on the allocation of the Fund’s assets among equity, debt","page_number":22,"box":{"x":69,"y":423,"width":838,"height":11}},{"id":"a2b56d36-33ba-4c60-8b4d-1b5f0f7e31c7","block_type":"box","text":"and money market securities. Therefore, at any given time, the Fund’s assets may be primarily invested in equity,","page_number":22,"box":{"x":69,"y":438,"width":807,"height":11}},{"id":"a8bb7061-c470-45f7-ad8c-41922b3dc1b8","block_type":"box","text":"debt or money market securities or in any combination thereof. However, the Manager anticipates that the Fund’s","page_number":22,"box":{"x":69,"y":453,"width":808,"height":11}},{"id":"4997df8a-b7e8-4528-92e6-f0e21e01329b","block_type":"box","text":"portfolio generally will include both equity and debt securities.","page_number":22,"box":{"x":70,"y":468,"width":439,"height":11}},{"id":"ef21b1ff-8680-43c4-9e7c-ac2aa9f757fd","block_type":"box","text":"Within the portion of the Fund’s portfolio allocated to equity securities, the Manager will generally seek to","page_number":22,"box":{"x":101,"y":491,"width":754,"height":11}},{"id":"0e585fe9-1c59-4b38-93c7-5fdf9647bc3a","block_type":"box","text":"identify the securities of companies and industry sectors that are expected to provide high total return relative to","page_number":22,"box":{"x":70,"y":506,"width":804,"height":11}},{"id":"bda8901b-afe7-41fb-ab05-cde492fc8bcc","block_type":"box","text":"alternative equity investments. The Fund generally will seek to invest in securities the Manager believes to be","page_number":22,"box":{"x":69,"y":521,"width":780,"height":11}},{"id":"0bd12d4e-326f-434b-a6eb-1269982cdd28","block_type":"box","text":"undervalued. The Fund may also invest in the securities of small and emerging growth companies when such","page_number":22,"box":{"x":69,"y":536,"width":776,"height":11}},{"id":"77c91140-5746-4e23-b1ef-c491a48705b6","block_type":"box","text":"companies are expected to provide a higher total return than other equity investments. Such companies are","page_number":22,"box":{"x":69,"y":551,"width":769,"height":11}},{"id":"ae11ba20-4198-4faf-97d2-7e529d7ed8e8","block_type":"box","text":"characterized by rapid historical growth rates, above-average returns on equity or special investment value in terms of","page_number":22,"box":{"x":69,"y":566,"width":839,"height":11}},{"id":"91e838fa-3f46-4d4d-bd78-6cf5202a6af1","block_type":"box","text":"their products or services, research capabilities or other unique attributes. The Manager will seek to identify small","page_number":22,"box":{"x":68,"y":581,"width":814,"height":12}},{"id":"2b75d29c-8a06-4e60-825e-c62cc2c010cf","block_type":"box","text":"and emerging growth companies that possess superior management, marketing ability, research and product","page_number":22,"box":{"x":69,"y":597,"width":777,"height":11}},{"id":"33553499-6008-4966-8205-15dde8cdbd86","block_type":"box","text":"development skills and sound balance sheets.","page_number":22,"box":{"x":69,"y":612,"width":330,"height":11}},{"id":"3d6d222f-7ffb-4b51-abfe-de741334c965","block_type":"box","text":"There may be periods when market and economic conditions exist that favor certain types of tangible assets as","page_number":22,"box":{"x":101,"y":634,"width":797,"height":12}},{"id":"3f095bdb-1ff1-4707-8519-70968c6c936a","block_type":"box","text":"compared to other types of investments. For example, the value of precious metals can be expected to benefit from","page_number":22,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"d1f86504-aba1-4247-bb12-b92362de5dbc","block_type":"box","text":"such factors as rising inflationary pressures or other economic, political or financial uncertainty or instability. Real","page_number":22,"box":{"x":69,"y":664,"width":811,"height":12}},{"id":"05fd34a2-bdcf-4cb9-870a-cfe6d5eb4e44","block_type":"box","text":"estate values, which are influenced by a variety of economic, financial and local factors, tend to be cyclical in nature.","page_number":22,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"3b69d17c-f354-44a0-82af-a7cd48ca0d6b","block_type":"box","text":"During periods when the Manager believes that conditions favor a particular real asset as compared to other","page_number":22,"box":{"x":70,"y":695,"width":774,"height":11}},{"id":"c567722c-a613-41c1-a381-22d53a4ce582","block_type":"box","text":"investment opportunities, the Fund may emphasize investments related to that asset, such as investments in","page_number":22,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"8ace6818-b596-4297-8a63-24c342e46d81","block_type":"box","text":"precious metal-related securities or real estate-related securities as described below. The Fund may invest up to 25%","page_number":22,"box":{"x":70,"y":725,"width":835,"height":11}},{"id":"6a3698c4-4cf3-401f-a886-998bd5b6339d","block_type":"box","text":"of its total assets in any particular industry sector.","page_number":22,"box":{"x":69,"y":740,"width":360,"height":11}},{"id":"76760383-cd5f-4918-949b-ca3683d48459","block_type":"box","text":"The Fund may also invest in REITs. REITs are companies that own interests in real estate or in real estate related","page_number":22,"box":{"x":101,"y":763,"width":807,"height":11}},{"id":"ef8ac4fc-9bfc-44a5-bfbf-164215a8ebf3","block_type":"box","text":"loans or other interests, and have revenue primarily consisting of interest income, rent derived from owned, income","page_number":22,"box":{"x":70,"y":778,"width":822,"height":11}},{"id":"409e5345-c7cc-4985-9e59-fa01e835cef0","block_type":"box","text":"producing real estate properties and capital gains from the sale of such properties. REITs can generally be classified","page_number":22,"box":{"x":70,"y":793,"width":832,"height":11}},{"id":"708419ac-7070-4751-80b3-cd520d407cca","block_type":"box","text":"as equity REITs, mortgage REITs and hybrid REITs. Equity REITs invest the majority of their assets directly in real","page_number":22,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"d1d6f75d-74ed-47ff-88f1-7d602d27712d","block_type":"box","text":"property and derive their income primarily from rents. Equity REITs can also realize capital gains by selling properties","page_number":22,"box":{"x":70,"y":823,"width":831,"height":12}},{"id":"28ea499f-b7c0-4c64-8c48-b22a7b1b1b40","block_type":"box","text":"that have appreciated in value. Mortgage REITs invest the majority of their assets in real estate mortgages and derive","page_number":22,"box":{"x":68,"y":838,"width":841,"height":12}},{"id":"04e55388-39fd-4583-ac38-c4a729310061","block_type":"box","text":"their income primarily from interest payments. Hybrid REITs combine the characteristics of both equity REITs and","page_number":22,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"69835ebf-b218-4055-8230-154a405e3099","block_type":"box","text":"mortgage REITs. REITs are not taxed on income distributed to shareholders provided they comply with the","page_number":22,"box":{"x":69,"y":869,"width":751,"height":11}},{"id":"643c2db4-5bdb-484f-af12-d5b5a52aef8b","block_type":"box","text":"requirements of the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":22,"box":{"x":69,"y":884,"width":565,"height":11}},{"id":"e263cc39-917e-44a4-b248-573cb62b95b0","block_type":"box","text":"The Fund may also purchase convertible securities.","page_number":22,"box":{"x":101,"y":907,"width":366,"height":11}},{"id":"77624a78-5c47-47ae-83ef-71b71df58ff9","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"eb7b80e2-116d-4b97-bfb6-7f9c13501026","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e47e78be-7fa9-4bee-b2cd-3e2d6af60155","block_type":"box","text":"The Fund’s primary vehicle for gaining exposure to the commodities markets is expected to be through","page_number":23,"box":{"x":101,"y":45,"width":731,"height":11}},{"id":"e7e2206e-0afb-4212-8f5c-fdf72bcf9e8e","block_type":"box","text":"investments in the BlackRock Cayman Global Allocation Fund I, Ltd. (the “Cayman Subsidiary”), a wholly owned","page_number":23,"box":{"x":70,"y":60,"width":790,"height":11}},{"id":"e8d4e2ea-51e4-494f-8d93-a80331dafd56","block_type":"box","text":"subsidiary of the Fund formed in the Cayman Islands, which invests primarily in commodity-related instruments. The","page_number":23,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"7582b590-b611-4a2b-9eeb-2d961f8c5093","block_type":"box","text":"Cayman Subsidiary may also hold cash and invest in other instruments, including fixed income securities, either as","page_number":23,"box":{"x":69,"y":90,"width":821,"height":11}},{"id":"ba5b9bc1-81f8-4a81-9e7a-141c35111c33","block_type":"box","text":"investments or to serve as margin or collateral for the Cayman Subsidiary’s derivative positions.","page_number":23,"box":{"x":70,"y":105,"width":686,"height":11}},{"id":"91ddbbc4-87c4-4e5a-80dd-9aa04cf1c498","block_type":"box","text":"The Fund intends to gain exposure to certain of its portfolio companies by investing through a wholly owned","page_number":23,"box":{"x":101,"y":128,"width":767,"height":11}},{"id":"73259142-de6a-4106-9308-e64acabcd8c6","block_type":"box","text":"Delaware subsidiary (the “Delaware Subsidiary” and together with the Cayman Subsidiary, “Subsidiaries”). In","page_number":23,"box":{"x":70,"y":143,"width":778,"height":11}},{"id":"f01d12a2-af49-4d00-90d9-560ac0613136","block_type":"box","text":"general, in order to comply with diversification requirements under Subchapter M of the Code, the Fund may not","page_number":23,"box":{"x":68,"y":158,"width":798,"height":11}},{"id":"d3a8b813-2815-4011-90f9-43e717a5f07c","block_type":"box","text":"invest more than 25% of the value of its assets in the securities of one or more Subsidiaries that are engaged in the","page_number":23,"box":{"x":70,"y":173,"width":831,"height":11}},{"id":"89c9c84a-1de2-4e3d-a0a2-3a8161c684f3","block_type":"box","text":"same or similar or related trades or businesses.","page_number":23,"box":{"x":69,"y":188,"width":343,"height":9}},{"id":"9f321f58-217a-4f1a-b677-15384ec3dc47","block_type":"box","text":"The Fund can invest in all types of debt securities, including securities issued or guaranteed by the U.S.","page_number":23,"box":{"x":101,"y":211,"width":739,"height":11}},{"id":"8b485824-ad9c-44e3-bff3-24c1b7474fdd","block_type":"box","text":"Government and its agencies or instrumentalities, by foreign governments (including foreign states, provinces and","page_number":23,"box":{"x":69,"y":226,"width":812,"height":11}},{"id":"10a2557f-43db-43a3-94e1-15d80b6fd6ee","block_type":"box","text":"municipalities) and agencies or instrumentalities thereof and debt obligations issued by U.S. and foreign entities.","page_number":23,"box":{"x":69,"y":241,"width":807,"height":11}},{"id":"74d9eb31-fc2d-4cdb-a637-08720c04bf02","block_type":"box","text":"Such securities may include mortgage-backed securities issued or guaranteed by governmental entities or by","page_number":23,"box":{"x":69,"y":256,"width":776,"height":12}},{"id":"27e3f505-e8bc-48ce-b40f-bf49f19c5b43","block_type":"box","text":"domestic or foreign private issuers. The Fund may invest in debt securities issued or guaranteed by international","page_number":23,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"6e82252e-68d9-48a2-b7e5-86426e731333","block_type":"box","text":"organizations designed or supported by multiple governmental entities (which are not obligations of the U.S.","page_number":23,"box":{"x":69,"y":286,"width":770,"height":12}},{"id":"8acfe3d0-30f4-477f-a281-f4799d05e944","block_type":"box","text":"Government or foreign governments) to promote economic reconstruction or development (“supranational entities”),","page_number":23,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"0556f723-a37d-4f3b-b23c-ea8e9ad99885","block_type":"box","text":"such as the International Bank for Reconstruction and Development (the “World Bank”). The Fund may also invest in","page_number":23,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"ae1fb9db-98e0-4641-8c6c-1a34b76bdaf9","block_type":"box","text":"debt securities convertible into equity securities, inflation-indexed bonds, structured notes, credit-linked notes, loan","page_number":23,"box":{"x":69,"y":332,"width":824,"height":11}},{"id":"c89ed952-590e-42f1-85a6-e3663f00b353","block_type":"box","text":"assignments and loan participations.","page_number":23,"box":{"x":69,"y":347,"width":263,"height":11}},{"id":"f7dcb332-8af5-462a-8e4b-af55790da446","block_type":"box","text":"U.S. Government securities include: (i) U.S. Treasury obligations (bills, notes and bonds), which differ in their","page_number":23,"box":{"x":102,"y":370,"width":778,"height":11}},{"id":"38fcd48e-53cb-44ba-b9cf-334701f4311f","block_type":"box","text":"interest rates, maturities and times of issuance, all of which are backed by the full faith and credit of the United","page_number":23,"box":{"x":70,"y":385,"width":797,"height":11}},{"id":"31653742-de49-400a-ac42-385b89a13fec","block_type":"box","text":"States; and (ii) obligations issued or guaranteed by U.S. Government agencies or instrumentalities, including","page_number":23,"box":{"x":69,"y":400,"width":775,"height":11}},{"id":"1e0efb24-ffda-40c2-8090-8cab01e5ae41","block_type":"box","text":"government guaranteed mortgage-related securities, some of which are backed by the full faith and credit of the U.S.","page_number":23,"box":{"x":68,"y":415,"width":834,"height":11}},{"id":"274d4e0f-fabc-4279-93b5-70b5abfa8aa3","block_type":"box","text":"Treasury (e.g., direct pass-through certificates of the Government National Mortgage Association), some of which are","page_number":23,"box":{"x":68,"y":430,"width":836,"height":11}},{"id":"057a9910-967d-4ab7-a62b-3a5097511a5f","block_type":"box","text":"supported by the right of the issuer to borrow from the U.S. Government (e.g., obligations of Federal Home Loan","page_number":23,"box":{"x":69,"y":445,"width":800,"height":12}},{"id":"89551934-985b-4821-9bab-0f191a26e579","block_type":"box","text":"Banks) and some of which are backed only by the credit of the issuer itself (e.g., obligations of the Student Loan","page_number":23,"box":{"x":70,"y":460,"width":801,"height":12}},{"id":"6d837446-311b-46bd-8115-6e375d2e11c7","block_type":"box","text":"Marketing Association).","page_number":23,"box":{"x":70,"y":476,"width":164,"height":11}},{"id":"51514f1b-15ec-44a0-8227-bd6e44f10289","block_type":"box","text":"The obligations of foreign governmental entities have various kinds of government support and include","page_number":23,"box":{"x":101,"y":498,"width":731,"height":11}},{"id":"bab3d75f-82f7-4bd1-865e-39bcb0cc5489","block_type":"box","text":"obligations issued or guaranteed by foreign governmental entities with taxing power. These obligations may or may","page_number":23,"box":{"x":69,"y":513,"width":816,"height":12}},{"id":"2194d909-122d-412e-8d43-81e634aedc06","block_type":"box","text":"not be supported by the full faith and credit of a foreign government.","page_number":23,"box":{"x":69,"y":528,"width":488,"height":12}},{"id":"d401efa2-8ddc-4aa8-b5fa-ba6ef88170d5","block_type":"box","text":"The Fund may invest up to 35% of its assets in debt securities that are rated below investment grade (below BBB","page_number":23,"box":{"x":101,"y":551,"width":808,"height":11}},{"id":"54fc70f5-fc9b-4f7c-9096-b7a79d63615d","block_type":"box","text":"by S&P Global Ratings (“S&P”) or below Baa by Moody’s Investors Service, Inc. (“Moody’s”) or that are considered by","page_number":23,"box":{"x":69,"y":566,"width":839,"height":11}},{"id":"391252ec-44a9-4ce8-afe9-fd68b49e0c4b","block_type":"box","text":"the Manager to be of comparable credit quality. Debt securities ranked in the fourth highest rating category, while","page_number":23,"box":{"x":68,"y":581,"width":810,"height":12}},{"id":"b773a579-a98e-4398-9163-fd7cc4eae99d","block_type":"box","text":"considered “investment grade,” have more speculative characteristics and are more likely to be downgraded than","page_number":23,"box":{"x":69,"y":597,"width":809,"height":11}},{"id":"aac0f37d-132d-46d2-b533-a03bc1672e9e","block_type":"box","text":"securities rated in the three highest rating categories. The Manager considers the ratings assigned by S&P and","page_number":23,"box":{"x":69,"y":612,"width":791,"height":11}},{"id":"9a76ffb2-1aa7-4872-938d-71dd57ab757e","block_type":"box","text":"Moody’s as one of several factors in its independent credit analysis of issuers.","page_number":23,"box":{"x":70,"y":627,"width":561,"height":11}},{"id":"be23f7ca-ed59-4678-b7df-f6d0dcf5b217","block_type":"box","text":"The average maturity of the Fund’s portfolio of debt securities will vary based on the Manager’s assessment of","page_number":23,"box":{"x":101,"y":649,"width":794,"height":12}},{"id":"3fe8d7d5-bbd6-495e-b76a-94bce2b96702","block_type":"box","text":"pertinent economic market conditions. As with all debt securities, changes in market yields will affect the value of","page_number":23,"box":{"x":70,"y":664,"width":813,"height":12}},{"id":"969feefc-e27e-49bd-828c-b2f63127fd29","block_type":"box","text":"such securities. Prices generally increase when interest rates decline and decrease when interest rates rise. Prices","page_number":23,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"804e206f-42ac-4a40-acd8-cbb651c24f53","block_type":"box","text":"of longer term securities generally fluctuate more in response to interest rate changes than do shorter term","page_number":23,"box":{"x":69,"y":695,"width":768,"height":11}},{"id":"3fb6f9d9-0058-46c6-bd7c-428724b164c0","block_type":"box","text":"securities.","page_number":23,"box":{"x":69,"y":710,"width":72,"height":9}},{"id":"f9e21b97-1b2f-4006-8d4d-d87e0182b20b","block_type":"box","text":"The Fund may invest in money market securities such as short-term securities issued or guaranteed by the U.S.","page_number":23,"box":{"x":101,"y":733,"width":797,"height":11}},{"id":"cfeb6c86-d30a-4039-bc9d-73993797d8c1","block_type":"box","text":"Government and its agencies and instrumentalities; commercial paper, including variable amount master demand","page_number":23,"box":{"x":69,"y":748,"width":808,"height":11}},{"id":"30138e69-0678-4f4b-84e5-4a8e957768bb","block_type":"box","text":"notes, rated at least “A” by S&P or “Prime” by Moody’s; and repurchase agreements, purchase and sale contracts,","page_number":23,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"e2e2c600-ada6-43e6-b60a-d3032c721506","block_type":"box","text":"and money market instruments issued by commercial banks, domestic savings banks, and savings and loan","page_number":23,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"428ae863-f77a-46a2-a5be-e2bace711be6","block_type":"box","text":"associations with total assets of at least $1 billion. The obligations of commercial banks may be issued by U.S.","page_number":23,"box":{"x":69,"y":792,"width":797,"height":12}},{"id":"fc2f262c-48c4-4179-926a-797303698ebf","block_type":"box","text":"banks, foreign branches of U.S. or foreign banks (“Eurodollar” obligations) or U.S. branches of foreign banks","page_number":23,"box":{"x":69,"y":808,"width":773,"height":11}},{"id":"d1542cc7-cbc8-43a6-a4df-aa16ca838546","block_type":"box","text":"(“Yankeedollar” obligations).","page_number":23,"box":{"x":69,"y":823,"width":200,"height":12}},{"id":"c854cf9f-efb1-4204-bcaa-e2a7a14442de","block_type":"box","text":"In implementing the Fund’s investment strategy, from time to time, the Manager may consider and employ","page_number":23,"box":{"x":102,"y":846,"width":756,"height":11}},{"id":"eadbedf0-ac6a-46b1-9f19-9cf00432f6a0","block_type":"box","text":"techniques and strategies designed to minimize and defer the U.S. federal income taxes which may be incurred by","page_number":23,"box":{"x":68,"y":861,"width":817,"height":11}},{"id":"b012d08e-ac72-4d4c-984d-e9039eec9169","block_type":"box","text":"shareholders in connection with their investment in the Fund.","page_number":23,"box":{"x":69,"y":876,"width":434,"height":9}},{"id":"3967fba5-8f1c-4cea-b4c5-150000802f17","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"eed3fb06-df79-4492-8fb4-72f10021a792","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"560235f3-0c02-44fc-9899-313e81b980b7","block_type":"box","text":"Regulation Regarding Derivatives","page_number":24,"box":{"x":69,"y":45,"width":243,"height":11}},{"id":"9a56e45f-2959-4857-9a1b-fea4faa24cba","block_type":"box","text":"The Commodity Futures Trading Commission (“CFTC”) subjects advisers to registered investment companies to","page_number":24,"box":{"x":101,"y":67,"width":792,"height":12}},{"id":"b2120904-5a79-4e3c-abaa-e54cd1a8cff6","block_type":"box","text":"regulation by the CFTC if a fund that is advised by the investment adviser either (i) invests, directly or indirectly, more","page_number":24,"box":{"x":69,"y":82,"width":833,"height":12}},{"id":"c2181955-f590-4115-ad41-5c7f278fd458","block_type":"box","text":"than a prescribed level of its liquidation value in CFTC-regulated futures, options and swaps (“CFTC Derivatives”), or","page_number":24,"box":{"x":68,"y":98,"width":826,"height":11}},{"id":"9a08e742-d1ed-4386-94fa-2d9e7bbcb39d","block_type":"box","text":"(ii) markets itself as providing investment exposure to such instruments. The CFTC also subjects advisers to","page_number":24,"box":{"x":69,"y":113,"width":772,"height":11}},{"id":"0c31598b-2b13-49a4-8af4-3039e1c2d949","block_type":"box","text":"registered investment companies to regulation by the CFTC if the registered investment company invests in one or","page_number":24,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"bda3fbf5-7981-4154-b2a6-49ddb4031649","block_type":"box","text":"more commodity pools. To the extent the Fund uses CFTC Derivatives, it intends to do so below such prescribed","page_number":24,"box":{"x":69,"y":143,"width":798,"height":11}},{"id":"6a085796-0ae8-4a3b-b122-3217fe952155","block_type":"box","text":"levels and will not market itself as a “commodity pool” or a vehicle for trading such instruments.","page_number":24,"box":{"x":70,"y":158,"width":685,"height":11}},{"id":"13b1c9ef-070b-459c-b934-5bde3badf7ae","block_type":"box","text":"The Fund may have investments in “underlying funds” (and such underlying funds themselves may invest in","page_number":24,"box":{"x":101,"y":181,"width":764,"height":11}},{"id":"80a76414-ac8e-4e2e-aef8-6e64eb448bec","block_type":"box","text":"underlying funds) not advised by BlackRock (which for purposes of the no-action letter referenced below may include","page_number":24,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"35b0bbc0-687f-4baf-ad22-ac1a0ebc922e","block_type":"box","text":"certain securitized vehicles, mortgage real estate investment trusts and/or investment companies that may invest in","page_number":24,"box":{"x":69,"y":211,"width":834,"height":11}},{"id":"a29f8f12-38f8-4a3d-b847-094af711996e","block_type":"box","text":"CFTC Derivatives), and therefore may be viewed by the CFTC as a commodity pool. BlackRock has no transparency","page_number":24,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"5ed519e7-fa33-40e5-9d0f-2aa019c981b6","block_type":"box","text":"into the holdings of these underlying funds because they are not advised by BlackRock. To address this issue of lack","page_number":24,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"17444a31-9b93-4a10-8780-be711cbe23fd","block_type":"box","text":"of transparency, the CFTC staff issued a no-action letter on November 29, 2012 permitting the adviser of a fund that","page_number":24,"box":{"x":69,"y":256,"width":832,"height":12}},{"id":"bc0a27e0-b491-4a13-ae5f-7c015a75e67d","block_type":"box","text":"invests in such underlying funds and that would otherwise have filed a claim of exclusion pursuant to Rule 4.5 to","page_number":24,"box":{"x":70,"y":271,"width":803,"height":12}},{"id":"c2e743d1-5ec1-42d9-9cb5-3f5ef02e7909","block_type":"box","text":"delay registration as a “commodity pool operator” until six months from the date on which the CFTC issues additional","page_number":24,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"d8c3d86c-1eed-446f-9247-c4b4b4fe7ae4","block_type":"box","text":"guidance on the treatment of CFTC Derivatives held by underlying funds. BlackRock, the adviser of the Fund, has filed","page_number":24,"box":{"x":68,"y":302,"width":837,"height":11}},{"id":"deff0062-d6be-4030-87ee-1d8f6332c5cc","block_type":"box","text":"a claim with the CFTC for the Fund to rely on this no-action relief. Accordingly, BlackRock is not subject to registration","page_number":24,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"03fc396e-e9c2-469b-a951-30a7a5daf289","block_type":"box","text":"or regulation as a “commodity pool operator” under the Commodity Exchange Act in respect of the Fund.","page_number":24,"box":{"x":69,"y":332,"width":743,"height":11}},{"id":"079b2cc8-3e80-4457-822f-d0e3f790fcae","block_type":"box","text":"Investments in the Subsidiaries","page_number":24,"box":{"x":69,"y":362,"width":229,"height":9}},{"id":"9a2e86b1-6e2f-4e56-ad54-838195f5219f","block_type":"box","text":"Cayman Subsidiary.","page_number":24,"box":{"x":101,"y":385,"width":141,"height":11}},{"id":"386510f9-e558-4d07-8e7e-1a4b5e8502bb","block_type":"box","text":"Investments in the Cayman Subsidiary are expected to provide the Fund with exposure to","page_number":24,"box":{"x":249,"y":385,"width":635,"height":11}},{"id":"10307d3b-4bdb-4c42-8638-24405b506b4e","block_type":"box","text":"the commodity markets within the limitations of Subchapter M of the Code and Internal Revenue Service (“IRS”)","page_number":24,"box":{"x":68,"y":400,"width":800,"height":11}},{"id":"f9b6f695-91d8-4961-bca5-520eb09d01dc","block_type":"box","text":"revenue rulings, as discussed below. In general, in order to comply with diversification requirements under","page_number":24,"box":{"x":69,"y":415,"width":758,"height":11}},{"id":"5e1223c2-b64d-4456-9aba-7522956eb79a","block_type":"box","text":"Subchapter M of the Code, the Fund may not invest more than 25% of the value of its assets in the securities of one","page_number":24,"box":{"x":69,"y":430,"width":833,"height":11}},{"id":"004bd74d-04d8-4ce5-b20f-c01f9c408aa4","block_type":"box","text":"or more Subsidiaries that are engaged in the same or similar or related trades or businesses. The Cayman","page_number":24,"box":{"x":69,"y":445,"width":760,"height":12}},{"id":"04b57239-fb6d-4009-bc1d-2f809c8bda69","block_type":"box","text":"Subsidiary is advised by the Manager. The Cayman Subsidiary (unlike the Fund) may invest without limitation in","page_number":24,"box":{"x":69,"y":460,"width":792,"height":12}},{"id":"77835c05-05eb-4ebe-9934-43d9d42bfb30","block_type":"box","text":"commodity-related instruments. However, the Cayman Subsidiary is otherwise subject to the same fundamental, non","page_number":24,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"e34e9ba0-800e-4f6f-b81e-c07342c16fdb","block_type":"box","text":"fundamental and certain other investment restrictions as the Fund, including the timing and method of the valuation","page_number":24,"box":{"x":68,"y":491,"width":828,"height":11}},{"id":"c22a3461-c242-454f-a4fa-2eba5cac1d3d","block_type":"box","text":"of the Cayman Subsidiary’s portfolio investments and shares of the Cayman Subsidiary. The Cayman Subsidiary is","page_number":24,"box":{"x":69,"y":506,"width":818,"height":11}},{"id":"2357c2ca-1563-496b-bb3a-d46de0dc82aa","block_type":"box","text":"managed pursuant to compliance policies and procedures that are the same, in all material respects, as the policies","page_number":24,"box":{"x":69,"y":521,"width":833,"height":11}},{"id":"f21b3200-1665-478c-aaf5-7331b041c185","block_type":"box","text":"and procedures adopted by the Fund. The Cayman Subsidiary is a company organized under the laws of the Cayman","page_number":24,"box":{"x":69,"y":536,"width":828,"height":11}},{"id":"d65fe9f1-4180-42d8-8ad0-1e8be3500996","block_type":"box","text":"Islands, and is overseen by its own board of directors, which is comprised of John M. Perlowski, a Director, President","page_number":24,"box":{"x":70,"y":551,"width":834,"height":11}},{"id":"a13fd4a5-f187-49e4-a287-ee61965f07aa","block_type":"box","text":"and Chief Executive Officer of the Fund, and Trent Walker, Chief Financial Officer of the Fund. The Fund is the sole","page_number":24,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"a3e529ed-aab3-4c94-abec-b82284757f04","block_type":"box","text":"shareholder of the Cayman Subsidiary, and shares of the Cayman Subsidiary will not be sold or offered to other","page_number":24,"box":{"x":69,"y":581,"width":797,"height":11}},{"id":"f875a01f-44e5-4785-b222-b65c5158cb39","block_type":"box","text":"investors.","page_number":24,"box":{"x":70,"y":597,"width":67,"height":8}},{"id":"ffd71fb3-7cef-4adf-a05b-98c06e1db4e5","block_type":"box","text":"The Cayman Subsidiary invests primarily in commodity-related instruments. Although the Fund may enter into","page_number":24,"box":{"x":101,"y":619,"width":776,"height":11}},{"id":"43b56744-88c5-455a-97e7-bfdc2f295712","block_type":"box","text":"these commodity-related instruments directly, the Fund will likely gain exposure to these commodity-related","page_number":24,"box":{"x":68,"y":634,"width":763,"height":12}},{"id":"944baf28-a2af-4ec8-95d8-3a1390979d3e","block_type":"box","text":"instruments indirectly by investing in the Cayman Subsidiary. To the extent that BlackRock believes that these","page_number":24,"box":{"x":70,"y":649,"width":781,"height":12}},{"id":"9ce4fa8e-8bb4-42e9-984e-a28b27bb0018","block_type":"box","text":"commodity-related instruments provide suitable exposure to the commodities market, the Fund’s investment in the","page_number":24,"box":{"x":69,"y":665,"width":819,"height":11}},{"id":"5c5b72b4-3fe3-4cc7-b693-0dc8d89a4e21","block_type":"box","text":"Cayman Subsidiary will likely increase. The Cayman Subsidiary may also hold cash and invest in other instruments,","page_number":24,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"dbeef4e7-8d71-43cd-98bc-39c0edd09fed","block_type":"box","text":"including fixed income securities, either as investments or to serve as margin or collateral for the Cayman","page_number":24,"box":{"x":70,"y":695,"width":755,"height":11}},{"id":"0591e447-8bb6-45e0-bfc2-bc5ee70c6b1c","block_type":"box","text":"Subsidiary’s derivative positions.","page_number":24,"box":{"x":69,"y":710,"width":234,"height":11}},{"id":"e675788f-15e8-4595-85de-9a9e0a1b6c66","block_type":"box","text":"The Manager manages the assets of the Cayman Subsidiary, but receives no additional compensation for doing","page_number":24,"box":{"x":101,"y":732,"width":797,"height":12}},{"id":"be8873e4-5492-4298-8d66-342b263f0f7f","block_type":"box","text":"so. The Manager has entered into sub-advisory agreements with BlackRock (Singapore) Limited and BlackRock","page_number":24,"box":{"x":69,"y":748,"width":790,"height":11}},{"id":"107e0eaa-925b-4346-bd36-85da6f56b587","block_type":"box","text":"International Limited with respect to the Cayman Subsidiary. BlackRock also provides certain administrative services","page_number":24,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"3b442f3e-e381-49c2-81b2-de73ffe6a262","block_type":"box","text":"for the Cayman Subsidiary, but receives no additional compensation for doing so. The Cayman Subsidiary will also","page_number":24,"box":{"x":68,"y":778,"width":815,"height":11}},{"id":"0f0028e4-4af6-470f-87ad-c301e60202d7","block_type":"box","text":"enter into separate contracts for the provision of custody and accounting agent services with the same or with","page_number":24,"box":{"x":69,"y":793,"width":785,"height":11}},{"id":"85c64d76-9e6f-4454-93d6-4f5c5322fe4f","block_type":"box","text":"affiliates of the same service providers that provide those services to the Fund.","page_number":24,"box":{"x":69,"y":808,"width":568,"height":11}},{"id":"fedbf5a3-28a5-44ae-a75f-f46b23942764","block_type":"box","text":"The financial statements of the Cayman Subsidiary will be consolidated with the Fund’s financial statements in","page_number":24,"box":{"x":101,"y":831,"width":791,"height":11}},{"id":"e1a4f6a3-2393-410a-ac9c-1b0cbac8422d","block_type":"box","text":"the Fund’s Annual and Semi-Annual Financial Statements and Additional Information. Copies of the Fund’s annual","page_number":24,"box":{"x":68,"y":846,"width":810,"height":11}},{"id":"bfabdaef-b48b-4600-8fd9-4f2d90447466","block_type":"box","text":"and semi-annual reports and Annual and Semi-Annual Financial Statements and Additional Information are available","page_number":24,"box":{"x":69,"y":861,"width":825,"height":11}},{"id":"eb0266be-1cfd-4f84-9dd4-05eec3f70097","block_type":"box","text":"at no charge upon request as indicated on the front cover of this SAI.","page_number":24,"box":{"x":69,"y":876,"width":493,"height":11}},{"id":"c1123f79-5454-455b-9ef3-3ca7083f7f12","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3efea79e-6814-481e-84e5-3da6fae62be4","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dcad1d37-ff8a-4f8e-b797-6e2e2b125f54","block_type":"box","text":"It is expected that the Cayman Subsidiary will be a “controlled foreign corporation” and that all of its net income","page_number":25,"box":{"x":102,"y":45,"width":800,"height":11}},{"id":"b1dd59af-c183-45e9-b752-6e6659b0e240","block_type":"box","text":"will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required to","page_number":25,"box":{"x":68,"y":60,"width":796,"height":11}},{"id":"35491505-3aa7-4b8f-babf-9d94165edc47","block_type":"box","text":"report all of the Cayman Subsidiary’s net income as ordinary income regardless of whether that income would be","page_number":25,"box":{"x":69,"y":75,"width":809,"height":11}},{"id":"1a9db43c-6d50-435b-bae5-f2670cc0c5bf","block_type":"box","text":"treated differently (for example, as capital gain) at the Cayman Subsidiary level and regardless of whether that","page_number":25,"box":{"x":68,"y":90,"width":790,"height":11}},{"id":"14ad07c5-454a-4018-9c02-e33b6c42c5fd","block_type":"box","text":"income is distributed to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a","page_number":25,"box":{"x":70,"y":105,"width":829,"height":11}},{"id":"5dbca585-e181-430e-aa56-1621096b232f","block_type":"box","text":"net loss is realized by the Cayman Subsidiary in any taxable year, the loss will generally not be available to offset the","page_number":25,"box":{"x":69,"y":120,"width":835,"height":12}},{"id":"8a6de5e5-ed4f-490c-b6af-40239acd8c0d","block_type":"box","text":"Fund’s other income. It is not expected that the Cayman Subsidiary will be subject to an entity-level federal tax.","page_number":25,"box":{"x":70,"y":135,"width":791,"height":11}},{"id":"c473348d-fa55-4429-8341-db7cfc0dc7e1","block_type":"box","text":"The Cayman Subsidiary is not registered under the 1940 Act, and, unless otherwise noted in the Fund’s","page_number":25,"box":{"x":101,"y":158,"width":744,"height":11}},{"id":"e8ad599a-f3e7-46b3-9275-96ab94486cfd","block_type":"box","text":"Prospectus or this SAI, is not subject to all the investor protections of the 1940 Act. However, the Fund wholly owns","page_number":25,"box":{"x":69,"y":173,"width":826,"height":11}},{"id":"53d37813-a234-424f-8e54-9a71ec952a0b","block_type":"box","text":"and controls the Cayman Subsidiary, and the Fund and the Cayman Subsidiary are both managed by BlackRock,","page_number":25,"box":{"x":69,"y":188,"width":797,"height":12}},{"id":"355faa3a-8c3f-46f9-afc5-f1b6e9df8a48","block_type":"box","text":"making it unlikely that the Cayman Subsidiary will take action contrary to the interests of the Fund and its","page_number":25,"box":{"x":69,"y":203,"width":753,"height":12}},{"id":"1435a3bd-d2f5-45e8-85d3-d7c8d20aec2a","block_type":"box","text":"shareholders. The Fund’s Board of Directors has oversight responsibility for the investment activities of the Fund,","page_number":25,"box":{"x":69,"y":218,"width":807,"height":12}},{"id":"567bb4a8-770e-4f7c-9f0c-c9b96c837cd2","block_type":"box","text":"including its investment in the Cayman Subsidiary, and the Fund’s role as sole shareholder of the Cayman","page_number":25,"box":{"x":70,"y":234,"width":755,"height":11}},{"id":"45c65c9b-8337-40d9-b1c1-42888473a225","block_type":"box","text":"Subsidiary. Except as noted above, the Cayman Subsidiary will be subject to the same investment restrictions and","page_number":25,"box":{"x":69,"y":249,"width":815,"height":11}},{"id":"877ca1f8-cc8b-4243-a372-3e1c364fa279","block_type":"box","text":"limitations, and follow the same compliance policies and procedures, as the Fund. In addition, changes in the laws of","page_number":25,"box":{"x":70,"y":264,"width":837,"height":11}},{"id":"9e4d587d-d278-446a-b49c-ce9be71dac9e","block_type":"box","text":"the United States and/or the Cayman Islands could result in the inability of the Fund and/or the Cayman Subsidiary","page_number":25,"box":{"x":68,"y":279,"width":827,"height":11}},{"id":"2a272d98-a5f2-4e3f-b8d9-567fff918643","block_type":"box","text":"to operate as described in the Fund’s Prospectus and this SAI and could adversely affect the Fund. For example, the","page_number":25,"box":{"x":68,"y":294,"width":831,"height":11}},{"id":"b22d6436-53fb-4f6d-8f23-c1364bd0b1f5","block_type":"box","text":"Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax,","page_number":25,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"2ffd110d-d51d-4bca-a27f-a83409093846","block_type":"box","text":"gift tax or withholding tax on the Cayman Subsidiary. If Cayman Islands law changes such that the Cayman Subsidiary","page_number":25,"box":{"x":68,"y":324,"width":840,"height":12}},{"id":"60bfbbdb-a5c1-485b-b73d-612565631c7c","block_type":"box","text":"must pay Cayman Islands taxes, Fund shareholders would likely suffer decreased investment returns.","page_number":25,"box":{"x":69,"y":339,"width":724,"height":12}},{"id":"640a89fb-8ed5-4820-ade4-f3e86cddbbaf","block_type":"box","text":"Delaware Subsidiary.","page_number":25,"box":{"x":102,"y":362,"width":150,"height":11}},{"id":"cce494aa-7dc5-4ff0-8f42-272088dfdca0","block_type":"box","text":"The Fund has formed its wholly-owned and controlled Delaware Subsidiary to hold interests","page_number":25,"box":{"x":258,"y":362,"width":650,"height":11}},{"id":"d11fe186-3d70-49f1-aab4-1fd9117f1d06","block_type":"box","text":"in certain of its portfolio companies to permit the Fund to continue to meet the qualifications for taxation as a","page_number":25,"box":{"x":70,"y":377,"width":784,"height":11}},{"id":"443e9901-14a6-433f-8125-6ce552721883","block_type":"box","text":"regulated investment company (“RIC”) under the Code. The Delaware Subsidiary will qualify for the exclusion from the","page_number":25,"box":{"x":69,"y":392,"width":838,"height":12}},{"id":"3965d7da-3b58-45f0-a795-8a6476baa3e4","block_type":"box","text":"definition of the term investment company pursuant to Section 3(c)(7) of the Investment Company Act or will","page_number":25,"box":{"x":69,"y":407,"width":771,"height":12}},{"id":"bc2e0d6b-6f0f-4cb6-8a0c-7ca7830b562c","block_type":"box","text":"otherwise not be required to register as an investment company under the Investment Company Act. Entities such as","page_number":25,"box":{"x":69,"y":423,"width":835,"height":11}},{"id":"b9b09cfa-1f0e-4ef6-bcea-8e50537eba0b","block_type":"box","text":"the Delaware Subsidiary are typically organized as corporations or as limited liability companies or partnerships that","page_number":25,"box":{"x":68,"y":438,"width":830,"height":11}},{"id":"3ac5a5d7-09f1-420e-8a4b-0f89b8d2f7db","block_type":"box","text":"elect to be taxed as corporations for U.S. federal income tax purposes and hold certain investments in pass-through","page_number":25,"box":{"x":69,"y":453,"width":828,"height":11}},{"id":"1b910453-c5f8-485c-af47-e1f453a42f24","block_type":"box","text":"tax entities (such as partnership interests or limited liability company interests) the gross revenue from which would","page_number":25,"box":{"x":68,"y":468,"width":828,"height":11}},{"id":"2c12a3f7-f5b2-42b1-acfd-36c417313648","block_type":"box","text":"be “bad income” for purposes of RIC qualification. In general, in order to comply with diversification requirements","page_number":25,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"6cfb0e08-2588-4440-a31a-2190ab85aacb","block_type":"box","text":"under Subchapter M of the Code, the Fund may not invest more than 25% of the value of its assets in the securities","page_number":25,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"424f81b7-22e5-401d-92e8-a4fd6dc5bc3d","block_type":"box","text":"of one or more Subsidiaries that are engaged in the same or similar or related trades or businesses. The Delaware","page_number":25,"box":{"x":69,"y":513,"width":820,"height":12}},{"id":"b4e02dfb-2fdb-4e65-8670-d7ba419b4720","block_type":"box","text":"Subsidiary will be subject to federal corporation income tax. The Delaware Subsidiary’s distributions of its after-tax","page_number":25,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"1d18f857-993a-44fa-af27-2c7fea0148fe","block_type":"box","text":"earnings to the Fund will be “good income” for RIC qualification purposes, and will be treated as qualified dividend","page_number":25,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"611010a8-bfb8-4b7c-aa39-859eed23500e","block_type":"box","text":"income (for non-corporate shareholders) and as eligible for the dividends received deduction (for corporate","page_number":25,"box":{"x":70,"y":559,"width":756,"height":11}},{"id":"1ec82e6c-998a-48c4-82e7-54ddad5f5ece","block_type":"box","text":"shareholders), or as returns of capital.","page_number":25,"box":{"x":69,"y":574,"width":273,"height":11}},{"id":"1ba4854f-5335-4090-a1d3-fd8a05a47325","block_type":"box","text":"II. Investment Restrictions","page_number":25,"box":{"x":69,"y":604,"width":194,"height":9}},{"id":"1e08e55b-8336-4457-b29f-085160c9b166","block_type":"box","text":"The Fund has adopted restrictions and policies relating to the investment of the Fund’s assets and its activities.","page_number":25,"box":{"x":101,"y":627,"width":800,"height":11}},{"id":"abf030be-9e3e-44b7-ae6c-8999234b3576","block_type":"box","text":"Certain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":25,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"fcf6e5ea-bdd5-4981-a633-1b3a7276fde7","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":25,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"bc6ac2bc-d970-4160-8d5f-483f1e52614d","block_type":"box","text":"Company Act, means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the","page_number":25,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"201d984c-c195-42ee-b53a-0adbb657097f","block_type":"box","text":"outstanding shares are represented or (ii) more than 50% of the outstanding shares). The Fund has also adopted","page_number":25,"box":{"x":69,"y":687,"width":807,"height":11}},{"id":"8355f679-e06b-4926-9315-b1420fc5ca59","block_type":"box","text":"certain non-fundamental investment restrictions, which may be changed by the Board of Directors without","page_number":25,"box":{"x":69,"y":702,"width":752,"height":12}},{"id":"82617ea3-e61b-465a-b316-5152f52aecc4","block_type":"box","text":"shareholder approval.","page_number":25,"box":{"x":69,"y":718,"width":153,"height":10}},{"id":"2a97f38a-2c36-4ed6-820d-10c9e07392a0","block_type":"box","text":"Set forth below are the Fund’s fundamental and non-fundamental investment restrictions. Unless otherwise","page_number":25,"box":{"x":102,"y":740,"width":767,"height":9}},{"id":"1f5eecff-ad5f-42f1-9930-85a4af11f552","block_type":"box","text":"provided, all references below to the assets of the Fund are in terms of current market value.","page_number":25,"box":{"x":70,"y":755,"width":664,"height":11}},{"id":"2bfcc2ca-9b06-4b23-b69c-68d28edd4c0e","block_type":"box","text":"Under its fundamental investment restrictions, the Fund may not:","page_number":25,"box":{"x":102,"y":778,"width":463,"height":11}},{"id":"128f754c-3ca7-47a7-bf1a-2b9e87f326e7","block_type":"box","text":"(1) Invest more than 25% of its assets, taken at market value at the time of each investment, in the","page_number":25,"box":{"x":134,"y":801,"width":713,"height":11}},{"id":"1c91c027-893f-4490-b9a6-868ddfc0783b","block_type":"box","text":"securities of issuers in any particular industry (excluding the U.S. Government and its agencies and","page_number":25,"box":{"x":102,"y":816,"width":709,"height":11}},{"id":"e74218ae-174b-4f79-8b4b-8eec18c0da0b","block_type":"box","text":"instrumentalities).","page_number":25,"box":{"x":102,"y":831,"width":127,"height":11}},{"id":"d2c4cb17-fbc7-4a27-89dd-48382acc3472","block_type":"box","text":"(2) Make investments for the purpose of exercising control or management.","page_number":25,"box":{"x":134,"y":853,"width":538,"height":12}},{"id":"120420e4-002c-4592-906a-ce76822ff0c9","block_type":"box","text":"(3) Purchase or sell real estate, except that, to the extent permitted by applicable law, the Fund may invest","page_number":25,"box":{"x":134,"y":876,"width":762,"height":11}},{"id":"8f11e5f5-9b0a-434d-930e-014b6b908459","block_type":"box","text":"in securities directly or indirectly secured by real estate or interests therein or issued by companies that invest in","page_number":25,"box":{"x":102,"y":891,"width":806,"height":11}},{"id":"5dc30977-7692-4e6a-8551-2324dfb1ff2c","block_type":"box","text":"real estate or interests therein.","page_number":25,"box":{"x":102,"y":907,"width":221,"height":8}},{"id":"a782b95d-bf51-4154-b507-68439a8fa53b","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"8c6034ee-65f2-4686-9c59-4805b14327db","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7155910a-c6df-4d35-a11f-3e1a6d686cdd","block_type":"box","text":"(4) Make loans to other persons, except that the acquisition of bonds, debentures or other corporate debt","page_number":26,"box":{"x":134,"y":45,"width":756,"height":11}},{"id":"cf0ad1a3-8386-4b6e-8462-4708bd19f5ab","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates","page_number":26,"box":{"x":102,"y":60,"width":790,"height":11}},{"id":"c0cd8f4f-33d7-4d24-b36c-bae21cc31a71","block_type":"box","text":"of deposit, bankers acceptances, repurchase agreements or any similar instruments shall not be deemed to be","page_number":26,"box":{"x":102,"y":75,"width":795,"height":11}},{"id":"3d3a3891-5489-4292-ab9d-f9570f0bbd71","block_type":"box","text":"the making of a loan, and except further that the Fund may lend its portfolio securities, provided that the lending","page_number":26,"box":{"x":101,"y":90,"width":805,"height":11}},{"id":"9f0105b9-fb29-4911-801d-7aedb2f19904","block_type":"box","text":"of portfolio securities may be made only in accordance with applicable law and the guidelines set forth in its","page_number":26,"box":{"x":102,"y":105,"width":772,"height":11}},{"id":"ae541853-1a88-43ee-9cdb-989a216e4580","block_type":"box","text":"Prospectus and Statement of Additional Information, as they may be amended from time to time.","page_number":26,"box":{"x":102,"y":120,"width":690,"height":11}},{"id":"f7780c60-a2c6-405c-9ba2-ac79542cd5f1","block_type":"box","text":"(5) Issue senior securities to the extent such issuance would violate applicable law.","page_number":26,"box":{"x":134,"y":143,"width":595,"height":11}},{"id":"9ff88887-0f5b-4c2b-ba76-d9ffd04546a5","block_type":"box","text":"(6) Borrow money, except that (i) the Fund may borrow from banks (as defined in the Investment Company","page_number":26,"box":{"x":134,"y":166,"width":756,"height":11}},{"id":"bf905256-7977-4e0b-90e3-a34d6e3a3c43","block_type":"box","text":"Act) in amounts up to 33","page_number":26,"box":{"x":101,"y":181,"width":177,"height":11}},{"id":"5dfc27df-1788-481c-81d7-db2f6241dde5","block_type":"box","text":"1⁄","page_number":26,"box":{"x":280,"y":181,"width":5,"height":5}},{"id":"92ebb1d7-2de7-4b4d-92aa-b4a101fc16a6","block_type":"box","text":"1⁄3","page_number":26,"box":{"x":283,"y":181,"width":8,"height":9}},{"id":"5455e440-00a7-4af5-902c-4546b09ace84","block_type":"box","text":"⁄3","page_number":26,"box":{"x":289,"y":184,"width":6,"height":6}},{"id":"541c7418-bc4a-4a65-8c35-e4bff34f01df","block_type":"box","text":"% of its total assets (including the amount borrowed), (ii) the Fund may, to the extent","page_number":26,"box":{"x":295,"y":181,"width":605,"height":11}},{"id":"539172e1-9688-4561-8b6d-83c53f9ba2fd","block_type":"box","text":"permitted by applicable law, borrow up to an additional 5% of its total assets for temporary purposes, (iii) the","page_number":26,"box":{"x":102,"y":196,"width":777,"height":11}},{"id":"459e75c4-6ad5-48a2-99aa-c3f8264b44c4","block_type":"box","text":"Fund may obtain such short-term credit as may be necessary for the clearance of purchases and sales of","page_number":26,"box":{"x":102,"y":211,"width":753,"height":11}},{"id":"51daf6cf-74e3-4214-8884-fb4ce9bbf93b","block_type":"box","text":"portfolio securities and (iv) the Fund may purchase securities on margin to the extent permitted by applicable","page_number":26,"box":{"x":102,"y":226,"width":778,"height":11}},{"id":"32e2ff97-d9ad-44da-99d8-24f56cba40b1","block_type":"box","text":"law. The Fund may not pledge its assets other than to secure such borrowings or, to the extent permitted by the","page_number":26,"box":{"x":102,"y":241,"width":797,"height":11}},{"id":"a04e2507-8ca3-4a54-ad3d-0a4de4c85508","block_type":"box","text":"Fund’s investment policies as set forth in its Prospectus and Statement of Additional Information, as they may","page_number":26,"box":{"x":102,"y":256,"width":789,"height":11}},{"id":"38760f95-9d6f-4a68-b6fc-6cf7a432d71c","block_type":"box","text":"be amended from time to time, in connection with hedging transactions, short sales, when-issued and forward","page_number":26,"box":{"x":102,"y":271,"width":787,"height":12}},{"id":"513e0b11-cfff-41df-847a-46aaeba0d2d4","block_type":"box","text":"commitment transactions and similar investment strategies.","page_number":26,"box":{"x":101,"y":287,"width":428,"height":11}},{"id":"578e09bb-14fa-4ac3-b5ce-9ff39c57b962","block_type":"box","text":"(7) Underwrite securities of other issuers except insofar as the Fund technically may be deemed an","page_number":26,"box":{"x":134,"y":309,"width":707,"height":11}},{"id":"7fb1216b-d3b6-4d28-bd94-b2702b3b36dc","block_type":"box","text":"underwriter under the Securities Act of 1933, as amended, (the “Securities Act”) in selling portfolio securities.","page_number":26,"box":{"x":102,"y":324,"width":788,"height":12}},{"id":"db1ce6ac-13ad-4ac4-bd75-9fb31e9bbad9","block_type":"box","text":"(8) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so","page_number":26,"box":{"x":134,"y":347,"width":773,"height":11}},{"id":"fa3a3dfa-c300-4a20-bad4-f2f2588a9282","block_type":"box","text":"in accordance with applicable law and the Fund’s Prospectus and Statement of Additional Information, as they","page_number":26,"box":{"x":102,"y":362,"width":786,"height":11}},{"id":"702f0a02-7464-4892-9a75-72a2fc7d7192","block_type":"box","text":"may be amended from time to time, and without registering as a commodity pool operator under the Commodity","page_number":26,"box":{"x":102,"y":377,"width":797,"height":12}},{"id":"40b5d2b4-fcb7-4fb3-b231-d0ac663111de","block_type":"box","text":"Exchange Act.","page_number":26,"box":{"x":102,"y":393,"width":97,"height":11}},{"id":"7c15158a-7970-4ee4-8563-a30b9fe39d6e","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":26,"box":{"x":102,"y":415,"width":768,"height":11}},{"id":"19524d44-0928-4aef-905d-16136fb7bb79","block_type":"box","text":"approval, the Fund may not:","page_number":26,"box":{"x":69,"y":430,"width":197,"height":11}},{"id":"4d2e1320-3eae-41e5-8c2b-797977c95a4c","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":26,"box":{"x":134,"y":453,"width":747,"height":11}},{"id":"8a70dc76-a08a-4523-ab36-837e499942cf","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":26,"box":{"x":102,"y":468,"width":759,"height":11}},{"id":"d03c437a-a22c-47b7-8ed4-1797c4046d32","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":26,"box":{"x":102,"y":483,"width":779,"height":11}},{"id":"ac093df1-c6a4-4268-8857-708822b414d2","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":26,"box":{"x":101,"y":498,"width":761,"height":11}},{"id":"d2fd99ae-2455-425f-b687-81c4870c27ca","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":26,"box":{"x":102,"y":513,"width":795,"height":12}},{"id":"32fd1575-697c-4ae5-b336-e7f38004627e","block_type":"box","text":"12(d)(1).","page_number":26,"box":{"x":102,"y":529,"width":60,"height":10}},{"id":"9c9189cf-903c-4ba3-87a8-b4b9a1534e20","block_type":"box","text":"(b) Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":26,"box":{"x":134,"y":551,"width":770,"height":11}},{"id":"1875a875-ae6d-4c19-acb3-2c4968c3b48c","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and by applicable law.","page_number":26,"box":{"x":102,"y":566,"width":761,"height":11}},{"id":"b38e1598-2b33-490f-9802-01fb1bac74ae","block_type":"box","text":"In addition, the Fund may not cease to operate as a diversified investment company, as defined under the","page_number":26,"box":{"x":102,"y":589,"width":754,"height":11}},{"id":"340db641-ac76-4907-838d-c6f9d9c694b8","block_type":"box","text":"Investment Company Act, without approval of a majority of the Fund’s outstanding voting securities.","page_number":26,"box":{"x":70,"y":604,"width":707,"height":11}},{"id":"30929b93-8cb8-46ab-b403-d5babb196227","block_type":"box","text":"Except with respect to restriction (6), all limitations under the Fund’s fundamental or non-fundamental","page_number":26,"box":{"x":102,"y":627,"width":724,"height":11}},{"id":"a5c35fa0-4a44-4074-84e9-2f23aa2d0722","block_type":"box","text":"investment restrictions apply only at the time that a transaction is undertaken. Any change in the percentage of the","page_number":26,"box":{"x":70,"y":642,"width":821,"height":11}},{"id":"9bebe445-68ef-4bae-9360-9788f847973f","block_type":"box","text":"Fund’s assets invested in certain securities or other instruments resulting from market fluctuations or other changes","page_number":26,"box":{"x":70,"y":657,"width":833,"height":11}},{"id":"49279e9a-899f-4155-a4f0-a9ae88d35742","block_type":"box","text":"in the Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines that it is","page_number":26,"box":{"x":70,"y":672,"width":826,"height":11}},{"id":"5f0dfbff-3817-44b7-a0ab-2b2d886c598c","block_type":"box","text":"practicable to sell or close out the investment without undue market or tax consequences.","page_number":26,"box":{"x":70,"y":687,"width":642,"height":11}},{"id":"f9cf19bc-4421-4533-a6c3-850f1d2eacaf","block_type":"box","text":"For purposes of investment restriction (1) above, the Fund uses the classifications and sub-classifications of","page_number":26,"box":{"x":102,"y":710,"width":775,"height":11}},{"id":"4ef303b0-19f8-4646-a8f2-cf3e17218d46","block_type":"box","text":"Morgan Stanley Capital International (“MSCI”) as a guide to identify industries. To the extent that an industry","page_number":26,"box":{"x":70,"y":725,"width":776,"height":11}},{"id":"42e927db-7696-4887-965f-830c2a5dac89","block_type":"box","text":"classification or subclassification is not provided by MSCI, the Fund may utilize any one or more of the industry","page_number":26,"box":{"x":69,"y":740,"width":792,"height":11}},{"id":"bf3bf47b-5d14-4366-b608-6d494e21b872","block_type":"box","text":"classifications or subclassifications used by one or more other widely recognized market indexes or rating group","page_number":26,"box":{"x":69,"y":755,"width":798,"height":11}},{"id":"a94a764a-272e-4e28-aaa2-e15dd48a54ec","block_type":"box","text":"indexes, one or more third party providers of industry classifications, and/or as defined by Fund Management.","page_number":26,"box":{"x":70,"y":770,"width":786,"height":12}},{"id":"b48b639a-21ad-48dc-bec4-f96a58d4a6a8","block_type":"box","text":"Currently, for industry classifications or subclassifications not provided by MSCI, the Fund uses the classifications of","page_number":26,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"3b7dfc7f-83f0-4755-9f11-7b559b426525","block_type":"box","text":"Barclays PLC.","page_number":26,"box":{"x":70,"y":801,"width":94,"height":11}},{"id":"6679f791-b361-404f-b72f-81240abb5d6a","block_type":"box","text":"Each Subsidiary will follow the Fund’s fundamental and non-fundamental investment restrictions, described","page_number":26,"box":{"x":102,"y":823,"width":763,"height":11}},{"id":"ad2ba17f-045b-4ea2-be98-eb78b78415ab","block_type":"box","text":"above, with respect to its investments.","page_number":26,"box":{"x":69,"y":839,"width":275,"height":10}},{"id":"18c74c07-8dc5-43db-8018-5fbff1733579","block_type":"box","text":"I-10","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b01c13ef-b0a3-4dba-b561-abd5b231745e","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c196e68f-9460-44a0-b0f1-d6b8061e9e3c","block_type":"box","text":"III. Information on Directors and Officers","page_number":27,"box":{"x":69,"y":45,"width":294,"height":9}},{"id":"ef226fcc-a1e5-40be-8e1d-7685a9a18cea","block_type":"box","text":"The Board of Directors of the Fund consists of fifteen individuals (each, a “Director”), thirteen of whom are not","page_number":27,"box":{"x":101,"y":67,"width":790,"height":11}},{"id":"e3c194c5-eb3e-4df4-861a-76d824656e66","block_type":"box","text":"“interested persons” of the Fund as defined in the Investment Company Act (the “Independent Directors”). The","page_number":27,"box":{"x":70,"y":82,"width":790,"height":12}},{"id":"be367690-15ca-4c05-b88f-d6fdadaa9234","block_type":"box","text":"registered investment companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are","page_number":27,"box":{"x":69,"y":98,"width":785,"height":11}},{"id":"328f56fa-4af5-4454-9640-67b2262309cc","block_type":"box","text":"organized into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex","page_number":27,"box":{"x":69,"y":113,"width":818,"height":11}},{"id":"9ec18d75-6812-45bf-8c39-85466343624c","block_type":"box","text":"(each, a “BlackRock Fund Complex”). The Fund is included in the BlackRock Fund Complex referred to as the","page_number":27,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"34383877-f111-4f60-8c32-9f7cb4f30d4b","block_type":"box","text":"BlackRock Multi-Asset Complex. The Directors also oversee as board members the operations of the other open-end","page_number":27,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"2a60f92f-85f6-4b62-be7d-4a743ed9fad3","block_type":"box","text":"registered investment companies included in the BlackRock Multi-Asset Complex.","page_number":27,"box":{"x":69,"y":158,"width":579,"height":11}},{"id":"046096a5-2157-4d46-bc6b-b7217ff322ab","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund. The Chair of the Board is an Independent","page_number":27,"box":{"x":101,"y":181,"width":764,"height":11}},{"id":"6d042c6f-ac3e-4bdc-b462-45569b320e24","block_type":"box","text":"Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director. The Board has","page_number":27,"box":{"x":70,"y":196,"width":815,"height":11}},{"id":"bf25dc37-df36-4e73-a9af-469935ad5444","block_type":"box","text":"five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee,","page_number":27,"box":{"x":68,"y":211,"width":832,"height":11}},{"id":"35129768-2412-4592-99e4-fbd6c9491aec","block_type":"box","text":"a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board is to","page_number":27,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"d4bfed62-f5ff-42ff-9d98-3e7f2f4b40b4","block_type":"box","text":"preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":27,"box":{"x":70,"y":241,"width":793,"height":11}},{"id":"c302b974-9a03-4ef6-817b-a918ca97e802","block_type":"box","text":"Directors generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":27,"box":{"x":70,"y":256,"width":790,"height":12}},{"id":"5c38bea2-99e0-42b1-9ead-00e9a44c2949","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":27,"box":{"x":69,"y":271,"width":810,"height":12}},{"id":"4dbd2b12-acc9-4a2d-aed3-24707629e945","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Directors meet regularly outside the","page_number":27,"box":{"x":69,"y":286,"width":811,"height":12}},{"id":"3b79a124-c344-43fc-8051-39341312ee34","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":27,"box":{"x":70,"y":302,"width":794,"height":11}},{"id":"3b55df5b-14b6-4120-90e6-6d7d5b456291","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":27,"box":{"x":69,"y":317,"width":816,"height":11}},{"id":"5393e333-4096-4304-86dc-56f26758d4cf","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":27,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"97f6cc75-25dc-40ab-910d-64c3a261922e","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":27,"box":{"x":70,"y":347,"width":811,"height":11}},{"id":"f1b75a53-30df-41b2-b165-79fa0539c0fb","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":27,"box":{"x":68,"y":362,"width":809,"height":11}},{"id":"1b8db498-19dc-4606-a0df-aa4a5fa04b6c","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":27,"box":{"x":69,"y":377,"width":825,"height":12}},{"id":"44c61f12-c9f5-4634-a50a-a3a1585c3955","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":27,"box":{"x":69,"y":392,"width":441,"height":12}},{"id":"ccd00a4a-1bc5-40f5-ac7f-8ebc605ff5f5","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":27,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"1fd3d54d-6a6f-490c-8951-bc6d66f1bbe1","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":27,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"590ab246-dc09-4620-8f9f-adc5b8674fca","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s charter, and the Fund’s","page_number":27,"box":{"x":68,"y":445,"width":819,"height":11}},{"id":"2d59bde0-be72-4719-99dc-1601147ae77b","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":27,"box":{"x":70,"y":460,"width":812,"height":12}},{"id":"9f4821e1-1c76-404d-8f78-f316063aa8a1","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":27,"box":{"x":69,"y":475,"width":819,"height":12}},{"id":"8dc0486f-9c1f-46a8-a48f-36a4ff304e57","block_type":"box","text":"the operations of the Fund.","page_number":27,"box":{"x":68,"y":491,"width":192,"height":11}},{"id":"59d7d762-853f-44f2-8e32-a286aebe75a5","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":27,"box":{"x":102,"y":513,"width":785,"height":12}},{"id":"d65e612a-5a3a-42be-8c4b-a5fb3cf66a77","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":27,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"3dc9312d-9a39-4b45-8532-48f1bfda8ffd","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":27,"box":{"x":69,"y":543,"width":832,"height":12}},{"id":"ef88e57f-7f94-4394-84a4-7d1250f19641","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":27,"box":{"x":68,"y":559,"width":820,"height":11}},{"id":"0da93e48-df5f-4bf6-a3a2-423b57712458","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":27,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"ed35ee1e-d1e6-4dd7-9a5a-29ef63b9765c","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":27,"box":{"x":70,"y":589,"width":767,"height":11}},{"id":"49ea3741-88e4-4602-a58a-3de0a8a2ee33","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":27,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"ab8c3f01-e69b-44a8-b801-1ef2deef9d95","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":27,"box":{"x":70,"y":619,"width":803,"height":11}},{"id":"32ead2f8-a31d-49da-a973-9845bb6fb15f","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":27,"box":{"x":69,"y":634,"width":840,"height":12}},{"id":"ddaa2b92-37de-4a80-bdf2-283a1d7acbed","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":27,"box":{"x":69,"y":649,"width":814,"height":12}},{"id":"429b88d8-cbe6-4792-a7d5-bfe5f6cef00f","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":27,"box":{"x":69,"y":664,"width":817,"height":12}},{"id":"1ce1bc15-026d-4b24-bf41-98ce1f05326c","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":27,"box":{"x":69,"y":680,"width":812,"height":11}},{"id":"63079116-4782-4f6d-b58a-27287f41c4c1","block_type":"box","text":"testing of the Fund’s compliance program and reports to the Board regarding compliance matters for the Fund and its","page_number":27,"box":{"x":68,"y":695,"width":840,"height":11}},{"id":"5913bc13-9e03-484a-98cf-8479ece04b23","block_type":"box","text":"service providers. The Independent Directors have engaged independent legal counsel to assist them in performing","page_number":27,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"d1883872-cc68-4f43-bc52-4855c07dd22d","block_type":"box","text":"their oversight responsibilities.","page_number":27,"box":{"x":68,"y":725,"width":218,"height":11}},{"id":"5800d029-55c5-4335-b75c-94b1e811cc11","block_type":"box","text":"Audit Committee.","page_number":27,"box":{"x":101,"y":748,"width":122,"height":9}},{"id":"2030527f-f73a-4f77-af82-9fb155ab39de","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":27,"box":{"x":229,"y":748,"width":673,"height":11}},{"id":"2eafa74a-bd0d-42d7-a1b5-d7d9aef771d3","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors.","page_number":27,"box":{"x":68,"y":763,"width":834,"height":11}},{"id":"3c0d5187-10dd-49ca-8f22-ca730b2d3a7b","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":27,"box":{"x":68,"y":778,"width":820,"height":11}},{"id":"a411df83-fe57-4e24-819a-4953ca5fd3b3","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":27,"box":{"x":68,"y":793,"width":823,"height":11}},{"id":"56aedc28-f07b-452a-8824-dd0c802bb5eb","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":27,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"d20e1b16-ca81-422c-8996-2b4c5c86b8b3","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":27,"box":{"x":70,"y":823,"width":825,"height":11}},{"id":"ac5990f3-8dcf-48cf-b576-10bfa0281d34","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":27,"box":{"x":70,"y":838,"width":807,"height":12}},{"id":"44d87476-1abf-4110-828f-025af79d5d71","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":27,"box":{"x":68,"y":853,"width":781,"height":11}},{"id":"8dcad5e4-4189-40ec-8f60-0ec556c1e58a","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":27,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"f6442482-ce3d-4d2b-8aaa-c9b7f3e6cfd1","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":27,"box":{"x":69,"y":884,"width":838,"height":11}},{"id":"51ee815f-ecc0-4376-aec0-8164f4661d83","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":27,"box":{"x":69,"y":899,"width":825,"height":11}},{"id":"7cd40197-4cb4-4406-862d-94e67b078204","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e6f7101a-6a05-4916-9ca0-d2a09bfaa4c7","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1dd727f-c2f2-4673-abd5-badf29e0d29e","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":28,"box":{"x":70,"y":45,"width":809,"height":11}},{"id":"65e20e4a-3b82-499b-b401-23a93f3f6d86","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":28,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"a0e87de1-40ff-466d-a5f7-d50a74b8cc1d","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":28,"box":{"x":69,"y":75,"width":774,"height":11}},{"id":"30bd34a8-ee3e-4573-af12-85d94591276c","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":28,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"685cc80d-a3f8-4f70-87e3-49ee3bf1cec9","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":28,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"5a1c46f7-3cc0-4210-8685-e0d8ec7f0c05","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":28,"box":{"x":69,"y":120,"width":812,"height":12}},{"id":"dd768ab4-709c-44ba-a7fc-559ae25e17fe","block_type":"box","text":"During the fiscal year ended April 30, 2026, the Audit Committee met four times.","page_number":28,"box":{"x":70,"y":135,"width":576,"height":12}},{"id":"8d7e0495-36c6-492f-bdc7-a256a53875ee","block_type":"box","text":"Governance and Nominating Committee.","page_number":28,"box":{"x":102,"y":158,"width":286,"height":11}},{"id":"97f66f69-1ee8-4a7d-9386-8f33ea59c4cd","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":28,"box":{"x":394,"y":158,"width":464,"height":11}},{"id":"7e5ead92-9159-4de0-88a1-500b597397fa","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":28,"box":{"x":70,"y":173,"width":838,"height":11}},{"id":"9d7a281e-ead3-440f-9cef-e251ca404108","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":28,"box":{"x":70,"y":188,"width":786,"height":11}},{"id":"461dbbfc-f616-49b9-83df-c7c4daa00737","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Fund and","page_number":28,"box":{"x":69,"y":203,"width":804,"height":12}},{"id":"585002c9-f314-4e70-a2e8-b7f36218ac1b","block_type":"box","text":"recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":28,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"afce6a52-5cad-4e34-be28-4bb496edf3d5","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":28,"box":{"x":70,"y":234,"width":828,"height":11}},{"id":"070f8f15-8cbc-44c6-bfb9-fd4b25e86195","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":28,"box":{"x":70,"y":249,"width":809,"height":11}},{"id":"be276806-a6cf-4280-b390-68bc3061c9a0","block_type":"box","text":"and make recommendations regarding Independent Director compensation; (5) monitor corporate governance","page_number":28,"box":{"x":69,"y":264,"width":780,"height":11}},{"id":"ee5a413b-5def-427b-be9e-49e10417428d","block_type":"box","text":"matters and develop appropriate recommendations to the Board; (6) act as the administrative committee with","page_number":28,"box":{"x":69,"y":279,"width":782,"height":11}},{"id":"609da7c5-ef0f-496d-a17f-487610d3ef25","block_type":"box","text":"respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee) and","page_number":28,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"4201eb93-d6ef-4b77-b049-86fe1ab3c4e1","block_type":"box","text":"codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities as","page_number":28,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"159b49f8-0b01-4848-b85f-691ba098484b","block_type":"box","text":"may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":28,"box":{"x":69,"y":324,"width":809,"height":12}},{"id":"3d663b44-35a8-4274-bc96-5db2ea36189f","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the Fund’s","page_number":28,"box":{"x":69,"y":339,"width":796,"height":12}},{"id":"5e3d3335-bc59-4a31-8d4e-883566a295b8","block_type":"box","text":"Amended and Restated Bylaws (“Bylaws”), shareholders must follow certain procedures to nominate a person for","page_number":28,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"0e37c108-8d7d-46ea-8172-f4e1040abe50","block_type":"box","text":"election as a Director at a shareholder meeting at which Directors are to be elected. Under these advance notice","page_number":28,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"c5dfa627-2738-4090-a705-d1a05ae9b8b5","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Fund must be delivered to or mailed and received","page_number":28,"box":{"x":70,"y":385,"width":839,"height":11}},{"id":"b04a552c-e403-4400-9563-02d8ab1aed37","block_type":"box","text":"at the principal executive offices of the Fund not later than the close of business on the fifth day following the day on","page_number":28,"box":{"x":69,"y":400,"width":833,"height":11}},{"id":"42692348-ed4b-44d4-840b-a822858758fb","block_type":"box","text":"which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was made,","page_number":28,"box":{"x":68,"y":415,"width":781,"height":11}},{"id":"0a5a2649-2530-47e7-9013-dfb06ff4b186","block_type":"box","text":"whichever first occurs. The Fund’s Bylaws provide that notice of a proposed nomination must include certain","page_number":28,"box":{"x":68,"y":430,"width":773,"height":11}},{"id":"44b62f41-1ce5-4953-b3a1-962388dc75dc","block_type":"box","text":"information about the shareholder and the nominee, as well as certain other information, including a written consent","page_number":28,"box":{"x":70,"y":445,"width":832,"height":12}},{"id":"53fb29cf-7456-4170-b54a-18c2c105f3b8","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details. The Board","page_number":28,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"b8cd610b-130a-49d9-b651-8963644ad353","block_type":"box","text":"has adopted a written charter for the Governance Committee. During the fiscal year ended April 30, 2026, the","page_number":28,"box":{"x":69,"y":475,"width":785,"height":12}},{"id":"2f15504c-995c-4339-9f31-7b9d8da88900","block_type":"box","text":"Governance Committee met eleven times.","page_number":28,"box":{"x":69,"y":491,"width":297,"height":9}},{"id":"cb4b7364-90a7-4d5f-a0f5-b89e69b5a94d","block_type":"box","text":"Compliance Committee.","page_number":28,"box":{"x":102,"y":513,"width":168,"height":11}},{"id":"a2e2549b-860d-465f-b816-fdd78b89f570","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":28,"box":{"x":276,"y":513,"width":629,"height":11}},{"id":"d15e7f9a-bd33-461b-bcc8-7a8b0e880aa8","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":28,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"31aab010-7fdc-48c3-818b-75fabf6ce406","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":28,"box":{"x":68,"y":543,"width":773,"height":12}},{"id":"336f2043-fef5-42e0-b7fd-ac34894a6b2b","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of","page_number":28,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"f85cd695-52fb-4fd1-86c3-f82c18eedacc","block_type":"box","text":"BlackRock and any sub-adviser and the Fund’s third-party service providers. The Compliance Committee’s","page_number":28,"box":{"x":70,"y":574,"width":753,"height":11}},{"id":"6eb4e6fa-e93f-479f-80c1-b96c763f3ea7","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Fund and its","page_number":28,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"910a44b0-daf1-43c5-928f-32ba1e80b245","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":28,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"0631e07a-9cac-4038-aa66-9b0d4b720021","block_type":"box","text":"and, where appropriate, recommend policies concerning the Fund’s compliance with applicable law; (3) review","page_number":28,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"77d7059c-4ae6-497b-b1c9-eed4f2786b29","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":28,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"f5edb573-23d3-4c53-85d6-66f50dbd0e05","block_type":"box","text":"regarding the Fund’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":28,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"17c3a5dd-8f17-425b-835b-7e16c4d95327","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":28,"box":{"x":69,"y":664,"width":812,"height":12}},{"id":"ec076c32-6eeb-48ad-8ba8-ce41db9da379","block_type":"box","text":"and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":28,"box":{"x":69,"y":680,"width":825,"height":11}},{"id":"6df0ae7d-c307-4ac9-b494-84cf821f38e3","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":28,"box":{"x":69,"y":695,"width":811,"height":11}},{"id":"5fe8b546-76f7-4414-8238-39e3fbb5725d","block_type":"box","text":"year ended April 30, 2026, the Compliance Committee met four times.","page_number":28,"box":{"x":68,"y":710,"width":504,"height":11}},{"id":"d9b29d71-2672-4c50-87eb-c6ed289406d4","block_type":"box","text":"Per formance Oversight Committee.","page_number":28,"box":{"x":102,"y":732,"width":248,"height":12}},{"id":"3791e00c-3a11-40fc-80b9-2a710767b54d","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":28,"box":{"x":356,"y":732,"width":531,"height":12}},{"id":"dad00d7e-21d0-477f-af62-d8736240e62e","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":28,"box":{"x":69,"y":748,"width":829,"height":11}},{"id":"a5277e94-3da3-4502-9466-490c43706cac","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is","page_number":28,"box":{"x":69,"y":763,"width":832,"height":11}},{"id":"060b1f7e-6ce0-4397-bca8-1df04ed38bf6","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":28,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"2f0bf072-ae2e-4ab0-94d1-66cd3543b0bb","block_type":"box","text":"upon performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":28,"box":{"x":69,"y":793,"width":818,"height":11}},{"id":"d254da70-13d4-4ffb-890d-3b169ed69896","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":28,"box":{"x":69,"y":808,"width":782,"height":11}},{"id":"c8c6ded6-8405-48ac-88e8-341fe743b601","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":28,"box":{"x":70,"y":823,"width":829,"height":11}},{"id":"a63cd09c-9d01-4161-9fe0-8f7d648c00d3","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":28,"box":{"x":69,"y":838,"width":816,"height":11}},{"id":"5ab17e19-9c23-4c78-a4cb-0b21992364e3","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":28,"box":{"x":69,"y":854,"width":803,"height":10}},{"id":"b6a4632a-ea87-4d3c-a1c1-4a31a4f172df","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":28,"box":{"x":69,"y":869,"width":827,"height":11}},{"id":"64b99ab4-49f9-4585-9e13-f883d5a40a2b","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":28,"box":{"x":68,"y":884,"width":811,"height":11}},{"id":"d62180c9-9ea1-413c-91fd-d5f35eacf81b","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":28,"box":{"x":69,"y":899,"width":757,"height":11}},{"id":"ce06ec59-073d-40b0-a802-a4eee55d15c5","block_type":"box","text":"I-12","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"fd630c93-41c1-4a21-8437-21c26cec70b9","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1849fa3a-b910-425f-ab24-01cb7baeeaa1","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":29,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"7beacf20-95c1-4cfc-992e-1b0430f1bf31","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":29,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"022c7e1d-ed93-4ecf-88c9-2f0acf20205f","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":29,"box":{"x":69,"y":75,"width":780,"height":11}},{"id":"7718ce7a-869d-42bd-b1bd-b99115caaad1","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":29,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"0994ae23-9d33-4b33-8dff-f72b06fd4d48","block_type":"box","text":"ended April 30, 2026, the Performance Oversight Committee met five times.","page_number":29,"box":{"x":69,"y":105,"width":546,"height":11}},{"id":"e74e73c2-805a-42af-82d4-5fead1c9e4ed","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":29,"box":{"x":101,"y":128,"width":186,"height":11}},{"id":"1d5a0a97-75ef-4b4d-a7f9-7caa821ca523","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":29,"box":{"x":293,"y":128,"width":598,"height":11}},{"id":"86a449e1-af9b-4bf5-918f-14258af1f389","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":29,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"4fea5338-9ec8-4874-9f6c-00a92c41f6ad","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":29,"box":{"x":69,"y":158,"width":796,"height":11}},{"id":"82d66bd2-6f60-4752-b17f-25e428e8b25b","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":29,"box":{"x":69,"y":173,"width":788,"height":11}},{"id":"aa54a7de-0cbb-4bce-b22c-bf02492999c4","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":29,"box":{"x":69,"y":188,"width":813,"height":12}},{"id":"097143e7-8829-4fbe-8801-e893764f5167","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":29,"box":{"x":68,"y":203,"width":816,"height":12}},{"id":"864a12f0-47c5-4cbf-9e26-c0360937e1e3","block_type":"box","text":"the fiscal year ended April 30, 2026, the Ad Hoc Topics Committee did not meet.","page_number":29,"box":{"x":68,"y":218,"width":577,"height":12}},{"id":"96f1c4f9-9a04-43f8-b462-2c4f5b48a88f","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":29,"box":{"x":101,"y":241,"width":771,"height":11}},{"id":"c7cc5c4c-ebdf-4e5f-be33-5b7b8333e362","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":29,"box":{"x":69,"y":256,"width":830,"height":11}},{"id":"7d92008c-2e2c-4ddc-be2a-c42f26adf805","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":29,"box":{"x":69,"y":271,"width":833,"height":12}},{"id":"24779c3e-c510-4f3e-8e48-308e04d185b9","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":29,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"f62590ec-6b23-4511-b4ec-ebf2218ed96e","block_type":"box","text":"in determining that a particular Independent Director was and continues to be qualified to serve as a Director, the","page_number":29,"box":{"x":70,"y":302,"width":811,"height":11}},{"id":"dd748350-0143-4e19-baf5-58cb6fa6ddae","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":29,"box":{"x":70,"y":317,"width":787,"height":11}},{"id":"7b6b5aed-530e-4af6-abdd-3756de2baf71","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":29,"box":{"x":69,"y":332,"width":807,"height":11}},{"id":"cafa8138-dba5-4a56-bcea-363475dc5e59","block_type":"box","text":"which allow the Board to operate effectively in governing the Fund and protecting the interests of shareholders.","page_number":29,"box":{"x":68,"y":347,"width":792,"height":11}},{"id":"79b19276-bdb9-48c7-846f-973376087a7e","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":29,"box":{"x":68,"y":362,"width":832,"height":11}},{"id":"83ccd708-4192-47b7-8f7b-3514992e09af","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":29,"box":{"x":69,"y":377,"width":823,"height":11}},{"id":"4d148294-ace0-450e-81b3-717f8d4b3e27","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":29,"box":{"x":69,"y":392,"width":771,"height":12}},{"id":"f546fbae-371b-44d3-b98f-89fd1713676a","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":29,"box":{"x":69,"y":407,"width":475,"height":12}},{"id":"ecc4c130-e44f-4cc2-aa61-0382d66212ec","block_type":"box","text":"Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":29,"box":{"x":102,"y":430,"width":794,"height":11}},{"id":"1fd8de07-188c-4128-b2df-bd8fbfce33e4","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":29,"box":{"x":69,"y":445,"width":807,"height":12}},{"id":"d96abe34-58ee-41ed-9c5f-d455a564b284","block_type":"box","text":"board member of the Fund and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":29,"box":{"x":69,"y":460,"width":835,"height":12}},{"id":"cfb35fbd-189b-4135-9550-e231e233927d","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":29,"box":{"x":70,"y":475,"width":759,"height":12}},{"id":"ac4ae8c9-3b68-42ed-bed2-9c91916cc7b2","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":29,"box":{"x":70,"y":491,"width":685,"height":11}},{"id":"5f336bf0-f5ca-4588-b7d5-bb5014cca998","block_type":"box","text":"ad hoc","page_number":29,"box":{"x":762,"y":491,"width":47,"height":9}},{"id":"10e2e972-6c23-4e92-afa2-1b2e53ab7efb","block_type":"box","text":"committees","page_number":29,"box":{"x":814,"y":491,"width":82,"height":9}},{"id":"eb2ce38c-125d-477d-b3ce-51f5035d0622","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":29,"box":{"x":68,"y":506,"width":395,"height":11}},{"id":"05b91429-644c-4c82-b3b3-382e389dcbeb","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":29,"box":{"x":101,"y":528,"width":754,"height":11}},{"id":"ba1ad4ad-f55c-488d-a47b-adc38b993e24","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":29,"box":{"x":69,"y":544,"width":494,"height":10}},{"id":"dea4c660-040a-4123-a0e0-b496eda89b39","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":29,"box":{"x":69,"y":572,"width":408,"height":9}},{"id":"40839d99-656d-4f40-9057-231dd7a856ca","block_type":"box","text":"Independent Directors","page_number":29,"box":{"x":70,"y":588,"width":156,"height":11}},{"id":"ea45f80e-752b-49d9-b282-3905ab2e3ece","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":29,"box":{"x":69,"y":603,"width":781,"height":12}},{"id":"6d4a7fed-10f7-477d-a8ad-48ab699943b6","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":29,"box":{"x":265,"y":618,"width":604,"height":12}},{"id":"f08cb06b-2ef3-4f65-add2-e9825704f3c1","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":29,"box":{"x":265,"y":634,"width":623,"height":11}},{"id":"f062cec7-34f7-40de-9397-5ba6721d258d","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":29,"box":{"x":265,"y":649,"width":637,"height":11}},{"id":"9470cfe6-fe1e-482e-a415-bca56fd8b97b","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":29,"box":{"x":265,"y":664,"width":631,"height":11}},{"id":"7689084a-1f66-469e-8138-8e9a288e260e","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":29,"box":{"x":264,"y":679,"width":626,"height":10}},{"id":"1c28d401-f6d0-4fdd-9c8e-eef61e83c688","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":29,"box":{"x":265,"y":694,"width":639,"height":11}},{"id":"a4200f7d-5602-4d9c-babf-7b595345d828","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":29,"box":{"x":264,"y":709,"width":637,"height":11}},{"id":"9993faf2-c116-4bde-86f0-b660b069e621","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":29,"box":{"x":265,"y":725,"width":586,"height":11}},{"id":"19cd163f-9ba4-4281-b547-9b7f4945a49b","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":29,"box":{"x":265,"y":739,"width":640,"height":12}},{"id":"680fa6d0-d1fe-466e-912e-8cf8cf15a7b0","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":29,"box":{"x":265,"y":755,"width":389,"height":11}},{"id":"d0809a45-435b-46ab-ac80-374d22748bef","block_type":"box","text":"I-13","page_number":29,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"d7033677-5b89-464b-bad7-6fcf79fec380","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9f949bda-2422-4e34-8577-c9fdbaa23d66","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":30,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"f0cadb93-09c6-4b09-ba7b-2f4117f7a374","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":30,"box":{"x":69,"y":65,"width":806,"height":12}},{"id":"3ee4cbce-bfaf-4581-a512-2cab2ffbf432","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":30,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"0b7c7c99-3457-4096-9f45-286317c3dfa1","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":30,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"bb1ad09e-5a98-4daf-9a6d-674cd5669ea1","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":30,"box":{"x":265,"y":111,"width":562,"height":9}},{"id":"c9785df6-bd93-4a79-ba89-81151a9042d7","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":30,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"c61d5148-e90d-455b-8475-97dc2e34768f","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":30,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"36ad107d-1b55-48a8-add0-4778294c4908","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":30,"box":{"x":265,"y":156,"width":641,"height":11}},{"id":"734545c0-00a5-4e9f-94bd-ef2fc5274933","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":30,"box":{"x":264,"y":171,"width":638,"height":12}},{"id":"da97c629-b3ac-419f-91ae-e42b1c6ad41c","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":30,"box":{"x":265,"y":186,"width":584,"height":12}},{"id":"706c1fdd-caa4-4952-bc2c-7e4787082765","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":30,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"4306c587-7e82-4d3e-9db1-a737ac72e487","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":30,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"d274c422-2d11-491c-82ea-f75c7ea6c315","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":30,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"1934e4a4-866c-4327-8fb2-848f1d36300c","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":30,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"1e60378f-1e06-4ffc-a367-a2f9dd14f6ea","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":30,"box":{"x":69,"y":269,"width":837,"height":12}},{"id":"b72f378d-1722-4c18-b009-f68abd2e43aa","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":30,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"8162e9c3-db99-4b87-bd25-4feb8ddfcfdc","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":30,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"6d0f4937-4b78-42be-8297-a94d85f8bf96","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":30,"box":{"x":265,"y":314,"width":601,"height":12}},{"id":"4d7728f0-ac52-46cc-9c89-15ea84d7c737","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":30,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"ad6404b3-e499-4a28-a843-48e84d706774","block_type":"box","text":"perspective on the markets and the economy.","page_number":30,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"72e8dd2b-08dd-4e58-985a-cd391bdd3a48","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":30,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"bb7087ec-8f01-48a6-b81b-d97810346bde","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":30,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"0a2c7743-a30c-4d09-b8ca-2d2f67a61bb9","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":30,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"83c88697-3b38-400f-aac6-e928601231e3","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":30,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"2e9a8706-78cb-4497-9886-23858a0ad245","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":30,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"c1547b7a-a886-4079-84cc-d42cbdca681f","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":30,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"3d6c0e09-2946-4ef7-a542-e05663ee6c52","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":30,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"ab241d19-ac22-40ff-aca7-b55f5ba0ba73","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":30,"box":{"x":69,"y":481,"width":777,"height":11}},{"id":"aed473e7-00cc-4cf2-9064-abc78b7701ed","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":30,"box":{"x":265,"y":496,"width":613,"height":12}},{"id":"6467ec91-e8d4-4cb0-bc47-26f3c27712fd","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":30,"box":{"x":265,"y":511,"width":563,"height":12}},{"id":"9c5ed3ae-03e8-43fc-8a75-d22ce20b86fb","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":30,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"5f2d2ac8-46f1-4b0a-9328-f05574c79390","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":30,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"8d4b9133-3019-4cd1-875b-a69c82547738","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":30,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"d2bde817-c097-4908-9ed1-43c6f76ece60","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":30,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"aa45372c-f23c-40d5-9a8a-e975bbc2b3be","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Directors prior to becoming an","page_number":30,"box":{"x":265,"y":587,"width":627,"height":11}},{"id":"81be336a-9f3f-4e2a-87fd-0391f20f4880","block_type":"box","text":"Independent Director.","page_number":30,"box":{"x":265,"y":602,"width":151,"height":11}},{"id":"7fdecf7a-c6d6-4c50-9905-b5887dc42e5f","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":30,"box":{"x":70,"y":625,"width":806,"height":11}},{"id":"164328d7-8735-4005-87bc-ce7d915df116","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":30,"box":{"x":264,"y":640,"width":584,"height":11}},{"id":"3a49c818-a395-4167-a867-d4c69b38d7c3","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":30,"box":{"x":265,"y":655,"width":622,"height":11}},{"id":"3df8d54e-bbef-454c-9f2b-ab7c7058408f","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":30,"box":{"x":265,"y":670,"width":638,"height":11}},{"id":"a02be259-2520-469d-9a2e-22873ddfbbbc","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":30,"box":{"x":265,"y":685,"width":570,"height":12}},{"id":"bbae0285-d917-403b-a3bb-a3b71b70a036","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":30,"box":{"x":265,"y":700,"width":642,"height":12}},{"id":"beb9cff3-f589-4829-8f62-b8ded40bb3b7","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":30,"box":{"x":265,"y":716,"width":626,"height":11}},{"id":"ede78768-5acb-430a-8a7b-022aba683404","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":30,"box":{"x":265,"y":731,"width":630,"height":11}},{"id":"ad1067b2-a030-47de-b8bd-09bffae09bb9","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":30,"box":{"x":265,"y":746,"width":602,"height":11}},{"id":"12bc5221-6f0c-44a7-8883-4144a5752c37","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":30,"box":{"x":264,"y":761,"width":643,"height":11}},{"id":"63e1ba36-bcaa-419d-984f-865449bd28ec","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":30,"box":{"x":264,"y":776,"width":639,"height":11}},{"id":"8a5b1afb-d694-4905-aaf7-6a847e53c95f","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":30,"box":{"x":264,"y":791,"width":641,"height":11}},{"id":"2327534a-052b-423a-ae23-339d73de7628","block_type":"box","text":"applicable Commission rules.","page_number":30,"box":{"x":265,"y":806,"width":208,"height":11}},{"id":"25163a74-9a76-4f3a-a016-764d7b852eed","block_type":"box","text":"I-14","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e65f8a28-77ef-4ace-a561-8ae4c4d294e8","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3aa490dc-8319-4959-84d9-368d2dab8b8e","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":31,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"92abc5e1-3a64-46af-ba0e-7ade31019292","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":31,"box":{"x":69,"y":65,"width":769,"height":12}},{"id":"f5cf3724-4bac-40b9-b050-87ef4b8d701c","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":31,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"bf13e589-baff-46e4-b4f2-2ce7345cc001","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":31,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"925c9aea-0f97-44ca-986a-f535276b269d","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":31,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"28897594-7883-4168-a222-16130a759711","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":31,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"73ea5c2a-10d9-4582-a9e9-9dd98f05bb12","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":31,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"ba476ed1-6f4f-47b9-8922-b9ad85dd131f","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":31,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"d1c434d9-da03-48ab-b4cd-9b9013f3f539","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":31,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"2f4e2a06-e784-4f38-b947-127568d468da","block_type":"box","text":"articles and books on these topics.","page_number":31,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"c935b89b-e2b4-4671-b0ba-dccd5e69d733","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":31,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"8652d143-735c-4ce9-a163-6cbe7df0ceef","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":31,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"7b0a917d-6c36-4894-a2c9-d3c0ab6efd87","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":31,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"1e7d752c-3ba0-4d70-a0c7-f2dfe8fa924b","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":31,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"1424d048-12f9-4242-96f7-22fc64ddd06b","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":31,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"04e162f3-45c7-417f-9383-8aa714975acc","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":31,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"3aa3f707-4d12-4c86-b7c6-120ff8c50e85","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":31,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"c58bc10d-fde0-46ac-9eb2-6ecc8799c64b","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":31,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"3f4b488d-b609-4d2a-b8fe-ce831da8dfcc","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":31,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"32795eb3-036e-496f-8267-06e155b0d30c","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":31,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"538fc8e5-9536-4493-8737-9597ab5a61df","block_type":"box","text":"exchanges, and other industry firms. 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More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":31,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"e2c057a1-db97-4cac-a243-04e00406210c","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":31,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"c7004c64-f40e-4346-9988-5b3f10e3de22","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":31,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"b4958aaa-b652-42c0-9f65-71890150e7f1","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":31,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"8e5e3030-e9e6-4437-9a45-0173ec4b6994","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":31,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"6ba925b2-1b78-4072-89bd-492744d8de71","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":31,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"e1c11a04-c691-428d-80a1-cdbf6216e451","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":31,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"4b44017c-3e4c-4c6f-be73-12ff5a815944","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":31,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"38e812a4-56ed-4f82-be33-a48f32fa2c1b","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. 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In addition, Ms. Richards serves as a","page_number":31,"box":{"x":265,"y":595,"width":628,"height":11}},{"id":"b58a5e63-6e06-491f-86ee-87bcb9314710","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":31,"box":{"x":265,"y":610,"width":460,"height":11}},{"id":"4b8c29f7-eba8-4488-875f-45b4ddb170bd","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":31,"box":{"x":70,"y":632,"width":818,"height":12}},{"id":"5e424e84-b0f7-4fa3-9e5d-b8d52e9f83e4","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":31,"box":{"x":264,"y":647,"width":603,"height":12}},{"id":"09939622-df90-4b0b-af87-e268e3e6869d","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":31,"box":{"x":265,"y":663,"width":606,"height":11}},{"id":"7ad1a4ce-e267-49dc-ae36-1be582c163a4","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":31,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"3ca79ef4-e70a-4c37-91d1-980682388535","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":31,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"24ab4491-89aa-41c2-8d0d-7cfe35ea3583","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":31,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"08e9b149-88be-4c17-b2f6-ad5674689340","block_type":"box","text":"various private and non-profit boards.","page_number":31,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"ce15697c-65ac-45cf-aabb-5fb21fe563de","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":31,"box":{"x":70,"y":746,"width":833,"height":11}},{"id":"57914e68-06a1-4b42-b09d-c8ae2751d4bb","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":31,"box":{"x":265,"y":761,"width":638,"height":11}},{"id":"375fd8a2-281b-4213-b06d-f00b8d064cb9","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":31,"box":{"x":265,"y":776,"width":608,"height":11}},{"id":"3bc9c944-6508-44cf-9761-fad7271d07a5","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":31,"box":{"x":264,"y":791,"width":645,"height":11}},{"id":"4e801c33-c49e-4e5a-a582-f3efa7dd381f","block_type":"box","text":"firm’s executive committee. 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Mr. Stern also served as consultant to the Independent","page_number":31,"box":{"x":265,"y":882,"width":583,"height":11}},{"id":"d0fc17ba-a0f5-44db-921b-431414c422a8","block_type":"box","text":"Directors prior to becoming an Independent Director.","page_number":31,"box":{"x":265,"y":897,"width":372,"height":11}},{"id":"300301ab-fe1b-4dbd-a1d0-c237609eaefa","block_type":"box","text":"I-15","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"389d766c-abd6-4790-8bb2-ce393e88978a","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a33aaf0f-5f80-4196-9b22-fa503463d154","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":32,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"225bc4ec-b817-4b83-bb3d-d2c4e2d57757","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":32,"box":{"x":70,"y":65,"width":807,"height":12}},{"id":"6dc4ab1c-321c-44e7-b96d-01b7def4830d","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":32,"box":{"x":264,"y":81,"width":641,"height":11}},{"id":"688b4aa5-e8fc-4ad0-9145-4b4b20f0129a","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":32,"box":{"x":265,"y":96,"width":618,"height":11}},{"id":"5185f9ae-e791-40b7-8fd0-67415b6fad92","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":32,"box":{"x":265,"y":111,"width":594,"height":11}},{"id":"d12d9dc6-ae90-4cf9-ace8-f86484f768b0","block_type":"box","text":"accounting and consulting firm. 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In particular, Mr. Fairbairn’s","page_number":32,"box":{"x":264,"y":353,"width":593,"height":11}},{"id":"7a3848c2-69e5-4e99-aa55-fc1043566370","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":32,"box":{"x":265,"y":368,"width":629,"height":11}},{"id":"cf2ac092-1b3b-4e80-9dd6-2bd6d425a200","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":32,"box":{"x":265,"y":383,"width":639,"height":11}},{"id":"3c54be3a-03d6-4e60-86f2-1028679c228c","block_type":"box","text":"a wealth of practical business knowledge and leadership. 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Mr. Perlowski is a member of","page_number":32,"box":{"x":264,"y":678,"width":572,"height":11}},{"id":"2459fa37-e35f-458b-83e5-f3c3a14c8594","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":32,"box":{"x":265,"y":693,"width":294,"height":9}},{"id":"b17f9b44-992f-44dd-98ef-a4eb7431eb06","block_type":"box","text":"Biographical Information","page_number":32,"box":{"x":69,"y":724,"width":178,"height":11}},{"id":"0d3b489c-c6bd-4964-9f8f-dcfefb475f2d","block_type":"box","text":"Certain biographical and other information relating to the Directors is set forth below, including their address and","page_number":32,"box":{"x":102,"y":747,"width":806,"height":11}},{"id":"188fddba-1008-4c1f-9b03-75338a7ea2b6","block_type":"box","text":"year of birth, principal occupations for at least the last five years, length of time served, total number of 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As of December 31, 2025 (and,","page_number":37,"box":{"x":69,"y":223,"width":809,"height":11}},{"id":"82075013-c128-4ef9-8030-a6bb917934ad","block_type":"box","text":"with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026) none of the Independent Directors of the Fund or their","page_number":37,"box":{"x":68,"y":238,"width":832,"height":11}},{"id":"67ce7a0b-c9d7-48ad-b238-92a956b64c87","block_type":"box","text":"immediate family members owned beneficially or of record any securities of the Fund’s investment adviser, principal","page_number":37,"box":{"x":70,"y":253,"width":824,"height":11}},{"id":"51e8f75d-6c48-4521-bf4a-9c9ed70e86fa","block_type":"box","text":"underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such entities.","page_number":37,"box":{"x":69,"y":268,"width":830,"height":12}},{"id":"b5c22b02-f503-40f6-a70d-a755904a064c","block_type":"box","text":"Compensation of Directors","page_number":37,"box":{"x":69,"y":299,"width":194,"height":11}},{"id":"0e7574af-f30a-4b5e-8f72-fc6c7fea4228","block_type":"box","text":"Each Director who is an Independent Director is paid as compensation an annual retainer of $375,000 per year","page_number":37,"box":{"x":102,"y":321,"width":796,"height":11}},{"id":"b1e2027d-9552-41d1-b9e5-67c67b449e2e","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":37,"box":{"x":68,"y":336,"width":810,"height":11}},{"id":"1d865e33-763a-41dc-b33f-7e2accac9d62","block_type":"box","text":"including the Fund, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":37,"box":{"x":70,"y":351,"width":837,"height":12}},{"id":"58ec1b96-58ce-4f42-99a0-54edfa788f6b","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":37,"box":{"x":69,"y":366,"width":807,"height":12}},{"id":"7571b1ba-7b43-4222-b73c-f8cebaf19a6f","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":37,"box":{"x":69,"y":382,"width":791,"height":11}},{"id":"f59fa789-6796-4d49-80dd-e30282b99a55","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":37,"box":{"x":68,"y":397,"width":786,"height":11}},{"id":"ae9878fd-f672-4f9a-a1cd-9741e24f1439","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":37,"box":{"x":69,"y":412,"width":769,"height":11}},{"id":"83d9e0ef-51a2-409c-9916-391ad228652d","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":37,"box":{"x":69,"y":427,"width":778,"height":11}},{"id":"8746975e-75a8-445c-86e6-2095c38f81a7","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":37,"box":{"x":69,"y":441,"width":689,"height":12}},{"id":"8152d033-b10a-4b4b-b9ab-23bfa4e3b779","block_type":"box","text":"The following table sets forth the compensation the Fund paid to the Directors for the fiscal year ended","page_number":37,"box":{"x":101,"y":465,"width":736,"height":11}},{"id":"23494400-ef29-4619-990f-ac03a8b65e66","block_type":"box","text":"April 30, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the calendar year","page_number":37,"box":{"x":68,"y":480,"width":818,"height":11}},{"id":"797c8df7-4ae2-4327-bbe5-5278f570874d","block_type":"box","text":"ended December 31, 2025.","page_number":37,"box":{"x":69,"y":495,"width":197,"height":11}},{"id":"90cb06b9-84ea-4609-8d6a-4a4a6fea1032","block_type":"box","text":"Name","page_number":37,"box":{"x":69,"y":564,"width":32,"height":7}},{"id":"90a837c0-ffc4-4f36-831b-b764f13b9aaa","block_type":"box","text":"1","page_number":37,"box":{"x":102,"y":564,"width":4,"height":3}},{"id":"725f798b-de0d-4193-886b-bf14b503f350","block_type":"box","text":"Compensation","page_number":37,"box":{"x":596,"y":554,"width":83,"height":8}},{"id":"76b336e8-050d-4f53-b585-8a37517156d0","block_type":"box","text":"from the Fund","page_number":37,"box":{"x":597,"y":564,"width":80,"height":7}},{"id":"055220d6-dcfc-4058-a025-ef67b38eb109","block_type":"box","text":"Estimated","page_number":37,"box":{"x":712,"y":523,"width":58,"height":7}},{"id":"76741d32-dd72-4b54-a5a7-9d1c0d53e0ed","block_type":"box","text":"Annual","page_number":37,"box":{"x":721,"y":534,"width":39,"height":7}},{"id":"396e1120-2375-4927-b255-fec806bd33ac","block_type":"box","text":"Benefits","page_number":37,"box":{"x":718,"y":543,"width":47,"height":8}},{"id":"c510e328-d2cd-4bd3-9911-4a0b61318d07","block_type":"box","text":"Upon","page_number":37,"box":{"x":727,"y":554,"width":28,"height":8}},{"id":"25127e09-866c-465b-94b3-c46f7fa35dbf","block_type":"box","text":"Retirement","page_number":37,"box":{"x":709,"y":564,"width":65,"height":7}},{"id":"800afe41-cd3d-4921-b240-e1f3ee6f63c1","block_type":"box","text":"Aggregate","page_number":37,"box":{"x":826,"y":523,"width":61,"height":9}},{"id":"9db9036e-939b-4b3c-92a7-070a8996bc4d","block_type":"box","text":"Compensation","page_number":37,"box":{"x":815,"y":533,"width":82,"height":9}},{"id":"64d83ab6-4578-4f78-b09a-dc6c0daff7f7","block_type":"box","text":"from the Fund and","page_number":37,"box":{"x":803,"y":543,"width":106,"height":8}},{"id":"d9b8be89-1d5f-4111-aba3-83b205f98812","block_type":"box","text":"other BlackRock","page_number":37,"box":{"x":806,"y":554,"width":101,"height":7}},{"id":"44a284f0-5599-4dd2-9909-46b152b4cf97","block_type":"box","text":"Advised Funds","page_number":37,"box":{"x":812,"y":564,"width":84,"height":7}},{"id":"9180717d-631c-4e1f-ab44-d8f2b351126d","block_type":"box","text":"1","page_number":37,"box":{"x":897,"y":564,"width":3,"height":3}},{"id":"e0c79413-8bd5-4a94-8f36-ce6f2d047932","block_type":"box","text":"Independent Directors","page_number":37,"box":{"x":70,"y":582,"width":156,"height":10}},{"id":"78f0815a-f593-4b1f-88e9-9c2d604e7a12","block_type":"box","text":"Christopher J. 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Management, Advisory and Other Service Arrangements","page_number":38,"box":{"x":69,"y":86,"width":432,"height":11}},{"id":"dcfee378-e0fa-4608-8b7b-a44e5ce80960","block_type":"box","text":"The Fund has entered into a management agreement with the Manager (the “Management Agreement”),","page_number":38,"box":{"x":101,"y":109,"width":743,"height":11}},{"id":"ce901e77-cb7c-422e-b702-25b23434839c","block_type":"box","text":"pursuant to which the Manager receives for its services to the Fund monthly compensation at the annual rate of","page_number":38,"box":{"x":70,"y":124,"width":798,"height":11}},{"id":"b2038603-a611-4d93-8c73-e381312d4107","block_type":"box","text":"0.75% of the average daily net assets of the Fund.","page_number":38,"box":{"x":69,"y":139,"width":359,"height":11}},{"id":"8af085a2-b4da-4d34-8ff1-fae7c8ad9255","block_type":"box","text":"The Manager has agreed to contractually waive a portion of its management fee payable by the Fund 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0.75%","page_number":38,"box":{"x":69,"y":222,"width":818,"height":11}},{"id":"20c62d42-a683-4a45-9aae-07d346b95b38","block_type":"box","text":"$10 billion . .","page_number":38,"box":{"x":69,"y":237,"width":92,"height":11}},{"id":"f926929d-a879-4e6c-816a-95c5923c240b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15 billion 0.69%","page_number":38,"box":{"x":168,"y":237,"width":719,"height":11}},{"id":"49f67752-8951-4024-a631-f1b41e2400a6","block_type":"box","text":"$15 billion . .","page_number":38,"box":{"x":69,"y":252,"width":92,"height":11}},{"id":"2ad180c3-9fac-4096-8e0a-558540d6cfa1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20 billion 0.68%","page_number":38,"box":{"x":168,"y":252,"width":719,"height":11}},{"id":"0b5749ca-2963-4cc7-b671-8a78a2efe2d6","block_type":"box","text":"$20 billion . .","page_number":38,"box":{"x":69,"y":268,"width":92,"height":10}},{"id":"8a09b6e3-0c00-4732-b8db-68f6e80ee964","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25 billion 0.67%","page_number":38,"box":{"x":168,"y":268,"width":719,"height":10}},{"id":"8f957344-2876-4bda-add1-3b7aefa5225c","block_type":"box","text":"$25 billion . .","page_number":38,"box":{"x":69,"y":283,"width":92,"height":10}},{"id":"2b38c8dd-e4ee-41d4-808d-4a8fd2c7a3a6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30 billion 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0.62%","page_number":38,"box":{"x":168,"y":313,"width":719,"height":10}},{"id":"869dff88-fb53-405a-a762-55b6dd6f3abe","block_type":"box","text":"$60 billion . .","page_number":38,"box":{"x":69,"y":328,"width":92,"height":11}},{"id":"3805a7e2-f012-4c15-b8cf-e777cf2fd089","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $80 billion 0.61%","page_number":38,"box":{"x":168,"y":328,"width":719,"height":11}},{"id":"bfb50a81-3823-4e4a-8db5-a278735a4192","block_type":"box","text":"$80 billion . .","page_number":38,"box":{"x":69,"y":343,"width":92,"height":11}},{"id":"cebb4dce-26f0-45e2-81cc-282a5b5f1b94","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 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In addition, the Manager may delegate certain of","page_number":38,"box":{"x":68,"y":680,"width":825,"height":11}},{"id":"f7b726c9-f128-49dd-8a4a-8269304d93c0","block_type":"box","text":"its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":38,"box":{"x":70,"y":695,"width":801,"height":11}},{"id":"e4b60624-05ff-426e-9b91-809ca97178ef","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":38,"box":{"x":70,"y":710,"width":823,"height":11}},{"id":"5fbef85d-3181-4115-b893-7ae2c2308a2b","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":38,"box":{"x":70,"y":725,"width":508,"height":11}},{"id":"68f3f1e1-fcf3-4c7e-88f6-6ece6df7195e","block_type":"box","text":"BlackRock has entered into sub-advisory agreements with BlackRock (Singapore) Limited (“BRS”) and BlackRock","page_number":38,"box":{"x":102,"y":748,"width":804,"height":11}},{"id":"772ba36a-4c78-42cb-86f8-3a5c463c97f2","block_type":"box","text":"International Limited (“BIL,” and, together with BRS, the “Sub-Advisers”) pursuant to which BlackRock pays each Sub","page_number":38,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"a39116ec-2f98-40e2-9886-3be3acd32440","block_type":"box","text":"Adviser for providing services to BlackRock with respect to that portion of the Fund for which each Sub-Adviser acts","page_number":38,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"2f7617ab-d1d2-4412-a0f6-8266e8bbb393","block_type":"box","text":"as sub-adviser a monthly fee at an annual rate equal to a percentage of the management fee paid to BlackRock","page_number":38,"box":{"x":69,"y":793,"width":796,"height":11}},{"id":"840d92d6-582c-4a21-a781-ffdf530d05cc","block_type":"box","text":"under the Management Agreement.","page_number":38,"box":{"x":69,"y":808,"width":250,"height":11}},{"id":"472237fd-3173-4110-8285-98c25e69afd6","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":38,"box":{"x":69,"y":838,"width":335,"height":11}},{"id":"bb2f9993-d86b-41b2-9280-b1101801549b","block_type":"box","text":"Rick Rieder and Russ Koesterich, CFA, JD, are the portfolio managers and are jointly and primarily responsible","page_number":38,"box":{"x":102,"y":861,"width":785,"height":11}},{"id":"01eace18-6535-432f-b903-2f665ed071de","block_type":"box","text":"for the day-to-day management of the Fund.","page_number":38,"box":{"x":68,"y":876,"width":309,"height":11}},{"id":"1639d17b-de06-4265-9c6a-f8b906f7dd29","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"744ef545-56fb-4596-96e0-1c533f189e26","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf675244-92ec-42db-9013-19d432d9d9a4","block_type":"box","text":"Other Funds and Accounts Managed","page_number":39,"box":{"x":70,"y":45,"width":257,"height":11}},{"id":"ee6f0ff1-13b2-49da-af75-639d67eefdc9","block_type":"box","text":"The following table sets forth information about the funds and accounts other than the Fund for which the Fund’s","page_number":39,"box":{"x":101,"y":67,"width":806,"height":12}},{"id":"1fdda0f6-3597-4eba-9b88-ba2c1f10ef91","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of the Fund’s fiscal year","page_number":39,"box":{"x":70,"y":82,"width":801,"height":12}},{"id":"e62d365a-5668-4251-8d90-d4932c6a061b","block_type":"box","text":"ended April 30, 2026.","page_number":39,"box":{"x":69,"y":98,"width":156,"height":11}},{"id":"a78e15d1-ce1d-4644-9d4c-ba047f1d1d0d","block_type":"box","text":"Number of Other Accounts Managed","page_number":39,"box":{"x":335,"y":126,"width":211,"height":9}},{"id":"539ece84-3088-49d7-bf0e-468dc7739a79","block_type":"box","text":"and Assets by Account Type","page_number":39,"box":{"x":358,"y":136,"width":165,"height":9}},{"id":"036e30af-3358-408c-bcc1-b817d3d176cb","block_type":"box","text":"Number of Other Accounts and Assets","page_number":39,"box":{"x":645,"y":126,"width":222,"height":7}},{"id":"b71af045-c849-45a1-ac0f-5f8db058f5d9","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":39,"box":{"x":623,"y":136,"width":265,"height":9}},{"id":"8f242f8c-255c-4914-a839-d6198e3d7b95","block_type":"box","text":"Name of Portfolio Manager","page_number":39,"box":{"x":74,"y":179,"width":157,"height":9}},{"id":"aa8e0e50-d734-4b1d-b329-be1b7d46b7cf","block_type":"box","text":"Other","page_number":39,"box":{"x":318,"y":149,"width":32,"height":7}},{"id":"435c1a36-a533-46b5-97e9-123343798b10","block_type":"box","text":"Registered","page_number":39,"box":{"x":303,"y":159,"width":62,"height":8}},{"id":"c37d9b5d-e83a-4586-8e71-77aec4256099","block_type":"box","text":"Investment","page_number":39,"box":{"x":302,"y":169,"width":64,"height":7}},{"id":"2becb563-3e90-4948-9e8f-35d5d6f5e3cb","block_type":"box","text":"Companies","page_number":39,"box":{"x":302,"y":179,"width":64,"height":9}},{"id":"a34eb023-d9a7-4af8-bf82-75851ea14790","block_type":"box","text":"Other Pooled","page_number":39,"box":{"x":402,"y":159,"width":74,"height":7}},{"id":"a26e8597-402d-43d2-8406-d69cd52a9eb2","block_type":"box","text":"Investment","page_number":39,"box":{"x":407,"y":169,"width":65,"height":7}},{"id":"d860921c-852b-4588-88d0-b053ec2b1975","block_type":"box","text":"Vehicles","page_number":39,"box":{"x":415,"y":179,"width":48,"height":7}},{"id":"05a56416-34fc-4e4e-bf6a-9cc8699ef2d9","block_type":"box","text":"Other","page_number":39,"box":{"x":530,"y":169,"width":31,"height":7}},{"id":"e65b8479-6a9f-41f9-be31-8054316f7235","block_type":"box","text":"Accounts","page_number":39,"box":{"x":518,"y":179,"width":55,"height":7}},{"id":"54532a94-3935-4588-93df-f034ff947d82","block_type":"box","text":"Other","page_number":39,"box":{"x":628,"y":149,"width":32,"height":7}},{"id":"fbfe3913-e1e8-42d5-8092-fc684c2f661f","block_type":"box","text":"Registered","page_number":39,"box":{"x":613,"y":159,"width":62,"height":8}},{"id":"60aa1403-8294-4417-b1e9-8aeb8a904107","block_type":"box","text":"Investment","page_number":39,"box":{"x":612,"y":169,"width":64,"height":7}},{"id":"c2476e9f-fff7-4729-9c93-3503ff44c60b","block_type":"box","text":"Companies","page_number":39,"box":{"x":612,"y":179,"width":64,"height":9}},{"id":"8cc08dea-375e-492b-bb75-5df7ed392fe0","block_type":"box","text":"Other Pooled","page_number":39,"box":{"x":705,"y":159,"width":74,"height":7}},{"id":"d2d15244-0d2e-422c-969a-f41e012e368d","block_type":"box","text":"Investment","page_number":39,"box":{"x":710,"y":169,"width":65,"height":7}},{"id":"db67147b-b93a-483a-8727-358b19813661","block_type":"box","text":"Vehicles","page_number":39,"box":{"x":718,"y":179,"width":48,"height":7}},{"id":"a61a0c14-168c-439c-9ebf-2df61772d3c5","block_type":"box","text":"Other","page_number":39,"box":{"x":838,"y":169,"width":32,"height":7}},{"id":"edca8051-7403-4717-af63-8f9b0f109c79","block_type":"box","text":"Accounts","page_number":39,"box":{"x":826,"y":179,"width":55,"height":7}},{"id":"2ae90928-6aae-4788-985d-72469b0a6486","block_type":"box","text":"Rick Rieder 23 30 42 0 5 2","page_number":39,"box":{"x":74,"y":193,"width":783,"height":7}},{"id":"871c4b36-5b50-4edd-9b87-4ca134eab4c6","block_type":"box","text":"$110.63 Billion $52.35 Billion $6.05 Billion $0 $304.66 Million $403.40 Million","page_number":39,"box":{"x":290,"y":205,"width":609,"height":8}},{"id":"39a25350-ecac-438c-a309-36939be0c757","block_type":"box","text":"Russ Koesterich, CFA, JD 9 9 33 0 0 0","page_number":39,"box":{"x":74,"y":218,"width":783,"height":8}},{"id":"b0338dcc-8c3e-4ba5-bcf0-eff1fc7076d6","block_type":"box","text":"$16.93 Billion $23.93 Billion $581.06 Million $0 $0 $0","page_number":39,"box":{"x":294,"y":230,"width":567,"height":8}},{"id":"22b355dc-54e1-4799-b6d1-696e567ed2c5","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":39,"box":{"x":69,"y":264,"width":304,"height":12}},{"id":"d74d1d6c-4211-4784-a80c-b8cd8d74de94","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of April 30, 2026.","page_number":39,"box":{"x":101,"y":287,"width":658,"height":11}},{"id":"a4f8c996-ff93-4cb8-9f93-a30ab3a2ab9f","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":39,"box":{"x":102,"y":310,"width":774,"height":11}},{"id":"c2fd2554-3b81-4b4d-8496-36e1adc0f480","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":39,"box":{"x":70,"y":325,"width":837,"height":11}},{"id":"b75498b9-4ae9-4881-854a-c294c4123211","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":39,"box":{"x":69,"y":340,"width":823,"height":11}},{"id":"689ed332-f625-44a0-9b6d-dedfd1f9d4f7","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":39,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"1e42b371-5142-4c6c-837d-42bd0e18becb","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":39,"box":{"x":70,"y":370,"width":670,"height":12}},{"id":"c8361282-8ef7-4536-a549-026abacc0ddd","block_type":"box","text":"Base Compensation.","page_number":39,"box":{"x":102,"y":393,"width":148,"height":11}},{"id":"e46000d4-9dc7-47a9-a0f2-8914c2595e72","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":39,"box":{"x":257,"y":393,"width":640,"height":11}},{"id":"ad908ba4-05a4-48a8-a2a7-d87f4cb51b6b","block_type":"box","text":"firm.","page_number":39,"box":{"x":68,"y":408,"width":32,"height":9}},{"id":"c1456090-7b0c-4000-97ea-15fe04baa479","block_type":"box","text":"Discretionary Incentive Compensation","page_number":39,"box":{"x":69,"y":438,"width":277,"height":11}},{"id":"5522c3ca-9652-4681-9fd7-c6b92c94190a","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":39,"box":{"x":102,"y":461,"width":792,"height":11}},{"id":"e1cabc07-8772-4153-8a14-6a27ce05ac0c","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":39,"box":{"x":68,"y":476,"width":800,"height":11}},{"id":"d44aa747-5001-4638-8771-2e46dbf21464","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":39,"box":{"x":69,"y":491,"width":777,"height":12}},{"id":"82becd5c-95df-4f32-a480-bd6f1c07ed24","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these","page_number":39,"box":{"x":70,"y":506,"width":817,"height":11}},{"id":"36d5ce1a-62fb-455a-9f25-29d2c76ec55c","block_type":"box","text":"portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against","page_number":39,"box":{"x":70,"y":521,"width":830,"height":12}},{"id":"2db8997e-d386-444d-b608-374446a0ffe0","block_type":"box","text":"which the performance of the Funds or other accounts managed by the portfolio managers are measured. Among","page_number":39,"box":{"x":68,"y":537,"width":809,"height":11}},{"id":"5701eddc-a7b8-4383-847f-e29d6acee344","block_type":"box","text":"other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio","page_number":39,"box":{"x":69,"y":552,"width":819,"height":11}},{"id":"181c1927-6cfe-43a1-8be4-e7acd36b1a0e","block_type":"box","text":"manager’s compensation based on the performance of the Funds and other accounts managed by each portfolio","page_number":39,"box":{"x":69,"y":567,"width":805,"height":11}},{"id":"fe616a13-ac81-4124-b734-0806916394f4","block_type":"box","text":"manager relative to the various benchmarks. Performance is generally assessed over trailing 1-,3-, and 5-year periods","page_number":39,"box":{"x":69,"y":582,"width":839,"height":11}},{"id":"12eea4c1-d37f-4350-85a0-7ae395d539f8","block_type":"box","text":"relative to benchmarks plus an alpha target as well as against peer groups. With respect to these portfolio","page_number":39,"box":{"x":69,"y":597,"width":761,"height":11}},{"id":"6f3c5594-7b47-43de-84c2-91a5775b5d58","block_type":"box","text":"managers, such benchmarks for the Fund and other accounts are S&P 500 Index, FTSE World ex-US Index, ICE BofA","page_number":39,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"b5c09d9d-1618-4d7c-a6b5-4030f9c8823b","block_type":"box","text":"Current 5-Year Treasury Index, FTSE Non-US Dollar World Government Bond Index, MSCI World Net TR Index and MSCI","page_number":39,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"405449fd-1bd3-4907-b76e-276e4fcebc97","block_type":"box","text":"ACWI Minimum Volatility (USD) Index (USD).","page_number":39,"box":{"x":68,"y":643,"width":309,"height":11}},{"id":"5fad23ac-3b03-4829-ab47-1430b81dce34","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":39,"box":{"x":102,"y":665,"width":389,"height":11}},{"id":"5b1ef812-d1ea-4c80-be6c-d886e0837c12","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":39,"box":{"x":499,"y":665,"width":383,"height":11}},{"id":"2855b421-e523-4cf4-9d64-eede5bee1df3","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":39,"box":{"x":70,"y":680,"width":815,"height":12}},{"id":"e686d695-a4a0-4289-b941-e99cb31ea99b","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":39,"box":{"x":68,"y":695,"width":522,"height":11}},{"id":"31e1745a-81f0-45b3-bdbf-77b8ee957699","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":39,"box":{"x":102,"y":718,"width":760,"height":11}},{"id":"c0660513-a3c6-4a19-b136-29975d114a67","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":39,"box":{"x":69,"y":733,"width":795,"height":11}},{"id":"0292309d-0ebd-4cc3-a5a1-7d7b85bba673","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":39,"box":{"x":69,"y":748,"width":805,"height":12}},{"id":"a0bbaf04-aac4-470d-babb-ab0626022160","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":39,"box":{"x":69,"y":763,"width":822,"height":12}},{"id":"785212ff-92a2-448a-93ac-33ab6d0cc49f","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":39,"box":{"x":68,"y":778,"width":839,"height":12}},{"id":"a7365655-f423-4291-b866-c654da06ba1d","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":39,"box":{"x":69,"y":794,"width":802,"height":11}},{"id":"94b19c6c-a889-461c-84ce-a18f1483ea2d","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":39,"box":{"x":70,"y":809,"width":820,"height":11}},{"id":"89cbf23f-b9d2-42a8-a491-2b78874bb5fc","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":39,"box":{"x":70,"y":824,"width":801,"height":11}},{"id":"89e2d503-0cf4-4b38-82ae-5fea824d4dbd","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":39,"box":{"x":70,"y":839,"width":831,"height":11}},{"id":"f9a1a975-75a0-4775-97ed-d1f64c117b9b","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":39,"box":{"x":69,"y":854,"width":479,"height":11}},{"id":"ea4011cc-a8cc-431f-b79c-6c998d3f4378","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":39,"box":{"x":102,"y":877,"width":785,"height":11}},{"id":"11b9a252-6659-40e6-97f2-4f103706cec5","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":39,"box":{"x":68,"y":892,"width":836,"height":11}},{"id":"ffe1a041-bf49-4b31-ac61-2431e9737e97","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":39,"box":{"x":68,"y":907,"width":821,"height":11}},{"id":"b59688ac-048d-4e7a-a6d0-8ae98969f4c1","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"a80cd7fc-86bd-4c7f-8ad3-ecc926a8a4c9","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84aa598e-f88b-4d21-8cb6-3128f97b4a2a","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":40,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"1ff289b7-702f-4663-bc1d-50a331b64490","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":40,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"0b83be79-b07b-41d9-a85b-104d86d2c019","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":40,"box":{"x":69,"y":75,"width":414,"height":11}},{"id":"eb958ab7-4083-446d-9ffa-19a8ad498c99","block_type":"box","text":"Other Compensation Benefits.","page_number":40,"box":{"x":101,"y":98,"width":218,"height":11}},{"id":"e9fb6d14-bdb1-4df6-9519-eb412ce8d6e7","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":40,"box":{"x":327,"y":98,"width":552,"height":11}},{"id":"61387cd7-eb12-42f7-8e43-865815ce9447","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":40,"box":{"x":69,"y":113,"width":582,"height":11}},{"id":"da90979d-ebfa-4e7d-8bc5-5f04a77ef231","block_type":"box","text":"Incentive Savings Plans","page_number":40,"box":{"x":102,"y":135,"width":167,"height":12}},{"id":"d1d83249-2141-4c07-a35f-7561fb8abdaa","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":40,"box":{"x":274,"y":135,"width":614,"height":12}},{"id":"688ead69-ddcd-4a57-8e68-bf2084cfcb96","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":40,"box":{"x":69,"y":151,"width":831,"height":11}},{"id":"2969074b-a86b-4b45-99d6-bf29ef2e4bc6","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":40,"box":{"x":70,"y":166,"width":785,"height":11}},{"id":"0e6f54e7-67e0-4362-9ffd-43d4e7737c22","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":40,"box":{"x":69,"y":180,"width":830,"height":12}},{"id":"7d9440e8-b29e-4674-b4e0-bb186898d580","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":40,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"3ac94218-b6e7-4e6c-b50b-1995e982c3f1","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":40,"box":{"x":69,"y":210,"width":831,"height":12}},{"id":"8b72783e-15ba-41ec-9063-802b17f63115","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":40,"box":{"x":69,"y":226,"width":798,"height":11}},{"id":"fa3d939f-34ad-4a57-ac35-be734f3e380f","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":40,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"0b8ccd32-cacc-4455-b824-8abdd5c0f02d","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":40,"box":{"x":68,"y":256,"width":793,"height":12}},{"id":"758288fd-cab4-4c14-8288-e796cdc8a3be","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":40,"box":{"x":70,"y":271,"width":832,"height":11}},{"id":"09880ed9-c1e4-4aee-b28b-f1a15d926ef9","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":40,"box":{"x":68,"y":286,"width":805,"height":11}},{"id":"666ba47a-758e-41c9-b430-d74a27bed599","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":40,"box":{"x":69,"y":301,"width":808,"height":12}},{"id":"09e967c9-4367-497f-8b67-06fd30d4671d","block_type":"box","text":"participate in these plans.","page_number":40,"box":{"x":70,"y":317,"width":185,"height":11}},{"id":"a7b4d5c6-0d6b-47c7-ae8b-6c30c5dbf72b","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":40,"box":{"x":69,"y":347,"width":268,"height":11}},{"id":"ac3d2e06-0406-405f-b2da-cd8fb4837d90","block_type":"box","text":"As of April 30, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":40,"box":{"x":101,"y":370,"width":733,"height":11}},{"id":"f20ab6ad-3f5b-4ab3-b8f1-849124054cdb","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":40,"box":{"x":69,"y":385,"width":519,"height":11}},{"id":"c6983512-a372-42ac-869d-f257dbe5a9e1","block_type":"box","text":"Portfolio Manager","page_number":40,"box":{"x":69,"y":423,"width":105,"height":9}},{"id":"079ab3cb-6834-4e53-a31f-feb4e93161ab","block_type":"box","text":"Dollar Range of Equity","page_number":40,"box":{"x":757,"y":413,"width":129,"height":9}},{"id":"97eb9e61-b1ed-4c20-bf44-57c3cd7ce43f","block_type":"box","text":"Securities Beneficially Owned","page_number":40,"box":{"x":732,"y":423,"width":173,"height":9}},{"id":"3b7d45ba-9b14-4dd0-92f2-d1702b45ce4b","block_type":"box","text":"1","page_number":40,"box":{"x":906,"y":423,"width":4,"height":4}},{"id":"f5bfffad-0d79-46a7-af79-90809390dd1c","block_type":"box","text":"Rick Rieder . . .","page_number":40,"box":{"x":70,"y":441,"width":102,"height":9}},{"id":"c718cda5-fb18-4feb-9335-c97e3ee19ca6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1 Million","page_number":40,"box":{"x":178,"y":440,"width":696,"height":11}},{"id":"3f0cd167-3291-4f77-aa5d-6184d5615c27","block_type":"box","text":"Russ Koesterich, CFA, JD. . . . . . .","page_number":40,"box":{"x":70,"y":456,"width":232,"height":10}},{"id":"998d628b-1976-443a-8826-a7fa808c36ef","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1 Million","page_number":40,"box":{"x":308,"y":455,"width":566,"height":11}},{"id":"41429beb-d6b5-4e84-ac4b-aca0b9d1b4bc","block_type":"box","text":"1","page_number":40,"box":{"x":69,"y":481,"width":3,"height":3}},{"id":"3e9e5c14-8811-42e6-8d89-933752f67002","block_type":"box","text":"Includes securities attributable to participation in certain deferred compensation and retirement programs.","page_number":40,"box":{"x":94,"y":480,"width":608,"height":9}},{"id":"e649d3d6-8b55-420d-a51b-407c1e6a4914","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":40,"box":{"x":69,"y":509,"width":403,"height":11}},{"id":"174832b8-4593-4159-b56c-ae7210c9c0ce","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":40,"box":{"x":102,"y":532,"width":727,"height":11}},{"id":"b10d1f66-d887-45ff-b898-7930a560fa58","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":40,"box":{"x":70,"y":547,"width":814,"height":11}},{"id":"acb0a7d3-dd7e-4652-8b38-e81b0af554ad","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":40,"box":{"x":70,"y":562,"width":837,"height":11}},{"id":"5641ee68-5082-4529-9fc6-2d5aa1ac64f2","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":40,"box":{"x":70,"y":577,"width":810,"height":11}},{"id":"22aed81c-e67b-4321-969e-3ad14ab4d76c","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":40,"box":{"x":69,"y":592,"width":782,"height":11}},{"id":"a34333ed-e6ef-4935-908e-b8312f2f56c1","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":40,"box":{"x":69,"y":607,"width":830,"height":11}},{"id":"e9cbcec2-1dd5-4560-90b6-d2a3d6b92e12","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":40,"box":{"x":69,"y":623,"width":828,"height":11}},{"id":"f7074244-4f90-4a40-a63d-7198aeb960e7","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":40,"box":{"x":68,"y":637,"width":834,"height":12}},{"id":"54241064-d42c-4953-a894-64ff44245450","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":40,"box":{"x":70,"y":652,"width":777,"height":12}},{"id":"852fdf5c-ee3b-486a-88d9-102671c41278","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":40,"box":{"x":70,"y":668,"width":821,"height":11}},{"id":"1ddcb40d-e114-4960-9349-0e39e5a1fe8a","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":40,"box":{"x":69,"y":683,"width":819,"height":11}},{"id":"6d456770-d23b-4c2f-ab4e-bc5b564d9a12","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":40,"box":{"x":69,"y":698,"width":832,"height":11}},{"id":"690e4dc2-1602-4974-a8e3-569232a96119","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":40,"box":{"x":68,"y":713,"width":804,"height":11}},{"id":"012a077b-74cf-4237-a972-4986717e0ab2","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":40,"box":{"x":69,"y":728,"width":760,"height":11}},{"id":"041c1e5b-9f4a-44ea-a2c0-98e218ab5cd0","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":40,"box":{"x":69,"y":743,"width":834,"height":12}},{"id":"bdb14d5a-ac84-4d3b-b5a4-64d6015f9646","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":40,"box":{"x":69,"y":758,"width":836,"height":12}},{"id":"dd053794-e88c-494c-be65-595a52041394","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":40,"box":{"x":69,"y":773,"width":822,"height":12}},{"id":"ab364413-1ab2-4da6-8b2d-4ddd59f83aa5","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":40,"box":{"x":70,"y":789,"width":835,"height":11}},{"id":"711f592a-7b95-4fb6-a1c3-35b2c2e764dd","block_type":"box","text":"be opposed to the strategy utilized for a fund. It should also be noted that Messrs. Rieder and Koesterich may be","page_number":40,"box":{"x":69,"y":804,"width":809,"height":11}},{"id":"23dc7fee-a840-41f1-a3ca-f64cc7eaa75e","block_type":"box","text":"managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only","page_number":40,"box":{"x":69,"y":819,"width":811,"height":11}},{"id":"8b887ba0-5c8d-4755-8ef0-0f4f9ef7911f","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Rieder and Koesterich may therefore be entitled to receive a portion of","page_number":40,"box":{"x":69,"y":834,"width":826,"height":11}},{"id":"51c006f2-07bb-4971-b8da-5670d38d34fb","block_type":"box","text":"any incentive fees earned on such accounts.","page_number":40,"box":{"x":69,"y":849,"width":316,"height":11}},{"id":"8de712d0-a02e-4de3-8865-672e63a0beba","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":40,"box":{"x":101,"y":872,"width":788,"height":11}},{"id":"62a66c3a-ba67-4077-a0bc-5395a214af95","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":40,"box":{"x":70,"y":887,"width":839,"height":11}},{"id":"d0536c44-26ea-4624-bb2e-09ecfe537f33","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":40,"box":{"x":68,"y":902,"width":823,"height":11}},{"id":"76ed942e-e576-475c-98cc-8405a83ae51c","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a7545ca3-143d-41ac-a7bd-7ef15cc55fd5","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4511d4f-d509-4fee-afab-1ca6542adcbe","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":41,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"fc5e66ad-0976-4199-9709-a6118fa98b69","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":41,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"837f2860-9e6b-4763-ad7e-3156705b6169","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":41,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"15521449-948f-4342-b571-930a1ee3a242","block_type":"box","text":"Accounting Services","page_number":41,"box":{"x":68,"y":105,"width":150,"height":11}},{"id":"0f467312-2431-42e1-b7b2-154a4f47b8d5","block_type":"box","text":"Effective June 14, 2025, JPMorgan Chase Bank, N.A. (“JPM”) serves as the accounting services provider for the","page_number":41,"box":{"x":102,"y":128,"width":803,"height":11}},{"id":"288be222-9885-4729-8031-385da7c5879b","block_type":"box","text":"Fund. Among other services, JPM maintains records of purchases and sales of securities, receipts and","page_number":41,"box":{"x":70,"y":143,"width":732,"height":11}},{"id":"0b537813-a1e7-485d-862b-782a2f456448","block_type":"box","text":"disbursements of cash and other debits and credits; keeps accounting journals and ledgers; records capital share","page_number":41,"box":{"x":69,"y":158,"width":814,"height":11}},{"id":"9f2649eb-f774-4985-acee-a2948841e7a9","block_type":"box","text":"transactions; calculates expense caps, waivers and recoupments (if any); computes the Fund’s net income and","page_number":41,"box":{"x":68,"y":173,"width":794,"height":11}},{"id":"99c2a4bd-42ba-4aaf-ab9e-ad77e17de8ec","block_type":"box","text":"capital gains and dividends payable; calculates and reports net asset value; works with independent pricing sources;","page_number":41,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"0efdcebc-dfd5-4b2d-88a6-e6c99db7c938","block_type":"box","text":"reconciles securities and cash positions with the Fund’s custodian; prepares certain financial statements, notices","page_number":41,"box":{"x":69,"y":203,"width":814,"height":11}},{"id":"c4463a00-efdd-422a-8b2a-e4d1046f9127","block_type":"box","text":"and reports; and prepares certain tax reports. In connection with its accounting services, JPM also provides certain","page_number":41,"box":{"x":69,"y":219,"width":826,"height":11}},{"id":"bd652423-2a8d-4b18-b28f-c4a2baf674df","block_type":"box","text":"administrative services. Prior to June 14, 2025, State Street Bank and Trust Company (“State Street”) served as the","page_number":41,"box":{"x":69,"y":234,"width":836,"height":11}},{"id":"748e8d71-d4c0-46b9-810b-10421d6f677f","block_type":"box","text":"accounting services provider for the Fund.","page_number":41,"box":{"x":69,"y":249,"width":297,"height":11}},{"id":"58d6ff7b-76ca-49c2-85c4-43e72bbea3e7","block_type":"box","text":"The table below shows the amounts paid by the Fund to JPM, State Street and the Manager for accounting","page_number":41,"box":{"x":101,"y":271,"width":760,"height":12}},{"id":"dc0504de-c5fe-41b4-abdf-28a195fcd697","block_type":"box","text":"services for the periods indicated:","page_number":41,"box":{"x":69,"y":286,"width":242,"height":11}},{"id":"70388a88-0041-45a8-98fb-f4846b0d3be9","block_type":"box","text":"Fees Paid to JPM Fees Paid to State Street Fees Paid to the Manager","page_number":41,"box":{"x":450,"y":315,"width":459,"height":9}},{"id":"3aa92b91-cc89-434b-a3a2-a15e870e7fb6","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . . . . . . . . . . . $893,703 $ 172,612 $0","page_number":41,"box":{"x":70,"y":332,"width":773,"height":11}},{"id":"a8a70b92-58e4-4284-be06-14eaae5d9e1e","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . . . . . . . . . . . $ 0 $1,431,776 $0","page_number":41,"box":{"x":70,"y":347,"width":773,"height":12}},{"id":"8e66ad20-1d55-4efa-b87c-44034fdbe45a","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . . . . . . . . . $ 0 $1,357,871 $0","page_number":41,"box":{"x":70,"y":362,"width":773,"height":12}},{"id":"78b51d78-093c-4877-8aa1-4376c3178bc8","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":41,"box":{"x":68,"y":394,"width":432,"height":11}},{"id":"a88a9a1f-f1f5-4bd8-a16f-98f82aeb9eb1","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road","page_number":41,"box":{"x":102,"y":417,"width":760,"height":11}},{"id":"447589cc-4367-4382-bc0c-fe595db5a2a1","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the Fund.","page_number":41,"box":{"x":68,"y":432,"width":771,"height":11}},{"id":"13d73351-ac23-4950-afdb-84f0d30a0c5e","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides certain shareholder","page_number":41,"box":{"x":102,"y":455,"width":762,"height":11}},{"id":"8b36aa4d-9e63-419e-8f11-5106b1f40ded","block_type":"box","text":"liaison services in connection with the Fund’s investor service center. The Fund reimburses the Manager for its costs","page_number":41,"box":{"x":70,"y":470,"width":834,"height":11}},{"id":"51a86bd8-f48e-4284-a278-e76e1d33ae77","block_type":"box","text":"in maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses,","page_number":41,"box":{"x":70,"y":485,"width":823,"height":11}},{"id":"eec01810-4267-45fe-8b89-4bddbf72fc17","block_type":"box","text":"and other out-of-pocket expenses.","page_number":41,"box":{"x":69,"y":500,"width":240,"height":11}},{"id":"1a2ed645-8582-4fab-a98f-b6fa54a48cac","block_type":"box","text":"For the periods shown below, the Fund reimbursed BlackRock for shareholder liaison services pursuant to such","page_number":41,"box":{"x":102,"y":523,"width":792,"height":11}},{"id":"3f3c8d48-a3c7-4b35-8a12-6ba9d14ad292","block_type":"box","text":"agreement in the amounts set forth below:","page_number":41,"box":{"x":69,"y":538,"width":304,"height":11}},{"id":"63bc2b08-20c2-4ba3-ad4d-c331760aad42","block_type":"box","text":"Fees Paid to the Manager Fees Waived by the Manager","page_number":41,"box":{"x":561,"y":566,"width":348,"height":9}},{"id":"597008c0-c1b1-4650-ad25-1c1cc00d70a5","block_type":"box","text":"Fiscal Year Ended April 30, 2026","page_number":41,"box":{"x":70,"y":584,"width":232,"height":11}},{"id":"31ade8eb-9e21-45f3-9844-b92d7b0d60c2","block_type":"box","text":"............................","page_number":41,"box":{"x":307,"y":591,"width":222,"height":2}},{"id":"7a019a02-6c7a-43ed-a78c-9e2c82ac7c71","block_type":"box","text":"$182,754 $0","page_number":41,"box":{"x":600,"y":583,"width":234,"height":11}},{"id":"a11269ce-9d08-49b1-a09e-68555027b848","block_type":"box","text":"Fiscal Year Ended April 30, 2025","page_number":41,"box":{"x":70,"y":599,"width":232,"height":11}},{"id":"9a42c5a6-3eb1-49a0-b299-3426387231b2","block_type":"box","text":"............................","page_number":41,"box":{"x":307,"y":606,"width":222,"height":2}},{"id":"a0bfb4e6-c253-4f9c-a3cf-eaf21eb84380","block_type":"box","text":"$351,852 $0","page_number":41,"box":{"x":600,"y":598,"width":234,"height":11}},{"id":"3c15a4d2-9a1b-4f36-8e10-b365f80480fc","block_type":"box","text":"Fiscal Year Ended April 30, 2024","page_number":41,"box":{"x":70,"y":614,"width":232,"height":11}},{"id":"2deb5164-8a54-46f8-9c22-d4a13f90aac3","block_type":"box","text":"............................","page_number":41,"box":{"x":307,"y":622,"width":222,"height":1}},{"id":"38a4fdfb-1aa6-4a98-a386-7fb3611c8b1d","block_type":"box","text":"$278,610 $0","page_number":41,"box":{"x":600,"y":613,"width":234,"height":12}},{"id":"3ef8ce84-12e8-4843-89a6-a3590eb7a1dd","block_type":"box","text":"Organization and Management of Wholly-Owned Cayman Subsidiary","page_number":41,"box":{"x":69,"y":646,"width":491,"height":11}},{"id":"04e00d34-3923-42c7-bed6-f98425803c0f","block_type":"box","text":"The Fund intends to gain exposure to commodity markets by investing up to 25% of its total assets in the","page_number":41,"box":{"x":101,"y":668,"width":751,"height":12}},{"id":"daa432af-dcad-4939-a915-aac7b4180fbb","block_type":"box","text":"Cayman Subsidiary. The Cayman Subsidiary invests primarily in commodity-related instruments.","page_number":41,"box":{"x":69,"y":683,"width":680,"height":12}},{"id":"23a27f92-9094-4c97-85ed-ef6dec390c4c","block_type":"box","text":"The Cayman Subsidiary is a company organized under the laws of the Cayman Islands, whose registered office","page_number":41,"box":{"x":101,"y":706,"width":791,"height":11}},{"id":"f157fa80-0dbb-480f-b957-942b4fd4aca4","block_type":"box","text":"is located at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland House, Grand Cayman KYI","page_number":41,"box":{"x":70,"y":721,"width":800,"height":11}},{"id":"af530f90-704e-4af6-8630-76c6a3031b9b","block_type":"box","text":"1104, Cayman Islands. The Cayman Subsidiary’s affairs are overseen by a board of directors, which is comprised of","page_number":41,"box":{"x":70,"y":736,"width":831,"height":11}},{"id":"e79e21fd-a9b6-4f72-886c-4b71672069ba","block_type":"box","text":"John M. Perlowski and Trent Walker.","page_number":41,"box":{"x":69,"y":752,"width":254,"height":8}},{"id":"57bddf7b-0a45-4605-a015-d5f91c0ca114","block_type":"box","text":"The Manager provides investment management and administrative services to the Cayman Subsidiary. The","page_number":41,"box":{"x":101,"y":774,"width":763,"height":11}},{"id":"46ac9f78-4a85-4a7e-bbf0-3ab6a79e7d8c","block_type":"box","text":"Manager does not receive separate compensation from the Cayman Subsidiary for providing it with investment","page_number":41,"box":{"x":70,"y":789,"width":787,"height":11}},{"id":"324689f1-9925-440a-9cfb-9aa955d51c3d","block_type":"box","text":"advisory or administrative services. However, the Fund pays the Manager based on the Fund’s assets, including the","page_number":41,"box":{"x":69,"y":805,"width":826,"height":11}},{"id":"1bf23c57-7cb5-40d4-bfc3-b16be973da7d","block_type":"box","text":"assets invested in the Cayman Subsidiary. The Cayman Subsidiary entered into contracts for the provision of custody","page_number":41,"box":{"x":69,"y":819,"width":837,"height":12}},{"id":"8964e847-92a2-47ba-a86c-f869009fe7b3","block_type":"box","text":"and audit services with the same service providers that provide those services to the Fund.","page_number":41,"box":{"x":69,"y":835,"width":653,"height":11}},{"id":"f02184ff-769c-44c1-9496-1ea78afcf8c1","block_type":"box","text":"The Cayman Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all","page_number":41,"box":{"x":101,"y":857,"width":779,"height":12}},{"id":"a08fe703-2519-4a34-91ab-e6fd74dd4bc2","block_type":"box","text":"material respects, as the policies and procedures adopted by the Fund. As a result, the Manager, in managing the","page_number":41,"box":{"x":69,"y":873,"width":813,"height":11}},{"id":"30a47322-7e7c-4a58-9fef-6d58e125d0a1","block_type":"box","text":"Cayman Subsidiary’s portfolio, is subject to the same investment policies and restrictions that apply to the","page_number":41,"box":{"x":69,"y":887,"width":764,"height":12}},{"id":"651620cf-1eb4-4f73-98d7-2a539627cf2c","block_type":"box","text":"management of the Fund, and, in particular, to the requirements relating to portfolio leverage, liquidity, brokerage,","page_number":41,"box":{"x":69,"y":903,"width":813,"height":11}},{"id":"3ca5bebc-4d06-4ca3-a7e2-2e7a9130c630","block_type":"box","text":"I-25","page_number":41,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5d2bc374-afc0-47b3-94d8-33a56a57276c","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0bdcce8d-37fe-4c88-aab6-413cf0f6d984","block_type":"box","text":"and the timing and method of the valuation of the Cayman Subsidiary’s portfolio investments and shares of the","page_number":42,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"6cfd1785-47d1-426c-90cf-c48d7b7112dc","block_type":"box","text":"Cayman Subsidiary. These policies and restrictions are described elsewhere in detail in this SAI. The Fund and the","page_number":42,"box":{"x":69,"y":60,"width":815,"height":11}},{"id":"07096606-974e-44d9-a7ef-5149230382fa","block_type":"box","text":"Cayman Subsidiary test for compliance with certain investment restrictions on a consolidated basis.","page_number":42,"box":{"x":69,"y":75,"width":714,"height":11}},{"id":"602c8053-5674-448f-adeb-3f9b678eac37","block_type":"box","text":"Credit Agreement","page_number":42,"box":{"x":69,"y":105,"width":129,"height":11}},{"id":"8d4e7e86-04a3-49f4-bd03-abff9365dd58","block_type":"box","text":"The Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”),","page_number":42,"box":{"x":101,"y":128,"width":765,"height":11}},{"id":"08d3ed08-b23a-46f3-b23d-ef8b002057c0","block_type":"box","text":"is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on","page_number":42,"box":{"x":70,"y":142,"width":748,"height":12}},{"id":"e02fb76d-7780-462e-a211-665d4147c512","block_type":"box","text":"April 8, 2027 unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated","page_number":42,"box":{"x":68,"y":158,"width":818,"height":11}},{"id":"086d4318-3d5a-4bbd-af62-4c8e5970da29","block_type":"box","text":"for certain Participating Funds, the Participating Funds, including the Fund, can borrow up to an aggregate","page_number":42,"box":{"x":68,"y":173,"width":757,"height":11}},{"id":"32d7e010-e7cf-4b9c-ad91-6bb9c87f022f","block_type":"box","text":"commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as","page_number":42,"box":{"x":69,"y":188,"width":801,"height":12}},{"id":"1c117eae-404a-4d01-bbc6-1ec2d2986f48","block_type":"box","text":"specified in the agreement. The Fund may borrow under the Credit Agreement to meet shareholder redemptions and","page_number":42,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"498cdb53-941d-4296-83c6-e51779788f6a","block_type":"box","text":"for other lawful purposes. However, the Fund may not borrow under the Credit Agreement for leverage. The Fund may","page_number":42,"box":{"x":68,"y":218,"width":833,"height":12}},{"id":"aeca22e7-8404-42eb-9671-01a194b25a2e","block_type":"box","text":"borrow up to the maximum amount allowable under the Fund’s current Prospectuses and SAI, subject to various","page_number":42,"box":{"x":69,"y":234,"width":799,"height":11}},{"id":"c33b2ce3-7aa8-4d46-899e-fcd9c835474a","block_type":"box","text":"other legal, regulatory or contractual limits. Borrowing results in interest expense and other fees and expenses for","page_number":42,"box":{"x":69,"y":249,"width":816,"height":11}},{"id":"db2471ed-9e57-44b0-88e2-ac2918d1257e","block_type":"box","text":"the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the Fund’s return. The Fund","page_number":42,"box":{"x":68,"y":264,"width":836,"height":11}},{"id":"c987a82d-4d74-4c1f-b790-c62a730f9d4e","block_type":"box","text":"is charged its pro rata share of upfront fees and commitment fees on the aggregate commitment amount based on","page_number":42,"box":{"x":70,"y":279,"width":820,"height":11}},{"id":"90da1722-eeff-4eb0-a3ff-bec880b6910e","block_type":"box","text":"its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund is charged interest at a variable rate.","page_number":42,"box":{"x":70,"y":294,"width":827,"height":11}},{"id":"70b7520c-999c-44c9-90ba-c8f546a0b717","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":42,"box":{"x":68,"y":324,"width":491,"height":11}},{"id":"795881e8-6e35-4510-90e7-8d8809da6572","block_type":"box","text":"The Fund has entered into a distribution agreement with BlackRock Investments, LLC (“BRIL,” or the","page_number":42,"box":{"x":101,"y":347,"width":715,"height":11}},{"id":"e4352c5c-129f-49b9-b664-8b476c01d5e8","block_type":"box","text":"“Distributor”) under which BRIL, as agent, offers shares of the Fund on a continuous basis. BRIL has agreed to use","page_number":42,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"117ec1a6-6046-43d1-86b1-67926b5aa85d","block_type":"box","text":"appropriate efforts to effect sales of the shares, but it is not obligated to sell any particular amount of shares.","page_number":42,"box":{"x":69,"y":377,"width":791,"height":12}},{"id":"35a2dfcf-9f6a-4e40-a856-ec4cd5ebcdaa","block_type":"box","text":"BRIL’s principal business address is 50 Hudson Yards, New York, New York 10001. BRIL is an affiliate of BlackRock.","page_number":42,"box":{"x":70,"y":392,"width":831,"height":11}},{"id":"8bbdb801-c8aa-458b-86e1-66822136ee3d","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":42,"box":{"x":102,"y":415,"width":773,"height":11}},{"id":"48d47085-43ed-4fc6-8631-9f93b4da8a81","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“Affiliates”) for the periods indicated.","page_number":42,"box":{"x":69,"y":430,"width":824,"height":11}},{"id":"fc953578-25a6-49d5-9d64-cb79a1649d77","block_type":"box","text":"BRIL, an affiliate of the Manager, acts as the Fund’s sole distributor. Institutional Shares are not subject to a sales","page_number":42,"box":{"x":70,"y":445,"width":820,"height":12}},{"id":"d68fbcdd-1bcc-443f-bea9-20d57d33733d","block_type":"box","text":"charge.","page_number":42,"box":{"x":69,"y":461,"width":51,"height":11}},{"id":"d590ce6d-f2a4-4fbf-b308-4f499e5274fa","block_type":"box","text":"Investor A Shares","page_number":42,"box":{"x":645,"y":489,"width":102,"height":7}},{"id":"6a7617be-d88a-4895-a22f-bd23b20924d6","block_type":"box","text":"Gross Sales","page_number":42,"box":{"x":485,"y":515,"width":68,"height":7}},{"id":"07fa0b7b-4a20-4c70-95d8-d59e01b19636","block_type":"box","text":"Charges","page_number":42,"box":{"x":496,"y":525,"width":47,"height":8}},{"id":"5d421f38-ff6f-40a0-a1b6-ffeff2b5f284","block_type":"box","text":"Collected","page_number":42,"box":{"x":492,"y":535,"width":54,"height":7}},{"id":"d9c1c15f-1b88-43c2-ad86-dd39a12598a8","block_type":"box","text":"Sales Charges","page_number":42,"box":{"x":585,"y":515,"width":84,"height":8}},{"id":"9ad26c3b-22f2-4267-ae20-5876d0c30ec7","block_type":"box","text":"Retained by","page_number":42,"box":{"x":593,"y":525,"width":69,"height":8}},{"id":"d802b111-bd83-4b2a-9a2c-a2495c6c1129","block_type":"box","text":"BRIL","page_number":42,"box":{"x":614,"y":535,"width":27,"height":7}},{"id":"2b74b6d1-d4c5-490d-98e6-10b032907a5f","block_type":"box","text":"Sales Charges","page_number":42,"box":{"x":699,"y":515,"width":83,"height":8}},{"id":"39be68e8-2628-44ca-af8c-8e5e56dfa2b9","block_type":"box","text":"Paid to","page_number":42,"box":{"x":721,"y":525,"width":40,"height":7}},{"id":"9b0c3a46-c123-4b7c-b7f3-b80a6b850131","block_type":"box","text":"Affiliates","page_number":42,"box":{"x":715,"y":535,"width":51,"height":7}},{"id":"47d1ec86-01e3-4a56-8896-9f8fd504c0fc","block_type":"box","text":"CDSCs Received","page_number":42,"box":{"x":812,"y":504,"width":97,"height":8}},{"id":"0f437711-f68f-4d03-a63e-584c0e6b21ea","block_type":"box","text":"on Redemption","page_number":42,"box":{"x":817,"y":515,"width":87,"height":8}},{"id":"8ec6b8a9-d8d7-418e-9000-beb6e9f63761","block_type":"box","text":"of Load-Waived","page_number":42,"box":{"x":817,"y":525,"width":87,"height":7}},{"id":"21ca8a33-c6ee-4735-9228-5eee9477b90c","block_type":"box","text":"Shares","page_number":42,"box":{"x":841,"y":535,"width":39,"height":7}},{"id":"aba7b188-ed67-49df-b2d5-a97d7ecb1185","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . . . . . . . . . . . . . . . $791,705 $50,769 $50,769 $53,178","page_number":42,"box":{"x":70,"y":552,"width":822,"height":11}},{"id":"4083e193-5230-48b6-8444-e8c83cc06eff","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . . . . . . . . . . . . . . . $749,532 $47,274 $47,274 $29,616","page_number":42,"box":{"x":70,"y":567,"width":822,"height":11}},{"id":"5ef7d796-6fb4-4dcc-8cf6-be0545f0c644","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . . . . . . . . . . . . . $785,199 $48,276 $48,276 $83,202","page_number":42,"box":{"x":70,"y":582,"width":822,"height":12}},{"id":"36ff4903-51f6-4b42-b3d3-265f6019e5fc","block_type":"box","text":"Investor C Shares","page_number":42,"box":{"x":760,"y":612,"width":103,"height":7}},{"id":"60d4497f-7bd3-45ce-8a75-6252c888a79c","block_type":"box","text":"CDSCs Received","page_number":42,"box":{"x":713,"y":628,"width":97,"height":7}},{"id":"acba2b2f-318f-4539-aa7d-4bfc23af8f61","block_type":"box","text":"by BRIL","page_number":42,"box":{"x":740,"y":638,"width":44,"height":9}},{"id":"8dc2eeb5-89b5-4ed0-9412-53e254065883","block_type":"box","text":"CDSCs Paid","page_number":42,"box":{"x":840,"y":628,"width":69,"height":7}},{"id":"fc7684e1-ff4a-408a-a7ad-161386a8c34f","block_type":"box","text":"to Affiliates","page_number":42,"box":{"x":841,"y":638,"width":68,"height":7}},{"id":"b5a2e5e7-1c2e-4fd2-a742-03c4694a3b71","block_type":"box","text":"Fiscal Year Ended April 30, 2026. . . . . . . . . . .","page_number":42,"box":{"x":70,"y":656,"width":319,"height":11}},{"id":"98b142eb-5a42-4610-a04c-8829f5ab641b","block_type":"box","text":"....................................","page_number":42,"box":{"x":395,"y":663,"width":287,"height":2}},{"id":"39844aae-6ddb-488e-a157-3113534a1068","block_type":"box","text":"$18,550 $18,550","page_number":42,"box":{"x":731,"y":655,"width":175,"height":11}},{"id":"fbcc22d9-d2e6-47da-8f33-eef5d24921d7","block_type":"box","text":"Fiscal Year Ended April 30, 2025. . . . . . . . . . .","page_number":42,"box":{"x":70,"y":671,"width":319,"height":11}},{"id":"ba4d7522-4473-47fa-aa51-15cfe3c784f4","block_type":"box","text":"....................................","page_number":42,"box":{"x":395,"y":678,"width":287,"height":2}},{"id":"12c13ad8-9384-4fc8-b032-bd68ea961636","block_type":"box","text":"$18,021 $18,021","page_number":42,"box":{"x":731,"y":670,"width":175,"height":11}},{"id":"b0a6cb47-2b77-4c54-9002-03d3b54f00b6","block_type":"box","text":"Fiscal Year Ended April 30, 2024. . . . . . . . . . .","page_number":42,"box":{"x":70,"y":686,"width":319,"height":11}},{"id":"8cc687b1-59b0-43a0-8b19-5985cd8a0f22","block_type":"box","text":"....................................","page_number":42,"box":{"x":395,"y":693,"width":287,"height":2}},{"id":"8ec386a4-ad14-4604-80e7-58ac30be2f78","block_type":"box","text":"$23,646 $23,646","page_number":42,"box":{"x":731,"y":685,"width":175,"height":11}},{"id":"c2933d36-8863-417d-b80d-272e5ccca002","block_type":"box","text":"The table below provides information for the fiscal year ended April 30, 2026 about the 12b-1 fees the Fund paid","page_number":42,"box":{"x":101,"y":710,"width":807,"height":11}},{"id":"b0f92a3a-51c8-4859-ad6e-7e38a9fc931f","block_type":"box","text":"to BRIL under the the Fund’s 12b-1 plans. A portion of the fees collected by BRIL were paid to affiliates for providing","page_number":42,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"c42dd897-b63c-4924-8547-53b644a618ff","block_type":"box","text":"shareholder servicing activities for Investor A shares and for providing shareholder servicing and distribution-related","page_number":42,"box":{"x":69,"y":740,"width":824,"height":11}},{"id":"e3c7967b-baed-489a-99f5-5e645e5dbaff","block_type":"box","text":"activities and services for Investor C and Class R Shares.","page_number":42,"box":{"x":69,"y":755,"width":409,"height":9}},{"id":"46946d6e-584a-4793-8875-6a4e0e5c52b4","block_type":"box","text":"Class Name","page_number":42,"box":{"x":69,"y":784,"width":68,"height":7}},{"id":"9852a613-6d72-4b31-a3c5-a27af34bceb2","block_type":"box","text":"Fees Paid to BRIL","page_number":42,"box":{"x":806,"y":784,"width":103,"height":7}},{"id":"53960eca-1906-4158-b9a3-72444832d516","block_type":"box","text":"Investor A Shares .","page_number":42,"box":{"x":70,"y":801,"width":134,"height":9}},{"id":"003b3b25-4699-47c8-a7b2-72d744e32634","block_type":"box","text":"......................................................................","page_number":42,"box":{"x":210,"y":809,"width":564,"height":1}},{"id":"0f624f01-ded4-48d6-adad-92e5b5f11f23","block_type":"box","text":"$21,178,661","page_number":42,"box":{"x":809,"y":801,"width":96,"height":11}},{"id":"203b96b2-cc6e-4d6b-a2c6-7e5ca58a97d8","block_type":"box","text":"Investor C Shares . . .","page_number":42,"box":{"x":70,"y":816,"width":150,"height":9}},{"id":"75060340-7696-46ec-889a-0405a978befc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,","page_number":42,"box":{"x":226,"y":816,"width":615,"height":11}},{"id":"c31a1929-04c2-4332-8039-df56e6dc9386","block_type":"box","text":"750,339","page_number":42,"box":{"x":844,"y":816,"width":61,"height":11}},{"id":"90f65a88-5280-40f0-8ef9-ba18466a9fdd","block_type":"box","text":"Class R Shares","page_number":42,"box":{"x":69,"y":832,"width":109,"height":8}},{"id":"70d80eaa-cf82-4644-a0b3-d72eb6a36380","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,","page_number":42,"box":{"x":185,"y":831,"width":656,"height":11}},{"id":"f4b9d41b-6cd0-4f39-a7d9-7539ea889837","block_type":"box","text":"367,168","page_number":42,"box":{"x":843,"y":832,"width":63,"height":10}},{"id":"c9325803-100e-4589-b0cc-8a2df4895721","block_type":"box","text":"I-26","page_number":42,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"44a1c43a-75f2-4886-ad2a-eab113879d6f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85e785d2-1157-4ae5-94d4-5851a145166e","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":43,"box":{"x":68,"y":45,"width":318,"height":11}},{"id":"d0a17bf1-d856-4ce5-80ad-42d6c019c6ca","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund based on the","page_number":43,"box":{"x":101,"y":67,"width":790,"height":12}},{"id":"b1368100-14be-4c1f-95d0-f77f5ff81924","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and number of Investor A Shares outstanding as of April 30, 2026","page_number":43,"box":{"x":68,"y":82,"width":831,"height":12}},{"id":"3871bf0c-3e93-4232-80bd-49b2678e131b","block_type":"box","text":"follows:","page_number":43,"box":{"x":68,"y":98,"width":53,"height":9}},{"id":"b384b4b9-fb7f-44e7-8e1b-5b9f6055df26","block_type":"box","text":"Investor","page_number":43,"box":{"x":826,"y":126,"width":46,"height":7}},{"id":"e530f384-9364-462c-8865-fcf87aed9d3d","block_type":"box","text":"A Shares","page_number":43,"box":{"x":822,"y":136,"width":52,"height":7}},{"id":"9ae2975b-66de-46e2-a465-4aa5479e1fd9","block_type":"box","text":"Net Assets . . .","page_number":43,"box":{"x":70,"y":154,"width":100,"height":9}},{"id":"2c631ed2-992e-4fad-acee-18d250d19cb9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,591,","page_number":43,"box":{"x":176,"y":153,"width":669,"height":11}},{"id":"2992d2c0-a413-43f0-8087-f4f66304db82","block_type":"box","text":"132,749","page_number":43,"box":{"x":847,"y":154,"width":62,"height":10}},{"id":"b6b03fae-0942-44d9-a29a-3a1db25d95bc","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . .","page_number":43,"box":{"x":70,"y":169,"width":320,"height":11}},{"id":"243bb549-94f3-486b-a6b5-669dea3bf167","block_type":"box","text":".............................................","page_number":43,"box":{"x":396,"y":176,"width":361,"height":2}},{"id":"db662538-a16c-4d58-8198-1593f20288ed","block_type":"box","text":"408,823,773","page_number":43,"box":{"x":812,"y":169,"width":97,"height":10}},{"id":"91324fdd-60fc-42f3-b6f8-04be1ac89ed9","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":43,"box":{"x":70,"y":184,"width":571,"height":11}},{"id":"02dc45ae-901f-41c3-8219-ba0c34654c96","block_type":"box","text":"..............","page_number":43,"box":{"x":649,"y":191,"width":108,"height":2}},{"id":"f85ed42b-40fa-4786-a3de-9f8160a837c8","block_type":"box","text":"$21.01","page_number":43,"box":{"x":857,"y":183,"width":52,"height":11}},{"id":"5b772fbe-b4fb-4ceb-95f7-802b78665749","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":43,"box":{"x":69,"y":199,"width":534,"height":11}},{"id":"c8e14cd5-77d0-4c9c-a4fd-acbd4dc09926","block_type":"box","text":"1","page_number":43,"box":{"x":604,"y":199,"width":4,"height":5}},{"id":"66ecce0f-64d6-4ce6-91be-5b5a97e670f2","block_type":"box","text":". . . . . . . . . . . . . . . . . . $1.16","page_number":43,"box":{"x":616,"y":198,"width":293,"height":11}},{"id":"d42a31b7-f154-44e6-a429-6fecfb9f24ac","block_type":"box","text":"Offering Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":43,"box":{"x":69,"y":218,"width":687,"height":12}},{"id":"790c637d-05a8-4aeb-b0ee-3ccaf4f6c505","block_type":"box","text":"$22.17","page_number":43,"box":{"x":857,"y":218,"width":51,"height":10}},{"id":"07384132-5170-4f45-bd4a-157168798366","block_type":"box","text":"1","page_number":43,"box":{"x":69,"y":251,"width":3,"height":3}},{"id":"2fbb782d-018b-494e-a1b1-68a67baf1b10","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":43,"box":{"x":94,"y":251,"width":541,"height":9}},{"id":"7c6701b1-dcde-4f97-be33-f52a1e953bcc","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":43,"box":{"x":101,"y":271,"width":796,"height":12}},{"id":"da896a20-3bad-438f-ab50-d550c8023144","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":43,"box":{"x":69,"y":286,"width":833,"height":12}},{"id":"ab0292d7-22df-49d4-a510-2c399b1926c8","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":43,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"a1156a8f-c389-4fae-a418-d3a06ed82d66","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this Statement of Additional Information.","page_number":43,"box":{"x":69,"y":317,"width":607,"height":11}},{"id":"e632b82d-3674-4085-9537-988bc7eefb25","block_type":"box","text":"The Cayman Subsidiary is subject to the same valuation policies as the Fund as described in “Pricing of Shares”","page_number":43,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"839b374a-0abd-488a-8b2c-32ee99c9dbe0","block_type":"box","text":"in Part II of this Statement of Additional Information. The Fund’s investment in the Cayman Subsidiary is valued","page_number":43,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"1518688f-1b47-4ee8-8574-d224749661b7","block_type":"box","text":"based on the value of the Cayman Subsidiary’s portfolio investments. The Cayman Subsidiary prices its portfolio","page_number":43,"box":{"x":69,"y":370,"width":805,"height":11}},{"id":"db2e3381-5f75-4c0f-9f42-d1b94ab82fe4","block_type":"box","text":"investments pursuant to the same pricing and valuation methodologies and procedures used by the Fund, which","page_number":43,"box":{"x":70,"y":385,"width":798,"height":11}},{"id":"5b35444f-f0e0-42a4-8fc8-5e901944675e","block_type":"box","text":"require, among other things, that each of the Cayman Subsidiary’s portfolio investments be marked-to-market (that","page_number":43,"box":{"x":69,"y":400,"width":821,"height":11}},{"id":"8234a471-7d7f-440c-8abd-fd11be8aba6b","block_type":"box","text":"is, the value on the Cayman Subsidiary’s books changes) each business day to reflect changes in the market value","page_number":43,"box":{"x":70,"y":415,"width":821,"height":11}},{"id":"6dd54d9b-6f22-4dc8-9ccb-9fd9b9e62f98","block_type":"box","text":"of the investment.","page_number":43,"box":{"x":69,"y":430,"width":128,"height":9}},{"id":"f4129dee-95c6-4adc-be00-8ea3cf2dad7e","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":43,"box":{"x":68,"y":460,"width":302,"height":12}},{"id":"97e98d5b-4c07-46fb-951e-182af9e92d36","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":43,"box":{"x":102,"y":483,"width":609,"height":11}},{"id":"c6b05a9e-047c-4123-96b8-3aec4e21d17a","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, for the","page_number":43,"box":{"x":102,"y":506,"width":800,"height":11}},{"id":"3b154a9c-7e94-4fc1-8db9-ce354122cfbc","block_type":"box","text":"periods shown is set forth in the following table:","page_number":43,"box":{"x":70,"y":521,"width":342,"height":11}},{"id":"6eed271c-a5d3-4f1d-a06a-5f86ff4bf31a","block_type":"box","text":"Aggregate Brokerage","page_number":43,"box":{"x":613,"y":549,"width":125,"height":9}},{"id":"7b7749ae-4964-41f3-b14d-5474a4526acd","block_type":"box","text":"Commissions Paid","page_number":43,"box":{"x":623,"y":559,"width":106,"height":7}},{"id":"f065586b-ea57-49c3-a5c0-248cbb1f5738","block_type":"box","text":"Brokerage Commissions","page_number":43,"box":{"x":769,"y":549,"width":140,"height":9}},{"id":"3ced3267-212f-4ff6-b41d-ce3b3e8059dc","block_type":"box","text":"Paid to Affiliates","page_number":43,"box":{"x":791,"y":559,"width":96,"height":7}},{"id":"30f8abf0-4550-4568-b745-96c3ed22e94c","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,350,658 $0","page_number":43,"box":{"x":70,"y":576,"width":778,"height":12}},{"id":"eb8e28ea-fab1-4f99-a608-2aac3f9cb9d2","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,653,442 $0","page_number":43,"box":{"x":70,"y":591,"width":778,"height":12}},{"id":"cc7518ab-0e30-45fa-8b05-751fe1204289","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,100,358 $0","page_number":43,"box":{"x":70,"y":606,"width":778,"height":12}},{"id":"04b36a9f-7a74-4703-806c-b5e5116b993c","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":43,"box":{"x":101,"y":631,"width":770,"height":11}},{"id":"4722faf0-5054-4564-9092-aa6b1aff1cf4","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":43,"box":{"x":69,"y":646,"width":814,"height":11}},{"id":"02eab14d-652a-48be-8ce4-c054f94bdcda","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended April 30, 2026. The provision of","page_number":43,"box":{"x":68,"y":661,"width":831,"height":11}},{"id":"2f5f3a65-69bf-4c71-bf44-700703d921d0","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":43,"box":{"x":69,"y":676,"width":822,"height":12}},{"id":"da923f17-6558-4852-b5cf-65c65c6e4be5","block_type":"box","text":"with such brokers.","page_number":43,"box":{"x":68,"y":692,"width":130,"height":9}},{"id":"7e8a4923-f882-48fd-80e7-97dc58497940","block_type":"box","text":"Amount of Commissions","page_number":43,"box":{"x":357,"y":720,"width":141,"height":7}},{"id":"78c32f4e-b814-49ed-a2d6-531e9e233e22","block_type":"box","text":"Paid to Brokers for","page_number":43,"box":{"x":374,"y":730,"width":109,"height":7}},{"id":"16be2a10-4a31-44df-ae01-3c53c6838da2","block_type":"box","text":"Providing 28(e) Eligible Research Services","page_number":43,"box":{"x":304,"y":740,"width":249,"height":9}},{"id":"b78c366d-c523-4358-96c0-88e6633ef96e","block_type":"box","text":"Amount of Brokerage","page_number":43,"box":{"x":593,"y":730,"width":124,"height":9}},{"id":"9a3499c5-764f-4ea2-bf61-734c67ad8528","block_type":"box","text":"Transactions Involved","page_number":43,"box":{"x":592,"y":740,"width":126,"height":7}},{"id":"79e14556-981d-4a90-a329-7cefcdc2f9b8","block_type":"box","text":"$2,011,832 $6,503,802,596","page_number":43,"box":{"x":385,"y":757,"width":331,"height":11}},{"id":"d29fa440-b179-41c6-ab99-11c145fdddfa","block_type":"box","text":"As of April 30, 2026, the value of the Fund’s aggregate holdings of the securities of its regular brokers or","page_number":43,"box":{"x":101,"y":782,"width":752,"height":11}},{"id":"3a110fc0-348d-48ac-86a8-9350ebb021b8","block_type":"box","text":"dealers (as defined in Rule 10b-1 under the Investment Company Act) or their parents, if any portion of such holdings","page_number":43,"box":{"x":69,"y":797,"width":837,"height":11}},{"id":"8e705ed6-be9c-45ae-b3d3-3944cb608fda","block_type":"box","text":"were purchased during the fiscal year ended April 30, 2026 is as follows:","page_number":43,"box":{"x":68,"y":812,"width":523,"height":11}},{"id":"37f2342a-7d44-4de5-9da9-4fa2c4e69d91","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":43,"box":{"x":69,"y":840,"width":840,"height":9}},{"id":"89fcc752-744e-464d-b834-8d36181da8b2","block_type":"box","text":"J.P. Morgan Securities LLC . . . . . . . . .","page_number":43,"box":{"x":69,"y":858,"width":262,"height":11}},{"id":"92dd124f-4b08-47ef-97dc-2e460a3c7a0f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 40,470","page_number":43,"box":{"x":337,"y":857,"width":527,"height":11}},{"id":"75479575-e948-447d-a5c9-199dda4dc6ff","block_type":"box","text":"Deutsche Bank Securities, Inc. . . . . . .","page_number":43,"box":{"x":70,"y":873,"width":269,"height":10}},{"id":"679cf529-ccef-4bd8-8d84-51887a65c08b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 13,370","page_number":43,"box":{"x":345,"y":872,"width":519,"height":11}},{"id":"2620edae-1a98-409f-b576-1a94eb4e2088","block_type":"box","text":"Citigroup Global Markets, Inc. . . . . . . . .","page_number":43,"box":{"x":69,"y":888,"width":278,"height":11}},{"id":"b010251d-267c-4e16-af3d-a7cbe0076e3d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 9,773","page_number":43,"box":{"x":353,"y":887,"width":511,"height":12}},{"id":"3c40cd38-5cec-42f4-9a5e-a731112d6fd7","block_type":"box","text":"UBS Securities LLC","page_number":43,"box":{"x":70,"y":903,"width":135,"height":9}},{"id":"51192ea0-7245-48be-92e6-1f559b6e5443","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 2,226","page_number":43,"box":{"x":215,"y":903,"width":649,"height":11}},{"id":"6a6a15d9-77bc-4ffa-9b92-76050a58565d","block_type":"box","text":"I-27","page_number":43,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"a1054bb2-eb05-4f49-8029-3e262ddc94d2","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a242a00-6591-482c-8306-03c602569532","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":44,"box":{"x":69,"y":49,"width":840,"height":9}},{"id":"652375b4-a04c-4199-96c7-01e6b403c5da","block_type":"box","text":"Morgan Stanley & Co. LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 1,980","page_number":44,"box":{"x":70,"y":66,"width":794,"height":12}},{"id":"f6845215-4ab3-4236-ab3f-1d55793885b6","block_type":"box","text":"BNP Paribas Securities Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":44,"box":{"x":70,"y":82,"width":440,"height":11}},{"id":"15eab75c-0f16-4ae2-a6da-88b8a89f13ca","block_type":"box","text":". . . . . . . D $ 843","page_number":44,"box":{"x":516,"y":81,"width":348,"height":11}},{"id":"bf2bcba3-715f-406c-b127-a9a29b5813ce","block_type":"box","text":"Barclays Capital, Inc.","page_number":44,"box":{"x":70,"y":97,"width":147,"height":11}},{"id":"949865d5-d772-41b3-ad2c-c19a1f15b401","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 820","page_number":44,"box":{"x":223,"y":96,"width":641,"height":11}},{"id":"e0f45ddc-adb2-4318-8c42-b86f4d1ca76d","block_type":"box","text":"Jefferies LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 195","page_number":44,"box":{"x":69,"y":111,"width":795,"height":11}},{"id":"fb451e84-6aad-4dbf-adda-3732d63b2bb4","block_type":"box","text":"Citigroup Global Markets, Inc. . . . . . . . .","page_number":44,"box":{"x":69,"y":127,"width":278,"height":11}},{"id":"23af28a4-179e-4ed6-9085-40fad00b19d3","block_type":"box","text":"........................... E","page_number":44,"box":{"x":353,"y":127,"width":309,"height":9}},{"id":"1d33717d-da05-4453-abb0-a3ee248632b1","block_type":"box","text":"$109,120","page_number":44,"box":{"x":792,"y":126,"width":72,"height":12}},{"id":"b9474718-d926-4eeb-b398-cbbc688f4e08","block_type":"box","text":"J.P. Morgan Securities LLC . . . . . . . . .","page_number":44,"box":{"x":69,"y":142,"width":262,"height":12}},{"id":"9649058e-fc7d-4d9e-82a3-fe6f8016dac1","block_type":"box","text":"............................. E","page_number":44,"box":{"x":337,"y":143,"width":325,"height":8}},{"id":"c10650f6-66ca-4db2-bf4a-aefa274cfd24","block_type":"box","text":"$108,976","page_number":44,"box":{"x":792,"y":142,"width":72,"height":11}},{"id":"e7e8350b-973c-4d1a-9ab6-02775316b9ec","block_type":"box","text":"Bank of America Securities, Inc.","page_number":44,"box":{"x":70,"y":157,"width":225,"height":11}},{"id":"eeacfd4f-5af4-4c52-b385-d5f1c4c4c798","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 83,373","page_number":44,"box":{"x":304,"y":157,"width":560,"height":11}},{"id":"84f99897-7765-4773-9e13-78cf1ed40213","block_type":"box","text":"Goldman Sachs & Co. LLC . .","page_number":44,"box":{"x":69,"y":173,"width":205,"height":9}},{"id":"af4932e4-0d62-4071-b8fa-62f0c298269a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 61,387","page_number":44,"box":{"x":280,"y":172,"width":584,"height":11}},{"id":"128689ec-dabf-4ae0-91e9-f2f836ead757","block_type":"box","text":"Deutsche Bank Securities, Inc. . . . . . .","page_number":44,"box":{"x":70,"y":188,"width":269,"height":10}},{"id":"b3c41b09-8c2a-43eb-8569-09d2c7bb8ef4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 16,961","page_number":44,"box":{"x":345,"y":187,"width":519,"height":11}},{"id":"f6762ca4-307c-473b-8e68-e9c761355c56","block_type":"box","text":"BNP Paribas Securities Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":44,"box":{"x":70,"y":203,"width":440,"height":11}},{"id":"62320975-3f71-47c5-b2c0-01735a91e778","block_type":"box","text":". . . . . . . E $ 4,480","page_number":44,"box":{"x":516,"y":202,"width":348,"height":11}},{"id":"c48c2e2f-31d0-48d5-8508-0cb39283d068","block_type":"box","text":"The Cayman Subsidiary follows the same brokerage practices as the Fund.","page_number":44,"box":{"x":101,"y":227,"width":532,"height":11}},{"id":"97019d1e-0ca5-4cbb-b665-6ec544437484","block_type":"box","text":"Securities Lending","page_number":44,"box":{"x":68,"y":257,"width":135,"height":11}},{"id":"17544228-0989-489e-9d4a-064e90cb47ec","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":44,"box":{"x":101,"y":280,"width":807,"height":11}},{"id":"005ee424-03af-4e6f-9a09-5837cb185cc9","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":44,"box":{"x":69,"y":295,"width":817,"height":11}},{"id":"d87794c2-80e8-4b84-b58f-945fe409a05c","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":44,"box":{"x":69,"y":310,"width":813,"height":11}},{"id":"ff285f8f-b0fc-4032-9404-ade05e6c2e2c","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":44,"box":{"x":70,"y":325,"width":838,"height":11}},{"id":"748dc488-f7f6-43ea-9e7b-1b64c4107930","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":44,"box":{"x":69,"y":340,"width":813,"height":11}},{"id":"eb392a2b-08b5-4847-ba3f-d78a244b27df","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":44,"box":{"x":70,"y":355,"width":646,"height":11}},{"id":"fcaba841-35f6-45cd-8756-5b618d5e9a43","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":44,"box":{"x":101,"y":378,"width":735,"height":11}},{"id":"17776742-9a55-42c4-a0ab-781ca1fe7238","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":44,"box":{"x":69,"y":393,"width":834,"height":11}},{"id":"7c0f933e-4d7d-4523-b983-09f633f92163","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":44,"box":{"x":70,"y":408,"width":822,"height":11}},{"id":"7b189f33-2af8-417b-95a8-765842263e89","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":44,"box":{"x":69,"y":423,"width":787,"height":12}},{"id":"8755dd8c-a878-49a4-8b54-a959b6a6fa0f","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":44,"box":{"x":69,"y":438,"width":783,"height":12}},{"id":"396ed042-b87b-4e6c-9038-18f006359f64","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":44,"box":{"x":70,"y":453,"width":800,"height":12}},{"id":"b45751f8-3aca-47e6-8bd1-f8caf3670a9f","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":44,"box":{"x":70,"y":469,"width":813,"height":11}},{"id":"c941b49e-c254-4fb2-b7de-6bfcaa76ac4f","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":44,"box":{"x":70,"y":484,"width":830,"height":11}},{"id":"47921e06-f32e-43ec-8b4d-b8b8a13d7507","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":44,"box":{"x":69,"y":499,"width":773,"height":11}},{"id":"20aeee27-60ef-42a1-8497-b59089eca7d3","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":44,"box":{"x":101,"y":521,"width":776,"height":12}},{"id":"3cfc137d-0f90-4149-857c-e279c748fa94","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":44,"box":{"x":69,"y":537,"width":831,"height":11}},{"id":"e31dc891-4721-4a2f-ae1c-8167eec9f953","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":44,"box":{"x":68,"y":552,"width":812,"height":11}},{"id":"b5abd4d7-e3bc-4843-ab78-39a20d6fc9bd","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":44,"box":{"x":69,"y":567,"width":799,"height":11}},{"id":"0c24a9af-728a-49d9-be92-f8ee586da60d","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":44,"box":{"x":68,"y":582,"width":835,"height":11}},{"id":"0deb6243-bfd8-4368-9efc-fe3823bdfbab","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":44,"box":{"x":69,"y":597,"width":818,"height":11}},{"id":"ed8a4790-d28a-4f1f-aef9-d1ff9a502780","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":44,"box":{"x":68,"y":612,"width":789,"height":11}},{"id":"a54194b9-3dec-4c29-9b68-337e8348c777","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":44,"box":{"x":69,"y":627,"width":829,"height":12}},{"id":"75074a1f-d2e4-42f3-9b99-9fa805f418aa","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":44,"box":{"x":69,"y":642,"width":839,"height":12}},{"id":"c38623c7-e67f-4268-b739-6919fe43e861","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":44,"box":{"x":69,"y":658,"width":802,"height":11}},{"id":"bb4a25e3-ee00-4245-9633-2407513f032e","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":44,"box":{"x":70,"y":673,"width":830,"height":11}},{"id":"a0d9982d-ce75-4357-839f-7555847bbd24","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":44,"box":{"x":69,"y":688,"width":838,"height":11}},{"id":"fd3a1bc3-c262-43ab-b7ab-d4497e75a48f","block_type":"box","text":"Fund’s returns on securities lending.","page_number":44,"box":{"x":70,"y":703,"width":258,"height":11}},{"id":"dac0111c-21ae-4487-8d4f-66366e95bcc4","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":44,"box":{"x":102,"y":726,"width":774,"height":11}},{"id":"78ba6351-840d-4ca0-89e6-8c1b284d3105","block_type":"box","text":"determination of the Fund’s asset class category (fixed income, domestic equity, international equity, or fund of","page_number":44,"box":{"x":69,"y":741,"width":796,"height":11}},{"id":"539028a6-d30e-47cd-93c7-52081f906b07","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":44,"box":{"x":68,"y":756,"width":809,"height":11}},{"id":"fd7a1d36-a645-4b2c-8f56-e6b9069ac093","block_type":"box","text":"Fund and BIM.","page_number":44,"box":{"x":70,"y":771,"width":100,"height":9}},{"id":"a240d58e-a769-40a1-810f-01d1f6a4287b","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":44,"box":{"x":102,"y":794,"width":783,"height":11}},{"id":"32584b66-68d5-46da-affe-9bc07508ff01","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":44,"box":{"x":70,"y":809,"width":815,"height":11}},{"id":"ee2765b3-2981-4884-9fc8-c350e63deb57","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":44,"box":{"x":69,"y":824,"width":463,"height":11}},{"id":"194d003f-c6c0-4707-85d6-1c792cfd68b8","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":44,"box":{"x":102,"y":846,"width":753,"height":12}},{"id":"0dcb416c-7608-4c36-9e33-be48435e584b","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":44,"box":{"x":69,"y":862,"width":778,"height":11}},{"id":"d5d4a0f9-782d-4bb8-98dc-9eb0cfdef4de","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":44,"box":{"x":70,"y":877,"width":817,"height":11}},{"id":"1b14e161-283b-47d1-8f3c-32bb920dd485","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":44,"box":{"x":70,"y":892,"width":794,"height":11}},{"id":"a6102a5c-ea18-49b2-bd18-2cc5668b3940","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":44,"box":{"x":69,"y":907,"width":825,"height":11}},{"id":"d4bd663e-753f-49de-a090-987bb2db520d","block_type":"box","text":"I-28","page_number":44,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"43fb4e59-4b71-4c6b-97d2-21059ba4ba20","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b45d42d-e177-448a-8390-e5c20badba27","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":45,"box":{"x":102,"y":45,"width":683,"height":11}},{"id":"91fd4eb1-dbcd-4d34-ac7e-566687ea3bd7","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended April 30, 2026, primarily included","page_number":45,"box":{"x":101,"y":67,"width":804,"height":11}},{"id":"98141eab-657e-45a0-b7a6-9179418c0116","block_type":"box","text":"the following:","page_number":45,"box":{"x":68,"y":82,"width":93,"height":12}},{"id":"d18baaeb-f055-4d44-bb3b-a3232b6922c5","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":45,"box":{"x":69,"y":103,"width":818,"height":11}},{"id":"1ba4ca43-28a6-4675-b4da-197d40b53abf","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":45,"box":{"x":102,"y":118,"width":333,"height":10}},{"id":"40127100-bdee-43ec-ab1e-63ffc27981ec","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":45,"box":{"x":69,"y":138,"width":538,"height":11}},{"id":"950efba9-5150-48f6-a6b3-737577ab40f6","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":45,"box":{"x":69,"y":158,"width":330,"height":11}},{"id":"dc2fda14-3069-4c5e-a2fb-2c1b16497926","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":45,"box":{"x":69,"y":178,"width":834,"height":11}},{"id":"30cd522a-2878-4108-a869-4175f344d2dd","block_type":"box","text":"of excess collateral, as necessary;","page_number":45,"box":{"x":102,"y":193,"width":246,"height":11}},{"id":"f5452894-4272-4e5b-8f75-5b20e6d25e1c","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":45,"box":{"x":69,"y":214,"width":562,"height":11}},{"id":"5f270650-d7be-4f19-89fd-27cc235a73b0","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":45,"box":{"x":69,"y":234,"width":665,"height":11}},{"id":"e176fbed-3b41-4197-a00f-c5ddd26ff047","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":45,"box":{"x":69,"y":254,"width":822,"height":11}},{"id":"f79dc43f-8c02-4fe2-af66-9403135f2e5f","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":45,"box":{"x":101,"y":269,"width":803,"height":11}},{"id":"bf7207c4-5a43-47bc-ac98-85a9a2a99fed","block_type":"box","text":"of the loaned securities; and","page_number":45,"box":{"x":102,"y":284,"width":203,"height":10}},{"id":"9ef62d87-9f8d-4f33-a449-31db5b33cf89","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":45,"box":{"x":69,"y":304,"width":808,"height":11}},{"id":"eb529280-ba78-4a94-b0f4-fe3247c100e8","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":45,"box":{"x":101,"y":327,"width":805,"height":11}},{"id":"3fb64f82-e101-4b20-a7f9-395263ef48ac","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended April 30, 2026.","page_number":45,"box":{"x":69,"y":342,"width":548,"height":11}},{"id":"d260017c-6b14-413f-86d9-040946b3a9ec","block_type":"box","text":"Gross income from securities lending activities","page_number":45,"box":{"x":69,"y":370,"width":343,"height":11}},{"id":"7a4ff8ab-e2af-4e4a-98d1-c578e89d62b2","block_type":"box","text":"................................................","page_number":45,"box":{"x":416,"y":377,"width":385,"height":2}},{"id":"55bd7d44-6e80-4cb5-b207-f4947c568dc9","block_type":"box","text":"$4,256,538","page_number":45,"box":{"x":822,"y":369,"width":87,"height":12}},{"id":"df4132ef-942e-42ce-84af-2e5545d8e59a","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":45,"box":{"x":70,"y":389,"width":565,"height":11}},{"id":"42cd5a8b-e1e2-439c-b79e-b5c9e20b9c8b","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":45,"box":{"x":79,"y":404,"width":599,"height":12}},{"id":"8b80161a-2406-46fa-befa-790017e90535","block_type":"box","text":"............... $","page_number":45,"box":{"x":685,"y":404,"width":145,"height":10}},{"id":"b92be71f-96f5-4e61-b640-5ef028418abe","block_type":"box","text":"182,467","page_number":45,"box":{"x":847,"y":404,"width":61,"height":11}},{"id":"4511691c-d89f-477c-baf7-85eb1183b06b","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":45,"box":{"x":79,"y":420,"width":673,"height":11}},{"id":"5e5bdca9-921f-4fc1-8339-7ef31696fb9d","block_type":"box","text":". . . . . . $ 37,591","page_number":45,"box":{"x":758,"y":419,"width":151,"height":11}},{"id":"e333254b-352b-41ca-abea-4f915123786b","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":45,"box":{"x":78,"y":435,"width":551,"height":11}},{"id":"e18c2ef1-b416-4828-8d30-7fa470847ebc","block_type":"box","text":"..................... $ 0","page_number":45,"box":{"x":636,"y":434,"width":273,"height":10}},{"id":"6bb3a1b5-3816-4bbb-9d4f-cf2c10517856","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":45,"box":{"x":79,"y":450,"width":567,"height":11}},{"id":"3c6a9600-06b0-4dbe-b0d7-265d65d8dbf0","block_type":"box","text":"................... $ 0","page_number":45,"box":{"x":652,"y":449,"width":257,"height":10}},{"id":"6b48a5e3-359c-4c1b-99c6-7db07c62aa89","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . 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Information contained in this","page_number":48,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"160b5827-bac6-4e99-a294-7d8fb3a3547b","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":48,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"30a46f00-a4c8-444c-a88c-65843718bf71","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":48,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"f4485a88-2e6a-4660-9328-eba763ee7421","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":48,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"ddbf6666-4654-47b4-8822-f2609fdbf1df","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":48,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"640e3663-2cb4-4096-b6db-663f511c684c","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":48,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"7e9e3956-d61d-4545-b228-5c0c34bc4cb5","block_type":"box","text":"Asset-Backed Securities.","page_number":48,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"75f99840-c7b9-4846-8432-5634665385c3","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":48,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"925aebd5-675b-47b4-9e6b-c7a56bbdbfc3","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":48,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"f55e76ef-32a8-4011-8c2b-7a4f129ecc33","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":48,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"ba993052-cf50-43f6-85c0-dfafdcee5a3e","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":48,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"4a859bbe-5c38-437e-96d5-6ee8ff7b8270","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":48,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"cfe48f4e-7a98-4225-9c54-340618b9648e","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":48,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"e0f1a82e-aa49-4587-a22d-83e77e93ae1d","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":48,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"8d01d787-e1f5-4923-b080-ce75e59ecdda","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":48,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"27608a04-3bc8-4d4c-89f2-bd0214263004","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":48,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"05ecc83c-5882-45d0-8d8a-55ad9f3e5955","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":48,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"975bf760-140e-4b99-bc0b-cbcef65ac51a","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":48,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"59e744df-e055-46fa-9ab2-cd3d43e07977","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":48,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"f9e01949-1671-406d-a79a-8c59100b646a","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":48,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"f17910c5-f214-4aa9-a04e-003c99c34b86","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":48,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"75dbb3d9-ba28-48d3-bd86-182049ab0f39","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":48,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"42720e9e-e334-4707-98db-e8aca130ef93","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":48,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"b0f8cab7-8606-440d-977d-1a1cb4e9ac5a","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":48,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"7a07b25e-4aa9-425f-8916-18ce2f00755e","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":48,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"8dac77b7-b83e-4d24-9b71-ffead288bcbf","block_type":"box","text":"II-1","page_number":48,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"2c27b4ff-066d-4413-bc61-dae38b0914a6","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"83b51a44-2542-4d57-9180-e957b6dada94","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":49,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"9d628039-d352-414d-a315-023a4dbcd2f5","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":49,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"d6431aea-cd6f-45e3-bb2c-0c0dc7d1824c","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":49,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"510683b7-2e47-46ba-ac34-a8c6f9736687","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":49,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"2d0c12b7-710c-4835-8ac8-eae8d6906aa5","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":49,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"4f92666f-2815-4eb8-813b-30674afe0f9a","block_type":"box","text":"Asset-Based Securities.","page_number":49,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"db1cb7c0-1bff-4dea-be4c-e139f238d7fa","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":49,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"cd7526aa-6f60-48fb-adfd-b48d1751a423","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":49,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"3aa267ae-3850-4252-82a5-93ac5bba3c92","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":49,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"d0003df9-b005-4852-a5c3-9f991726292e","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":49,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"ed574482-8658-4dc9-8626-9d1caddb03ab","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":49,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"f3ac1e00-f41d-4d05-9e02-a381ac5b1763","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":49,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"3bcbef87-4839-4ff1-8b26-421277642770","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":49,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"b80467e1-4c02-4b95-be7d-0d703058f604","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":49,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"f2c8f894-cf6d-41cd-a699-9c81b1e2bcdf","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":49,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"d260bc1c-c048-4f09-947f-eaa0dfa9797c","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":49,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"f1558446-cdac-46bc-ab1a-7ff7562237b1","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":49,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"6109e04f-2c8f-4713-95ba-79de877f52fd","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":49,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"1ed11316-838b-4462-b2f6-8a2cc85588ff","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":49,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"5de12118-523f-403a-b1c9-ff3c41c8d182","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":49,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"1a4e9ace-e928-4001-b831-06121eca51b9","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":49,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"87d055e0-26c2-4524-9e05-d497f33bd4a6","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":49,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"9a33f0fe-0bd4-46e9-800d-2ba41295112c","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":49,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"5ed3c79d-50d7-4721-a020-6cc0fd37b976","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":49,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"14561d7a-6b9e-4b51-8146-2fad231e016a","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":49,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"5fa38902-86d9-43eb-8603-af32c117c2a4","block_type":"box","text":"appreciation in the underlying asset.","page_number":49,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"dc312e54-2820-4521-ab7c-7d2f801bec11","block_type":"box","text":"Precious Metal-Related Securities.","page_number":49,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"fb684f12-ca59-4bb9-87a9-b0ca12222560","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":49,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"5a71407d-77ba-4b6b-aede-8c891da9f286","block_type":"box","text":"explore for, extract, process or deal in precious metals (e.g., gold, silver and platinum), and in asset-based securities","page_number":49,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"fb675103-55d6-483d-a621-8ef56a01b25b","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":49,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"93dc405e-b256-42b5-8f90-fc46b82dd2d5","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":49,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"21ca7a0d-ebc3-44c1-ac65-e340aac01f8b","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":49,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"82adff82-077b-497f-8b34-4cfd89c29fbb","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":49,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"2a29f6d2-a027-4aa4-a270-12f26bb28532","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":49,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"8c1e6906-a047-4b48-b0eb-b85b3890df7d","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":49,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"d41bf18e-577e-499c-b652-3639b19f2939","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":49,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"a290e436-621a-4ec9-a132-e44766071e6b","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":49,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"734b2c29-b5a5-4984-9e2f-a6b58fc2f1c4","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":49,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"b0d8f774-862b-4931-a5ed-4059feaa6eb7","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":49,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"d6d4039c-12f4-420a-b437-6ce0b57fd753","block_type":"box","text":"South African gold production.","page_number":49,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"3d5d43e1-d886-4e7e-ae80-cbc4104ee3d2","block_type":"box","text":"Borrowing and Leverage.","page_number":49,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"a953966d-5494-4dfd-88be-c284bfe2c599","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":49,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"7f48bdc8-73df-42b7-8fd2-9339703de517","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":49,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"5b230ad4-b5ac-48f7-9ccc-71fa0a7a46b4","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":49,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"9fee7f4d-3478-40ea-b3b6-7c36e9a5e43e","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":49,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"c0499fa7-d3e5-4b6f-bc65-4efbb547bdca","block_type":"box","text":"other securities transactions.","page_number":49,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"fd1be0cd-ab8a-4a31-a458-b1e509398da9","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":49,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"0005df8a-fdcb-4805-a96d-661c6c9e67fb","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":49,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"3b8b22dd-519c-48e6-8116-2a9e69fa7d83","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":49,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"07ff2763-1b48-4dbb-b42b-f8fe4553e062","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":49,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"5e42a7c6-41e7-45c2-bbc0-ed97ee0eab20","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":49,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"cfaf9893-edea-4ad8-975e-c751e4528c46","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":49,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"39c2492c-dd4b-4608-8413-7f3cab8edb3b","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":49,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"92bd62d1-effa-4409-ad1c-0ada5ded61c1","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":49,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"8ae3fbba-4d79-44ae-a7f8-7e2819b3e3aa","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":49,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"b35b2c85-4c0e-42b1-901b-a67c480c614d","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":49,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"4f05ddb8-868c-4a28-bf52-6aa08385be22","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":49,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"1f855030-701f-4e06-b51c-00852899bc2e","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":49,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"39cb7a21-4c33-4761-9cb0-f4864e0d4b3b","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":49,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"5de29c74-49d7-4e38-b960-3a5b2f9cb8a2","block_type":"box","text":"II-2","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d2a9060f-4473-4d09-bd2a-58f0d93e7972","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f84426a-ffd8-45d2-baad-77610c11e9db","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":50,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"cf6a245d-7faa-4a0d-b821-06ddbcb975fa","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":50,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"30fc9187-5d64-4844-9a85-df4f655ba5fe","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":50,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"bc51da77-d19c-42d0-aa08-5948ebeba6f9","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":50,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"aef880c0-b2c4-4165-a59e-a8eb9048587b","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":50,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"c4d23fa7-d213-4004-8c5f-e700b28618c8","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":50,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"6956c9bb-103b-4b07-bef3-de54b4a4ff40","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":50,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"cd79edcc-8072-4d21-8cad-06bedf35882d","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":50,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"37ef1d50-1bce-46ce-ad3c-50ba5da085d1","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":50,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"25be2b43-b719-4b1f-82d6-7c042c8057b3","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":50,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"628bff65-831a-41bb-a868-ae38bc6de8cd","block_type":"box","text":"Cash Management.","page_number":50,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"5f1fae51-5bc9-453b-9290-e7adf1fb8f3e","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":50,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"6cacb663-e379-4b17-b586-3a764158e655","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":50,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"bcfb42fb-2add-49f2-a540-b47dd0e09e6d","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":50,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"136517ff-75c7-450f-8c86-7a2665b97d30","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":50,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"a7ab4d32-9caf-43f3-a4ab-c347e93383ac","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":50,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"7737c7f1-0117-4154-958c-945b02d2957d","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":50,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"bc5873dc-f81f-4417-b982-30951c055f18","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":50,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"e120307a-fed0-460c-84c1-5ccf66730025","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":50,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"f1fb6286-46cb-45e6-972f-576b92165975","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":50,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"d56d4186-d772-4326-b763-d0562f890029","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":50,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"f9953881-58b8-4864-a5fa-6398ebc8ff4e","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":50,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"0c9258f2-f3da-4853-aa93-8ba730afcea1","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":50,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"5e037a80-84c0-423a-8647-fe3ab165b2a8","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":50,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"c0a082c6-efc4-4129-bd1e-041f1f633254","block_type":"box","text":"Collateralized Debt Obligations.","page_number":50,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"4c3984f2-48b1-447b-96cd-608f3d8b0806","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":50,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"9879ecfb-4e7f-4b7f-aac8-556d8dcb3330","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":50,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"091f8353-73a3-463c-93c8-bc4bb4365d37","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":50,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"9c926d43-9156-4a25-9de0-e8677fbf7723","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":50,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"dc3f743a-d13d-42c3-ae4a-4e8bf1653e42","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":50,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"9d5dc016-b342-4355-addd-07cbde17d8e8","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":50,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"8902f414-0b01-4039-9688-dfd13ce2867d","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":50,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"a20538fc-3251-4f56-a8d2-e5ddd349aff1","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":50,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"9c736e56-e3f8-45d8-a47f-b23cbcec2492","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":50,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"7024b05b-1e92-4e5c-9352-6415f9aa690e","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":50,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"50182141-539f-456c-96b8-6fd20f4f30bf","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":50,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"eaa0cfce-74bf-471a-bce0-9f6dc261b5f8","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":50,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"2590e295-fd39-47f4-9bf9-3d641f55a5d0","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":50,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"5bb4fc03-769e-4c04-bc3b-666cb52773b5","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":50,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"afb20422-a9fc-4f75-81ac-bf2e18283e25","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":50,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"cbc56372-d66e-4b13-b6bb-f1c40d66e45f","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":50,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"6cd4ba9b-2455-43d6-9d0b-5b126718bd80","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":50,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"5548503b-e784-4779-8d81-17721a675dfb","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":50,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"5da3b6ca-5906-4ac7-ab06-bb169b99de6f","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":50,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"bc17f2c7-b362-4ba9-bbe1-6095bd760817","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":50,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"f8aaaae9-ce44-4525-935c-c6017ffae7c9","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":50,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"efeccb77-a5a8-4a47-b650-1a3a311e424a","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":50,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"b5488b2a-55e6-452d-ba45-0c1855d07cd6","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":50,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"4ea283d1-58e0-4233-b18e-2275d02fc33b","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":50,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"13c0a4e7-8652-4974-bfa2-96a97228b995","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":50,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"3861d250-5eaf-4e99-9942-7d1c21a4d571","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":50,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"7ee038fd-7a60-4b74-9665-55e1a481f20a","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":50,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"dabceb51-0b43-418c-af92-fa6277be9e60","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":50,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"71fef1e1-52d3-4995-adb9-d344e17820b5","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":50,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"7078ed0f-cac2-4d1d-b915-a9354ccec866","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":50,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"42e9248b-af72-40ba-8b20-8f59d81b381c","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":50,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"6517a77c-6baa-405b-b6cb-8180917057ff","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":50,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"af4cd6eb-c1d3-44b0-88dc-535fe31bd0e8","block_type":"box","text":"II-3","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6fc81866-b61e-4e8e-8db3-79e638f31c71","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d48e93d-1e34-46a9-8aa5-82b77324536b","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":51,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"93450c31-8353-4f25-8ce3-0210d1d1cfc6","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":51,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"792f34d1-82e4-4116-9396-629ca727bef1","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":51,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"8960df68-fc3e-47d6-a807-f44a81dc1d1e","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":51,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"66cd72de-c9e7-47c7-bb2e-6800ba955eeb","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":51,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"f4a528ab-2cc8-40c2-8d2d-6069be449dc9","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":51,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"4d7657f9-f859-425d-b71e-d1224180d1f8","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":51,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"e9bec21d-377d-4899-9d41-9b750fbadd83","block_type":"box","text":"Commercial Paper.","page_number":51,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"6b7c3d0f-3877-4f62-b146-c8d755afaae9","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":51,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"e3cd2aaf-c1ee-4f8f-b698-7c0dbc734ddc","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":51,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"7255760d-cc1d-486a-86bc-e8e54d8b8585","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":51,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"02e9f910-a0f8-4cdf-b948-bac07e7c44d2","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":51,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"01d7e4d4-f616-4017-866a-1703249f60ee","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":51,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"4d0f859b-9446-47d8-8620-942cb3c57b1a","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":51,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"0d9c4512-4aea-4e0c-a954-1f75bf534699","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":51,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"2c79d794-8cac-478b-945b-49665eb82d4c","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":51,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"608290ee-7728-4fd5-b38d-4b478696183d","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":51,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"8f00c597-a4f0-4e7a-967e-98ee59b58baa","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":51,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"ac6982b2-b175-4847-9b1e-010c37650af3","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":51,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"4f06ff34-a463-488b-85b3-ebbae8bc8eed","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":51,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"d29248e2-8dc7-47f8-8cd0-be97814df78e","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":51,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"7edf6787-b15e-4b8a-9596-430aefc49413","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":51,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"f61b0759-200c-4a67-871d-4ef31d784dff","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":51,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"aef010d1-ae79-4590-9641-2a5d867ba696","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":51,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"8e87a3fe-2c76-4053-afdb-a1c4b2f694d6","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":51,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"c3ce7805-1e73-4a52-91cd-8813ac56c9fb","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":51,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"dffa439d-baf8-4c1e-94e1-9b87ea21719c","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":51,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"c853274b-45a0-49fb-9301-997696157298","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":51,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"4bfabb06-3dc3-4de7-85a0-9125d32ae1a3","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":51,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"d8b4253c-89c3-4623-b75f-ed05fdb331bf","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":51,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"2fe677f4-3298-4444-9f7c-979012eebf72","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":51,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"130d4df6-a617-4ccb-8b8e-ea0e9e88247a","block_type":"box","text":"variable.","page_number":51,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"08b51e4e-9b31-4a9a-82fa-6c60871a55a0","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":51,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"869a6653-2df8-4084-b09f-81bbd1b87652","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":51,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"bf39d5d0-e6fb-43e7-91b5-9fd70355398a","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":51,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"245e00b8-abfe-4927-96da-ca9fd74d072d","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":51,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"6fe79610-8ab8-46b9-84a8-e05296d99a1b","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":51,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"ece53bd3-d8c3-4033-9071-daa070edb25f","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":51,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"cef19367-2873-4e14-99bf-5f592fd93626","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":51,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"05cfb84c-9526-426e-8bd3-fefbaaf0ba2e","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":51,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"16100e6a-892c-4080-8724-e4ad9bf789c7","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":51,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"7b0fddc5-3ab8-4d84-9f11-29e44aad54bc","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":51,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"5abde70e-8c3b-46a6-9e92-1719e2641d2a","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":51,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"f64fb9cf-afe0-48c9-a1fd-7d61b0fec7bb","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":51,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"50365c46-6f01-4db4-8e64-34d9771121d5","block_type":"box","text":"correlation with stocks and bonds.","page_number":51,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"29922292-d4b0-4bd6-b026-dbbf0986df66","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":51,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"2a89b6f1-eea7-43e2-bbc3-0d9a4550158f","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":51,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"3e553d45-dd3e-4056-88c3-1e28c024b37c","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":51,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"3eb32a24-7fa5-499f-854e-00a63d712c51","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":51,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"bc59fa59-3da3-497b-bdb8-3d585be9a5a9","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":51,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"840b92a7-dbe5-4bf6-b1db-bed4e987ff1b","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":51,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"e4c54ddc-4ee7-4ba2-ae44-73f96b34eb68","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":51,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"2164f259-b040-454e-8f5f-c71cd32725cf","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":51,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"6dffa8df-ff3c-4fc4-b501-884a825cb68a","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":51,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"ecf39d2d-7731-44a9-beab-7f2ebf547427","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":51,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"86ae5fda-c09b-4955-8359-d3c1dcfb3a27","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":51,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"fd940aa8-6afd-4d9d-86b4-998cc02f0002","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":51,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"86ae9b64-381f-4ff9-9a6d-7541269ca17d","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":51,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"dd128279-8ae9-4fef-a27d-8a1840314dee","block_type":"box","text":"II-4","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"88bc75e6-f2cb-44f8-b22d-fc2b479cc78d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e9da4ab-8f25-4afd-85d6-9acd4dca0fb7","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":52,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"657a40e8-56fb-4ab0-9503-e70e7b29aad0","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":52,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"60fc2f6e-1ff2-4e0e-a08d-8380a93021e6","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":52,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"e65fac72-2d59-49bc-9402-db707b4b9440","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":52,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"10260dc8-5ee6-4b1b-b2cf-278347719314","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":52,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"65d6adb7-ec92-4624-b3e8-c8882d9c2a5b","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":52,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"cb19b13f-5eb1-411d-9b90-b6ec8d0d658d","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":52,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"86455f49-c46e-40a9-8b1f-d095447b587c","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":52,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"3aaf0d62-b59f-4ab1-9055-c2c66d31dcad","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":52,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"68f58687-4d2d-4a2c-8f67-cc464a8ad67b","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":52,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"81bdfad7-3eb8-4f00-b706-536b1ae645f2","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":52,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"7039426e-7b04-4e19-986f-d28047a3902f","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":52,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"e7d3b0ff-23f3-494d-8e4f-8aa4f1af4aaa","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":52,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"ed24720e-a107-465f-89f8-8b35e2eb30ee","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":52,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"75fd758b-b5ea-4407-9034-2938b200c686","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":52,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"3058dcac-f7a8-4d78-8766-bc901f699007","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":52,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"56aa38ca-b9c5-42d6-a5fc-b0087e044231","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":52,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"915a441b-d847-45d5-80d5-d71c6dc3797c","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":52,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"413a54b4-e9fb-4528-ae60-f2f4f574b638","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":52,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"07d833b6-723b-4df9-923e-b14a9a14e0ab","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":52,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"08f9845c-25e4-4e49-9de8-fe3626de9b5e","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":52,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"2df7414f-9d59-485d-947b-67312d0ee8ab","block_type":"box","text":"the Manager believes are relevant.","page_number":52,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"e21bf428-8279-48cc-ae29-39e8a3014e23","block_type":"box","text":"Limitations on Leverage.","page_number":52,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"32d48669-99c3-42c4-bb1b-8bbb3495a015","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":52,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"9f20c776-b3ab-494f-80c1-b61e6038a575","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":52,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"226fc3e3-cebf-4828-a374-4f4b23a0c1d0","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":52,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"9d4512d1-3895-4149-a8aa-ef7760a0da2d","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":52,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"61423620-baba-44fc-8640-63b2d3533dbb","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":52,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"66d92324-cc71-441d-95d3-95c0344f72ad","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":52,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"dc1d78ad-3b56-4293-bf75-d516a3d624fe","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":52,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"659c99ca-682e-47a6-b54c-7779207590c4","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":52,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"f8557226-84a0-43d3-86f3-ae28abcfed0a","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":52,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"3bf522ea-ed18-4f26-be90-d9e7f0d19653","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":52,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"9e1e06ba-4a47-4f55-b326-c4bf9ebb8602","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":52,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"bb415f2d-55e7-480c-bf5f-4c4952a81abf","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":52,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"b8a73129-e68f-4997-adca-25d904604a19","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":52,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"de624186-15dc-4f2c-b438-4fd702215ab6","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":52,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"4ace4d0c-e0ef-4907-be92-6639b532a13f","block_type":"box","text":"Counterpar ty Risk.","page_number":52,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"68ee0eac-27fd-474e-bd05-8fc0788a855e","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":52,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"305f9b11-c7f4-4227-b148-033742af4a5b","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":52,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"6e163087-edd9-4fec-89f4-050f6238866d","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":52,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"8cc059bf-972e-4e8d-8f6d-61494a7d7fca","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (e.g.,","page_number":52,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"17e56d78-f836-483b-aad4-56ee66252471","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":52,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"5e5f5029-27b9-4917-bf67-0f91afc98520","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":52,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"de378612-9a47-4068-b1d8-4d28e5db9e88","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":52,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"5a0b9988-c61e-4761-9c29-259ffac4fe58","block_type":"box","text":"obligations under the structured note.","page_number":52,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"5ddc8f02-a22d-4d69-a3b8-2976879c312a","block_type":"box","text":"Convertible Securities.","page_number":52,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"ae3186c0-7127-44c2-94c3-9ff7eb840a36","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":52,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"f6453f02-aaa1-4f57-9a01-4b4bebbb7300","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":52,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"cc52c60c-51ce-4ce5-957b-e7ee86eaf4da","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":52,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"48fd7e4a-4383-49cd-8325-4e83c58eec67","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":52,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"d12db63c-73c1-4ffc-924a-c8858378474c","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":52,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"437be855-31e6-4678-a4f7-7af008465b79","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":52,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"2400ce61-401d-4f34-a37b-71a3b3e8faa1","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":52,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"99d4328a-d3e9-4492-9176-ecc7a64561bf","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":52,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"5977caa9-d38a-4554-8af5-a4845829408f","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":52,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"996f2cb9-ddad-4841-ba40-750f74e23f06","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":52,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"1fc91333-17d9-41bd-857d-b30b0ad502f5","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":52,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"566e9586-e92a-4e62-bd97-9935ccbd3d39","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":52,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"c94e2d8a-125a-4902-a41f-555a21b9c9db","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":52,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"e52e04d6-c192-435a-a310-d56e23ab7c7a","block_type":"box","text":"II-5","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"fcde6833-8642-4daa-91e3-6666e666fde7","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f718a166-87c2-4732-bbd7-36cae43cd6a3","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":53,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"2cd5eb6a-c898-4612-964f-901b98067cf5","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":53,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"79ed03c4-4366-49e6-ba16-6158b5d707fa","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":53,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"2b125d7e-59a2-46a7-8808-0564bd0498cc","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":53,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"39304eef-05a8-4235-8805-e9aad2034795","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":53,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"29ee1270-7e68-427d-a8e5-2ee2c9218ade","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":53,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"10ec1eb8-4f62-46eb-af77-bd8e1742403b","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":53,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"4c3953b7-f8fa-43ea-94d9-a93fd0ce5211","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":53,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"2c478c21-10c5-4646-9043-dfccbb5d97a0","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":53,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"dad8ead7-2697-479b-896a-a385ddf9938e","block_type":"box","text":"things.","page_number":53,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"701d6840-da94-455b-9ebc-416d63bc5b69","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":53,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"b26a67f4-d733-4a7b-8299-43b312839305","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":53,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"9b2870bc-7198-42ef-b68c-65abd01f5a6a","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":53,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"85cbc7e1-1aa3-46c0-93f7-3a55d85cfd9e","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":53,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"209405a5-c5d9-4017-ada0-b2438613881f","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":53,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"4a62c13e-427b-4731-b02a-8f0d40aecf8d","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":53,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"b3331fe8-9f13-4504-93ad-956f1f2f0f2e","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":53,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"0ab073ef-c82d-42f1-b520-66d1479177da","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":53,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"118c863a-8f70-473e-9e9d-b498f7f44d79","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":53,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"119770c7-7a1f-4d72-960b-f7c189555b21","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":53,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"0a29909e-6c6c-467a-9a7d-2618000c4c26","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":53,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"c7f9b318-fe33-4322-b571-765b794dfced","block_type":"box","text":"convertible security viewed without regard to its conversion feature (i.e., strictly on the basis of its yield) is","page_number":53,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"c37d12cf-de96-40f5-a17c-674aaa17ea4f","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":53,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"b9e10096-0380-4f2e-9674-9656f9057fdb","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":53,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"4f434bb0-e990-404e-a150-cf3079d199dd","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":53,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"dafddd17-c8fc-49ef-9782-04f53478d6e9","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":53,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"01d90e94-2ca8-4457-988d-bd6394693ba0","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":53,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"6b44085b-96a1-45ee-a4aa-63cde5979222","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":53,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"666d93c1-123d-4ef6-8224-e2f254fb037f","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":53,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"24516074-37d5-4730-a714-968bd7e9e91c","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":53,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"4066613b-c59a-4bbc-bb11-b9b4da2cdbed","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":53,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"33772b6d-8930-45e7-a7f2-dc0fa3eb2813","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":53,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"05cec64f-869c-46e7-a61a-d12658d5690f","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":53,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"45954ca2-e02f-4a9c-b1de-d75d08a2ef22","block_type":"box","text":"than the securities’ investment value.","page_number":53,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"f2ffa09e-4075-493b-9c9e-1f97e72d1385","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":53,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"275b6a87-2b99-40eb-9541-02cb198053f8","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":53,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"a3c0d7a1-74df-4dcf-863b-3e137ceb5cfe","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":53,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"e7b94d8f-8eb1-4076-be9e-894e8283bf19","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":53,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"b8d57ba7-2456-42e5-a825-b56a9f63bf7f","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":53,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"8dcb680d-1766-4728-9eba-74f21e86b994","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":53,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"be32a036-f917-454b-91d0-0bc53562370d","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":53,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"d372893d-306f-447e-92d1-0ca7532f8165","block_type":"box","text":"security under certain circumstances.","page_number":53,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"606379fc-de08-4dce-a8bf-2c783ab490cd","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":53,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"5fb40c62-bc01-4d0d-aa73-9f9dd46fc67a","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":53,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"35775506-c4d8-4ee9-9266-32f70d8acb5e","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":53,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"b40b15be-978f-46a9-861c-7d9c7d55ec49","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":53,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"ef75e343-07fc-46fa-b46d-687b842ab131","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":53,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"10feeef9-5208-41b1-8559-ef0226135448","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":53,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"09845365-2847-4fcb-8eab-6cf701f91ed7","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":53,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"554e2f3a-49e6-44d2-9014-8d6779bbd658","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security, i.e., fixed-income (“fixed","page_number":53,"box":{"x":69,"y":823,"width":808,"height":11}},{"id":"c7f6f4ed-b01b-4f2b-a674-aa4f57f60e29","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":53,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"9074ecad-708a-4b1b-8f4a-8ad88e0360d1","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":53,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"8a4c0b32-f610-415b-ba7e-427e7d7c38f8","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":53,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"9c06ec6d-d37c-4e73-bb05-5481671af01b","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":53,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"513983ef-915c-4ce8-9128-b0bcf8ddd3ae","block_type":"box","text":"II-6","page_number":53,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"04e0cf3e-38e4-49c5-a05d-d529ff4c8946","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f304672-8eb7-4a87-968f-3a371deda968","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":54,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"d2cfbd40-5dc7-4444-b4e3-fda1daa95ebd","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":54,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"e2c2605e-28fb-46b0-a391-6c725b3acc34","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":54,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"b75135b9-ab46-4eef-9566-7008a6ebf261","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":54,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"597b66ba-b0fa-4aac-aebb-925324bae922","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":54,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"83a38c36-f387-4641-9a68-40953b63338b","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":54,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"269f84ca-4ca5-4e2a-ba51-30a86598cd75","block_type":"box","text":"component.","page_number":54,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"3db42266-4a22-4078-ad66-0df70da6304c","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":54,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"26c54510-07ad-4fca-b83b-3c11f116df21","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":54,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"42fa1e19-4ede-4aea-8beb-672ee05c67c3","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":54,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"3c988fc2-c1f1-4b5f-aad3-41e349ac6f26","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":54,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"4b69901e-984c-4ac3-a118-d6aab65c0168","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":54,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"5cececec-70d2-4669-bc0f-6513c22b78a4","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":54,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"27a0f71b-b6ec-4107-a3d0-89ff258932d4","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":54,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"fef2c227-b105-416d-8348-929642c07bd2","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":54,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"79849aae-afcc-4cb9-bc18-5125a36f0937","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":54,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"3ae5250c-ca2c-44a5-8b20-54738c2224f6","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":54,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"e149576e-ac68-4247-bda3-6be9613b6758","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":54,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"3e9c46c8-dbbe-4b06-bfe3-66decdf4be31","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":54,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"1bf50f46-7354-44b5-90f1-b103a90b5649","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":54,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"3bad3ac0-5a16-4ef7-9c25-49f92bb552fe","block_type":"box","text":"favorable market conditions.","page_number":54,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"499e2baa-29d1-404e-a869-198ab6ccbc96","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":54,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"fff857c9-30a9-43f8-9b33-23288bde80e6","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":54,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"06d57850-0bfb-4bcd-b6be-6f5678ac6614","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":54,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"d5ce192a-07f2-4810-9116-39db761d109d","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":54,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"d564dde7-148b-46d9-a1d1-125d1eec56d5","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":54,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"1824da63-86da-44b3-9cd7-f19d52f0bf03","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":54,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"c33d49f6-f616-4397-8d31-166b76c9fdc3","block_type":"box","text":"Corporate Loans.","page_number":54,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"42aa05e9-1307-4cfd-95e8-7127f1551cd0","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":54,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"1f80c8a3-a7b3-4578-8d69-aff4bff628f3","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":54,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"54d47b2f-1b2d-47f9-8e4f-68e00b5b8759","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":54,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"bdae76bc-2958-4e48-a1a9-d062e32db27e","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":54,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"e06c9bdb-3d35-4ce1-8c82-cd29696e1a85","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":54,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"ef58632b-4a01-4dde-8138-a063aa27590e","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":54,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"1a87f6f3-b1c9-4b10-983a-24b783f1a0af","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":54,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"098e872c-1123-4ffa-b6b9-aa8c3ed94d08","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":54,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"54b66eac-51de-4243-99a0-cb5806dee3f1","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":54,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"ba1626bd-ffa2-4484-9eb4-896fc528de1b","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":54,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"32fd3ef4-4176-4354-a6af-2ee1901cc54a","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":54,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"263c5ff4-968b-4895-96d6-10fb547ec4a5","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":54,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"88388f99-2268-43aa-a604-efdff250a687","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":54,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"afa34251-cf08-44fa-8801-073f7f18cacf","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":54,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"f8944350-7903-410d-8210-ad77ad772e2a","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":54,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"a2607d66-2b20-4a69-a50b-8aef9b89e1ab","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":54,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"830f4825-bf40-430c-a473-02d9817a32ee","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":54,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"dd038801-6c3d-4064-b8be-1c38ac635534","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":54,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"3533b9a6-6795-4bc5-8ede-9c13c9dbab46","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":54,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"9e8a7b63-d8d3-41da-a11b-edf07e9bebcc","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":54,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"995066b9-6003-474e-8b06-b902e633e565","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":54,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"da48db22-b9dd-4609-95a8-a75c50148276","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":54,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"0fc35b7b-1268-4396-9ede-3a5e42f18305","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":54,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"4c3ace79-abcf-4936-a497-15418d57678c","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":54,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"eecebbe4-ce88-42b2-bc68-36f71541f17b","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":54,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"2187ca93-36e2-466f-b9f9-8c4d5c01fcda","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":54,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"c15d7289-0b44-4dc9-b53f-3f5b4a2ef230","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":54,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"27019bd2-7556-40ea-bbd7-699323fd8ae5","block_type":"box","text":"of the borrower.","page_number":54,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"5915f383-6eda-4746-b81d-d8d1046b8747","block_type":"box","text":"II-7","page_number":54,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2c0fde37-f801-4765-990b-3685b5c8d793","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de89ac3c-b378-4707-a3ab-4134b83fb378","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":55,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"d813a5be-cddb-4d4f-b38c-159fd0e0f75e","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":55,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"83e72555-7b47-4123-aa8e-edf70d98c10e","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":55,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"21c9039f-40e2-4993-973d-4495edd23ee2","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":55,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"70219ce0-966c-4ee1-94bb-61a2466e4cd4","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":55,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"2842428e-5082-461e-8868-74440ee625d7","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":55,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"6def7f24-b46a-4487-8b32-948e747edb8f","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":55,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"69956ab0-0015-4bab-98e9-f9352d3631b3","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":55,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"36538565-8f0d-4bf5-913f-2f87a6065fc3","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":55,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"898a5097-0270-4c20-bd08-44ab9b67c475","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":55,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"5f8da75b-2a76-4741-81ba-96724bb02f0b","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":55,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"bd42b86e-df64-43b6-b94c-ecb43cfe9ce2","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":55,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"6ed75330-9f0c-4d5c-9aa5-6968c31524ba","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":55,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"88dd8718-b8c6-452d-a0fe-5a303babf61a","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":55,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"37013950-ffb4-4b84-bcc3-a89c5d4bccdb","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":55,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"7cd01114-9720-4af7-be90-a5832cacde21","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":55,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"e1af3266-3ac6-4fcd-88d7-1d2e042ef0cb","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":55,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"3beec477-c21f-4362-88af-ce7416559401","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":55,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"2d570133-118d-40fb-925d-1bfb38a0b321","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":55,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"f269d015-b7e1-4dce-af56-d019f028bc1a","block_type":"box","text":"state law.","page_number":55,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"2456ab9f-db50-4ce7-8c7b-f0f00eb4e76d","block_type":"box","text":"Direct Lending. The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":55,"box":{"x":102,"y":377,"width":771,"height":12}},{"id":"ecd7763e-238d-4053-a331-f19807531a34","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":55,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"7a74fa52-1fdf-450c-869e-ce7b991e8488","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":55,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"45e78e45-988d-47b7-bdd1-61a93064b32e","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":55,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"b07c8de0-8b2a-409b-ab1c-c4601c66ea2f","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":55,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"4e71e7b9-fb53-4934-b2a1-84b3502c30d8","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":55,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"f072db3b-09e7-4385-a991-eca8e52a09b8","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":55,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"34a8c752-28ab-4cff-90a0-d63006c3a0ba","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":55,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"997b4061-94d3-430c-935e-e0687756c60e","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":55,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"5e8c6a8b-c38b-48d2-9fe3-35f404cad8bd","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":55,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"3f6854cd-11f2-4b13-87bd-72015f7bb325","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":55,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"906273e8-246e-4d0c-9377-54d2b103d91d","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":55,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"94b42df2-d271-4f98-90f7-cb00b0d34410","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":55,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"e6fbafa3-d61a-4689-8be4-a7a94f18013a","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":55,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"406d6dbe-ac71-42d5-bb2e-57a36e1701f0","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":55,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"bb0d893e-92b6-43ca-8386-4ac20b307e48","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":55,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"75780164-a63b-46f0-b77b-5461116ffd90","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":55,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"7633dbf1-098e-4cac-bd3f-8543cf0ce6b3","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":55,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"a084a611-643f-4a56-afa1-adcfb7ea5c7c","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":55,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"526c3de6-8575-4375-a0fb-c3941db083a0","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":55,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"9e30ab92-4165-44c0-a3c2-13c5b849d9e8","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":55,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"53bcf5ac-038f-4227-8736-7109ace6d7c6","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":55,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"09b9bb5c-562f-4ab1-80d1-b7bdd95764b8","block_type":"box","text":"Credit Linked Securities.","page_number":55,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"cf6d52e4-8730-459a-96d3-3a104461e154","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":55,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"ad92c08e-2c90-494e-aaa4-9d84ff9206d1","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":55,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"b58b65d3-4305-418f-95f6-f7dcdce836a0","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":55,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"6daba5d5-937c-4f88-aaf9-488c766706d9","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":55,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"5f68df0e-8897-4e99-be75-b60e8907d71a","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":55,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"fbdee90b-8837-42ee-93b1-5371c070648c","block_type":"box","text":"traditional income producing securities are not available.","page_number":55,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"92ccfe02-6005-47bd-a060-4a035d4fea54","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":55,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"f1762abf-cdac-4ae2-9fa8-2ab55e5ee374","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":55,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"23283347-8290-4c97-a14c-1583be2e1bc5","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":55,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"40f13da8-50ba-43f6-a3ee-3be4c039c110","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":55,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"6ff1881b-a36f-415c-b38b-0490334877ce","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":55,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"87ab484b-0d18-4004-98ac-d5ab9a837038","block_type":"box","text":"II-8","page_number":55,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"236fcc9c-35b5-45d4-a4f3-ee3a994cfd40","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a42ff04-99c7-4a79-a35a-1f5a3579c042","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":56,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"da0434c0-ac16-4f04-97a7-ac1465580ac8","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":56,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"95565b07-2133-429c-8466-9301a93b501a","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":56,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"62453a7d-e7ee-4087-aba0-cdd0a5150ab1","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":56,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"97b09d2d-53dd-4f90-bb24-85bce480879c","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":56,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"2375b3d9-d429-4637-82a2-c419f6152b06","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":56,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"a5c36a93-ac78-4491-b473-095f89fcc866","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":56,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"dc6f8754-b0ca-43d0-91d4-dd781a8eb8eb","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":56,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"d419ef1d-e991-4e72-acdf-b3d9b61afd33","block_type":"box","text":"investments.","page_number":56,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"9f28c30f-e2e9-4810-8461-c80fe9ef2eba","block_type":"box","text":"Debt Securities.","page_number":56,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"10d03a7b-e844-4b0e-b910-ac9f8d42a16e","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":56,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"5e2adcf0-3fe7-43d4-a207-5b338da6175c","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":56,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"6b110e2c-27fc-496b-a265-08c06f202ff9","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":56,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"e5d7475d-3daa-4180-bc17-4448e8b69e28","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":56,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"0c61a0da-ff4e-4b96-9548-8c800827dce1","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":56,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"74d24b89-d3ab-4d36-a797-621273ec3173","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":56,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"01a3f54f-1a84-4058-bee1-2d53afcbf995","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":56,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"c93a827f-b95f-4c9d-89d1-a37c67d81c69","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":56,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"18d8de21-edb3-48e5-8315-99f201a0051c","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":56,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"6a693b0e-05c0-4e18-9a28-e1be84f6490b","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":56,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"ee352f64-c25e-430e-9d70-2629936d0561","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":56,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"c6efbb88-28a1-45cb-9c03-a1fcf1c18d37","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":56,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"74fbb8ae-a313-48ad-a6ee-5ed005e63df0","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":56,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"7d27f122-eac8-4228-88e7-665e02180e0a","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":56,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"db11a9b0-29e0-4f04-aa96-bde48d47c15b","block_type":"box","text":"lose value. This is known as extension risk.","page_number":56,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"52ed87ab-4559-4597-bea1-0f3bb6410165","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":56,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"5badabcf-d694-459a-99a9-dd7ba4147f1d","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":56,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"08ad4217-3e35-40c5-998f-c7c92467e2f4","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":56,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"7c79b699-2b90-42a8-b4f6-eb1b1ec35125","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":56,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"472459e6-9e3b-46b1-ac78-8d6913d3a90a","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":56,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"7e210926-9ef2-4cf0-9c5e-ac997e292ead","block_type":"box","text":"Floating and Variable Rate Securities","page_number":56,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"60d88da0-7f3e-4414-87d5-d32da5a63fc7","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":56,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"5db7d5fb-a1a9-44de-aea0-4da8a7459685","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":56,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"9ebbc549-ad59-4554-9a03-6c688eba2334","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":56,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"b9a45cdf-43a1-4579-b346-73c8d92be6dd","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":56,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"39fa4478-e820-4c80-92da-7a9f98876fd9","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":56,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"3a5848c3-d071-49a1-9d0a-981a72611377","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":56,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"b1c31bb5-96ea-42f9-9517-7bf3ef864cae","block_type":"box","text":"market interest rates.","page_number":56,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"bb8d622a-ef2b-44f2-831a-1ef25eaf7887","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":56,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"31fea025-ea8c-422e-a4f1-f855215451cd","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":56,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"ef80b7b2-133e-47ef-b861-9bbc569c8ef5","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":56,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"b083b1d8-8e6e-46e5-89b1-318b80574d89","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":56,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"363eeea9-c191-413a-806d-ac03d1efc082","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":56,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"e867a33a-d932-4c26-bf36-143c47113c9a","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":56,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"fad166bb-6fc8-498f-a97b-68b883baadc1","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":56,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"789fc4b1-3c2b-4570-abee-03ae8f8cafbe","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":56,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"a2ff9b35-1d5b-43c3-a803-c9ca92acb62d","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":56,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"82219c77-4fd7-43b5-91b2-69bf593da785","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":56,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"fe0ecea4-c90c-411b-9dcb-71c706134560","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":56,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"550ab5fc-b778-4240-9547-8127220a6f62","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":56,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"76bf1e84-a14d-4e1c-a4bd-049e89c4d9ec","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":56,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"a9684dba-f4b9-4851-8fcf-94f0932b198a","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":56,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"7027fee0-e1ca-4db5-aef5-a10691ef57ea","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":56,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"9cfeaeea-e577-4d4f-8390-e1dc8aa6b99e","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":56,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"45de2519-5951-41c6-87f0-f9fbe10d92f1","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":56,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"46e04ef0-32ca-436a-9e4b-5b4756e5625f","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":56,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"8c5a2c97-b76c-4946-9253-6c234812088b","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":56,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"1eb8fde3-17c6-41dd-ae90-cdcd325f93ee","block_type":"box","text":"II-9","page_number":56,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"c51a1631-06f5-403c-a4f4-5780c3b68084","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d02d5375-7f8d-4aea-82a5-7a166041fd86","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":57,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"8ccf4cf1-324e-47bb-9835-9012458309a2","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":57,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"a58e8d81-d03a-4519-8042-c5902f799256","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":57,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"f28063ea-2a9e-4b8f-ab1b-bca78e0583ad","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":57,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"a4ce4536-e3ec-4a59-ae4f-c42ed6ab676e","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":57,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"aa98f9ab-6366-4e3b-b548-56c49efe960a","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":57,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"95e9aa07-c325-4f09-9438-b44ed50b1557","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":57,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"4b04c252-97a0-4c40-b766-f9fef772e301","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":57,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"abe93959-e8a5-43a9-a506-3a20a5e78561","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":57,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"aaa29d19-72e8-44a8-a167-4c74bc19bfb0","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":57,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"6f7d36eb-2e18-4ae0-b7be-815bf549cc64","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":57,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"2f8c5910-e5cd-41af-96f7-473539998b2c","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":57,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"446d482d-efa0-4441-be8b-3da79a62dafa","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":57,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"d0a6e818-aed2-4917-8be6-ae8fd2b592d1","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":57,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"22912ff5-9448-4dbe-b542-3a5a86920ff8","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":57,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"1dc6fd90-fe1c-4be8-a64f-49b94146e7d1","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":57,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"26bc2bee-aaba-4f2f-8ae0-1a850d172f97","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":57,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"36022f53-0694-4bbd-b514-dd391eedd2c1","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":57,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"08309ec4-d92d-4903-b4db-02c880ede431","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":57,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"78cbf094-cb09-4410-92ba-932a6e4ac1dd","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":57,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"66919254-37ad-414d-a126-9ca95302c0a4","block_type":"box","text":"United States.","page_number":57,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"aa281432-74d5-4def-9ea9-19098b1005ca","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":57,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"447e78f7-9ec0-47c5-b8a1-d6dfbf0322a4","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":57,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"d9359a5f-4839-4620-a3ad-4ae7f168db0e","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":57,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"d8f9e8aa-2b0f-4a7b-8e07-a2e67fe8c63a","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":57,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"84b30446-5d62-4fc9-9846-7400e6838c7f","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":57,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"c9c45ecf-7a7b-4e8e-b842-215b17e89c69","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":57,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"dcd3f5ca-cebc-4e14-8c22-68445af5be54","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (i.e., “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":57,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"6f0e0cc5-abad-4858-b8a4-6e5ac02c53c0","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":57,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"86ff82a2-2760-4ce6-83af-7c020f64c87a","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":57,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"4ba95ff5-4419-4ec9-9be0-2fe3823e4b83","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":57,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"ffcee5e2-d93d-481b-b041-24940d049173","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":57,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"efb09ad2-4b78-480b-a4c2-bef0fe443166","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":57,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"3481d76a-ac1c-498f-8e5a-1526ba844502","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":57,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"0c7e087e-9ace-4588-aae4-036c7767daec","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":57,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"0223d52c-6191-4441-a646-a82a6526c997","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":57,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"137399f0-8dfe-4903-9f48-78b3ac157e1b","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":57,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"9b6df1d5-951f-4fbc-8153-e742e12c7b03","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":57,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"c4190675-d1d5-469e-89fb-8c365643e829","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":57,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"6717710f-f23f-44ba-9818-c6b92c598aac","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":57,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"3d40d655-2803-4e46-953b-7067c22598dd","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":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"e9e9a5ad-79cc-4b49-a6ab-3d8c1aaa2489","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":57,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"f791c08e-8e26-44ee-a9eb-0aa7a99a83b8","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":57,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"e4b67654-90ef-45d2-9043-1d3b4a2aa42e","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":57,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"3e275c67-d7f9-4b7c-991b-d539665d92b2","block_type":"box","text":"risk than higher rated securities.","page_number":57,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"d227d56e-1415-4d4c-9b36-359c257a7bc2","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":57,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"4e442064-6a16-4476-b1cd-95959d2b3eb4","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"77fb79f4-29ef-46bf-ba0d-ed5efadf2b21","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":57,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"a6b0241d-1a55-422d-baed-59f6b20cd683","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":57,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"ba362809-c9e4-4662-bd9f-178903d98799","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":57,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"356475e8-5499-47c7-9410-2d90e9984a2b","block_type":"box","text":"unavailability of additional financing.","page_number":57,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"ac8a0755-8100-4818-b9b6-4cfa23d4c446","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"d5340e32-3668-449d-a046-3b8450a651ed","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":57,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"4f6f0d63-a0cb-4b29-8dfd-070ba4cca251","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":57,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"9cd4a924-45b1-4cb6-aec7-cdbda34d2f7e","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":57,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"f4f26616-a14e-4e18-818e-90919344ac67","block_type":"box","text":"II-10","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"746bca4c-d422-4d02-976f-8799428eea6d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce849bb0-7ef6-4d89-9567-69d1c8376888","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":58,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"b459a148-42bf-487d-8221-3294d6116155","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":58,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"3b75b5ea-f1f3-45f5-9fd5-a204de1b55d3","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"6eb45bf8-98e2-4a37-8913-cca0ef35eb8e","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":58,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"92349462-0903-47e0-8997-481513aac493","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":58,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"8045c3f5-df7f-4c70-8cc9-e983e37e58de","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":58,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"555b4948-9888-457a-b8e0-6219d1220901","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":58,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"d3f604b3-0d19-4eb0-b44b-bfaea65faf38","block_type":"box","text":"investors in higher rated securities.","page_number":58,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"6d279769-47e3-4655-8b9f-0c4dc5ca8007","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"9a359700-880a-4f8c-8dd0-f3016a5c9883","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":58,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"6bbba534-375b-42de-a22f-f3d4c960064a","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":58,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"45c037e2-94b4-4389-beb9-d9111a2fec5d","block_type":"box","text":"lower yields and may lose income.","page_number":58,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"b5884af3-0395-4441-a08c-e03f6b17da2a","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"9af78747-aa33-4c22-a497-7b0c8f379c31","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":58,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"c39dcd2a-feac-492c-aacb-b6a7fffb8323","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":58,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"9186bd00-c787-40d8-95f3-cffc0c9ebc2d","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"bd73fb2e-2b69-4166-9475-50987c4d8c63","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":58,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"82f8ea2f-0aa3-4b4d-8150-823efa89e85b","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":58,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"b9869d57-cb5b-48df-be5d-9dc3053f7239","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":58,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"171ebf21-3900-490a-a1f5-9a9911177403","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":58,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"3ca12e7a-f4d8-4f8c-8981-3c7a983ec54c","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":58,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"eccbf002-794e-4c8c-b24c-474f1a8b0037","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":58,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"e01b2874-7c1b-4a28-9856-4f5e893020ac","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":58,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"a45fd984-f80e-4d75-a647-4134f04ecf56","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"1a34d6dc-3279-4254-b945-d0b5a5cef263","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":58,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"3c70e2f6-f6dc-4e2d-be4d-ec7baab4a62b","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":58,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"e6f82940-9fcd-4543-ae79-a5fb4ceba4ad","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":58,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"22973c8a-07f0-4245-8563-771960c0baa4","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":58,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"15216aac-9f7e-42af-87c1-2fd06e40db76","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":58,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"e69f20f7-91ed-46c1-8a7d-20b0e4390435","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":58,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"873e412d-5bb8-4a3d-89ac-2d88d4cfbd08","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":58,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"b5a2e114-27a6-4834-b9a9-a76336067f7a","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":58,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"63acb165-768c-4a43-be89-79f93f97f6b2","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":58,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"08b71957-de43-49e6-a7c3-01b661225748","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":58,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"bcc15688-040d-4eb6-8803-222a448dac5f","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":58,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"a60adfb7-7d06-4e83-8c3c-bd4744f09a9f","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":58,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"f07c64ee-98ae-4622-97ea-c40a9ebb87d7","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":58,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"8737e7f3-0113-4ac7-b687-88e18f3f9f05","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":58,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"7eef3e8a-03f5-4f54-909d-d68cff994efc","block_type":"box","text":"role in determining such valuations.","page_number":58,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"52ccfa23-be72-4a2d-9e06-a37ceaeb962e","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"b68a50b6-d6cf-41bd-953e-c8a9c5ce34aa","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":58,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"effa6cdb-266c-4cb7-81b7-76b1814158fb","block_type":"box","text":"a defaulting issuer.","page_number":58,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"ea401f1f-85a4-4c02-9adc-67186a467ce3","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"c3572976-9a23-4bf4-93c3-5962ca511044","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":58,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"881c15e1-8ed1-47b3-ba13-f1cea6afbca7","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":58,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"44f3b3fe-6379-4b78-8e25-c86305284eac","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":58,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"63a23b70-22f5-4e85-9c6f-cf1c55597a5f","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":58,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"9089a32e-da96-4489-b615-9b908409d284","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":58,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"71cc0f96-cf77-46e3-b392-7df47533372a","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":58,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"024de4f5-716b-4187-a5f2-108f2bec5434","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":58,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"bcb169f2-bcb4-4517-ac79-618fc2d825e5","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":58,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"9a68bb94-9f53-43b5-b97c-23ba8155604b","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"5ed6ae31-79ef-498b-8347-c0aacf6c9e52","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":58,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"0ac15ce4-36e4-4378-92c4-dc9efa533b95","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":58,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"252e42db-422f-4875-aff5-578c0f95593b","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":58,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"68cf116e-fcd2-4206-bf13-0f50eff7ca9b","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":58,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"9c91cec8-17ee-4ce1-910d-0dcc7faa9344","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":58,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"d3a9511e-9531-457b-ad73-cad7025fed8c","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":58,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"d253e2dd-f9e1-416a-8522-6cbecc2fe8b0","block_type":"box","text":"higher-rated securities.","page_number":58,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"67576bd4-5ad3-44d9-b037-8f0ca5f9d0e7","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":58,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"642e88e4-a512-4266-a47f-5b864a77f67d","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":58,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"80a90177-4ea7-4016-ac05-446c8cdbc6fa","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":58,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"41a5b28d-eedf-435d-b07a-fb49420f5c40","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":58,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"059080ec-540b-41aa-bbfa-6fc71cba742e","block_type":"box","text":"II-11","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"36edd4db-00bc-40f9-b0f9-c83b509523b3","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c668b7c3-16aa-46e3-a94a-1815e6b7e1f9","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":59,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"d47d6aac-9b56-46b5-952c-71d4bf08d0de","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":59,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"545e7712-bfba-4675-88aa-567d879b7b98","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":59,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"76b617ed-2bdb-4a57-913b-ffcf3e6d4797","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":59,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"5dcd2f2d-b95f-4710-8734-2c6021e2159a","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":59,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"4c34e0e5-1bb1-493c-b333-9939ed8fd677","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":59,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"0effdb68-f241-435b-a5a6-901321c5572b","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":59,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"f0aa1bfb-0573-46b8-ae15-6ac5970743e3","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":59,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"e16d0186-99dd-4256-9592-f48a38acefa7","block_type":"box","text":"Mezzanine Investments.","page_number":59,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"66bb9972-726a-44d8-93bb-3dfc581c67f1","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":59,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"96f8053f-c277-4a9f-b225-c4a9856c4cec","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":59,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"d96c2abf-02a4-482f-a70e-c00ec4ce5a2b","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (e.g., with","page_number":59,"box":{"x":69,"y":219,"width":794,"height":11}},{"id":"4ad45270-5d0b-49b7-8aba-6ecfd1624dde","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":59,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"213afd2e-4a27-4cba-a845-2e6a8fb9272f","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":59,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"0ad00cbc-9286-4a56-a8a3-5c4a5cba04b3","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":59,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"d1d7b892-3942-426f-a51f-a2d45bbc7257","block_type":"box","text":"other obligations of the issuer.","page_number":59,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"0284402a-eea5-4619-a4a7-7a034457d373","block_type":"box","text":"Pay-in-kind Bonds.","page_number":59,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"b3ffba4e-d361-46f7-8c18-4ecf59833da4","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":59,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"f973fc1c-2e46-47fb-a653-a19d66cc4cfd","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":59,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"4defc5e7-0d54-45f5-9b1b-b85d846d687b","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":59,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"7b81dc3f-dac1-4550-b083-7afbcd4e0598","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":59,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"89a705d6-2d1b-49ec-96ba-668c52b5d3cc","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":59,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"097e346c-6953-41ac-a25f-938ac9ad8658","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":59,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"0571d77d-a4db-4073-b740-abc08e56a9e7","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":59,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"fca6685e-6bf9-4a4f-ac26-e7eda2683a2e","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":59,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"c2cc1b8c-db08-48af-9038-e9d526d63be7","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":59,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"ce920813-39ea-4ead-88ae-d32c51a8b797","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":59,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"c4517e89-935b-4e2a-b8e6-e81f5f71b8d1","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":59,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"ec1b3fe6-537e-4142-9942-06eacd5954f9","block_type":"box","text":"Supranational Entities.","page_number":59,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"03407c52-5c4f-4d29-a805-cc052df34c87","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":59,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"8876e4b3-3363-4aed-99cf-24c28f0bb222","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":59,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"ae6fc7c4-7d34-4def-b212-7ee9e3cdde04","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":59,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"93d8454d-78b8-4374-8f42-fd9d08227592","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":59,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"06867f0b-d8b3-4a20-b3c7-b2d62c37c0d9","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":59,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"be0f6fbb-b28b-4a11-8204-fad3300b508a","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":59,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"d4b7e545-a917-471f-bb93-b9fc529ef59b","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":59,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"4210f8d9-b69a-4e8c-b90a-5c3e1c428acf","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":59,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"46dadc78-bbf4-4866-bd5b-fb0bcfb4c878","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":59,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"d48e0a22-a6bb-481e-a36d-f1402e1f03d6","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":59,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"d382e6d3-d768-4daa-ab26-c70389a7d2ae","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":59,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"8062b853-7da5-4b7a-bd05-2e6c393ff1d1","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":59,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"045364cf-1041-4d33-bfe8-70c6c1399d98","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":59,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"141dadee-d45c-4ded-891e-809fd0f4803f","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":59,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"8000e876-9334-493f-a1a7-e18c524d7e89","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":59,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"92ea8ac0-30bf-48f0-930e-620cdf548c5d","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":59,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"883978b7-ae31-44b3-847b-e53befc756bf","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":59,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"38698fa9-dadb-4134-a275-117818691f58","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":59,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"8d595680-8cb7-433e-aebf-f27e8d00561b","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":59,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"5662049c-135a-45b3-b2eb-e13de5e22929","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":59,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"31b251a9-cbb6-41ac-821f-a33d6af36420","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":59,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"eb948ef5-02d2-42b4-830e-77a4793b74d1","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":59,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"8ac35ad3-181b-4e96-8419-3fb7c33dee37","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":59,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"63f5e1af-2fc9-42e3-a8ec-ee588374e42c","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":59,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"80d31ec1-cba8-4807-b25b-c063d226188c","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":59,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"97fd75e3-a3b7-46c5-8396-4c21eba13357","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":59,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"b6258e82-b1b5-47db-9c06-3fda444b045e","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":59,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"747ca04b-1fc7-4af2-b16f-bbb2229128a1","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":59,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"0daaab80-11d3-427d-bb85-a08a87d767c0","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":59,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"cf8b6518-4e84-4c1d-9233-151a87db03da","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":59,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"32c5d46b-35f1-4707-8bbf-efa056a6ef0c","block_type":"box","text":"II-12","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4cde2ce4-ee32-4890-94ab-1440523c310e","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27929617-fc82-4c78-8e83-e73e9a9208ec","block_type":"box","text":"Derivatives.","page_number":60,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"827e2d11-c202-4696-8c2a-4ec7e815f556","block_type":"box","text":"General.","page_number":60,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"e9d9fc73-5ead-4c33-808a-0222b6313288","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":60,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"94196c84-cd88-4ff5-ba25-ff2468930202","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies (including bitcoin and ether),","page_number":60,"box":{"x":68,"y":82,"width":815,"height":12}},{"id":"8bf5c7f2-cc2d-4c0f-96f6-f9bb5aecfc5f","block_type":"box","text":"interest rates, credit events or indices (a measure of value or rates, such as the S&P 500 Index or the prime lending","page_number":60,"box":{"x":70,"y":98,"width":831,"height":11}},{"id":"a28d21b5-4d8e-4679-8fa9-4a72dc89d4a7","block_type":"box","text":"rate) or other reference asset. Derivatives may allow a Fund to increase or decrease the level of risk to which the","page_number":60,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"5780409c-10a1-45da-a422-7f75c94d792f","block_type":"box","text":"Fund is exposed more quickly and efficiently than with other transactions. Certain Funds may use derivatives to","page_number":60,"box":{"x":70,"y":128,"width":793,"height":11}},{"id":"0b47e23d-f45c-423b-a27c-202550f03eee","block_type":"box","text":"maintain a portion of their long and short positions. Unless otherwise permitted, no Fund may use derivatives to gain","page_number":60,"box":{"x":69,"y":143,"width":837,"height":11}},{"id":"f4789aa6-674d-4088-83c8-86cdbf97424b","block_type":"box","text":"exposure to an asset or asset class it is prohibited by its investment restrictions from purchasing directly. As","page_number":60,"box":{"x":69,"y":158,"width":777,"height":11}},{"id":"367452b4-c0a2-4b51-b6c1-9d219fb86442","block_type":"box","text":"described below, derivatives can be used for hedging or speculative purposes. Funds will engage in transaction-level","page_number":60,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"9e4d735d-9116-4c97-af6e-05dc6ae7fb5c","block_type":"box","text":"payment netting, i.e., the payment obligations of derivatives contracts are netted against one another with the Fund","page_number":60,"box":{"x":70,"y":188,"width":822,"height":12}},{"id":"57fd4e08-76b9-4a0c-9108-0251307cbe32","block_type":"box","text":"receiving or paying, as the case may be, only the net amount of the two payment streams.","page_number":60,"box":{"x":69,"y":203,"width":642,"height":12}},{"id":"bae7fa63-beb9-42f1-8b10-8a236ea988fa","block_type":"box","text":"Hedging.","page_number":60,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"3c3d20bb-6aa2-4f56-a9e5-61248dca046c","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":60,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"2679062d-8d16-4d36-bc80-8459b407c019","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":60,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"eeb8828a-2a05-4a06-8b42-af33df8e97fd","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":60,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"d150676b-01b0-4fb8-bdf1-87cc9e2331c0","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":60,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"99014cbb-dffd-4e39-9d87-b847a51c3956","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":60,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"686fd2f5-1b0a-45e7-bf8b-1b961cd18f7e","block_type":"box","text":"correlation risk, i.e., the risk that changes in the value of the derivative will not match those of the holdings being","page_number":60,"box":{"x":69,"y":302,"width":809,"height":11}},{"id":"913b35a5-0fe8-4a91-9329-6efd55249145","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":60,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"ad9ffb3a-3a16-4c0e-b9d1-482b91934756","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":60,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"1bab36d1-ca35-4b4a-871e-976a39b91eb7","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":60,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"690b862a-b7ce-4ae7-ae2a-15339949dad4","block_type":"box","text":"Speculation.","page_number":60,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"40a23501-f54b-4d45-86da-e13c1c3d5847","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":60,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"bdede1bf-85b2-473b-b36c-163df924ba31","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":60,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"b045a264-7d68-445e-af88-d0b8f7595dd5","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":60,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"f5cbebd3-ff6b-4534-8d24-8bf97a766cdf","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":60,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"4b9c68d7-602b-47b8-a6b2-60edc23ef8a0","block_type":"box","text":"in certain cases may be unlimited.","page_number":60,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"32357e0c-e6ea-4e11-a6df-dffb652fb243","block_type":"box","text":"Regulation of Derivatives.","page_number":60,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"a893a022-6f3e-4e71-be69-9391ee217b4c","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act. Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":60,"box":{"x":102,"y":475,"width":798,"height":12}},{"id":"8af1af60-8738-4683-9f74-f234ccb141b9","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":60,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"9ddf0c90-0cfc-4373-8dfe-397ddc010c38","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":60,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"c7b4ce72-3527-4c00-b4e0-ee1e732f5aa6","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":60,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"dfd6866f-f837-497a-b440-c9482cd4f220","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":60,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"c4e70e85-51cc-4fd3-bdd1-da8ba55fa2f0","block_type":"box","text":"coverage”).","page_number":60,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"43eb4b35-aeae-462a-91ca-ad40399b8ead","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":60,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"64d93743-843d-40cc-9605-9a2efdec0ab7","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":60,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"cc792f92-6e34-401b-9f70-6e228a4dfece","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":60,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"caa9d127-0231-4a63-b8b9-5d98e2f31b5c","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":60,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"6afb0120-956c-4250-809f-e06dff2a957a","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":60,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"219dac38-81fe-4e33-9a96-7c9ae99e5ea5","block_type":"box","text":"financing transactions (e.g., recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":60,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"bc1fe64f-dd87-4935-9e62-622e6a07cdc2","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":60,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"def3c1d4-87ae-4934-80e4-d28cdc9e972a","block_type":"box","text":"securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":60,"box":{"x":69,"y":680,"width":811,"height":11}},{"id":"8daed55e-9947-4271-a256-f799020db547","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":60,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"1eacc144-d444-403b-be5d-e27795fd6382","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":60,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"89196a3b-171d-4c5d-a838-48ba466aeb54","block_type":"box","text":"Commitments”).","page_number":60,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"4ca00eeb-8026-429f-9864-0cde3beddf00","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":60,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"095eb025-2e5a-4a0b-9a78-463fd0815150","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":60,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"ec949bd4-935c-4970-996b-a05988ab7ada","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":60,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"751e2aff-15bc-4c86-8944-aa17052c19fa","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":60,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"f490e1aa-ad2f-4994-b2d6-391b43e6cf25","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":60,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"5c58e062-7270-471c-b68b-219adc6e4f24","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":60,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"2f62cae9-b267-41fc-b308-58a2c366f24c","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":60,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"74eaedec-271e-464b-93ee-15e2f8f1ed39","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":60,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"46fddd70-0488-4044-920b-82b859a8a0c7","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":60,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"04d9b1b2-95fa-48d6-b416-b9ebeab0d4dd","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":60,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"0f5e9c23-9a29-4606-9c48-e51ca148bcfe","block_type":"box","text":"II-13","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1f2de92e-0eaa-491d-ab1c-0782a422fe61","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5e22588-2418-4e67-b252-20d81b3cec48","block_type":"box","text":"Dodd-Frank Regulations.","page_number":61,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"cdb2168e-eb94-44f9-92a2-84921acac0d2","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":61,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"6bec4c33-c67f-418f-a912-76d13bcad5b4","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":61,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"c476f062-1a58-4d3a-91e0-c6ba076a0f20","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":61,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"ea87f5ea-eb80-42b2-91c6-9b5df5904ef8","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":61,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"43162290-dedc-4c00-98e8-6f3a7d66de8c","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":61,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"f28513f3-54ff-4b09-b349-9b118a1a5df8","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or ultimately be","page_number":61,"box":{"x":102,"y":128,"width":767,"height":11}},{"id":"a570cd15-f852-42c5-b155-be940e7c6999","block_type":"box","text":"required to register with the SEC as “security-based swap dealers”. Registered swap dealers and security-based","page_number":61,"box":{"x":69,"y":143,"width":799,"height":11}},{"id":"edf065e1-8dfe-4012-ab83-92f501a472de","block_type":"box","text":"swap dealers are subject to various regulatory requirements, including, but not limited to, margin, recordkeeping,","page_number":61,"box":{"x":69,"y":158,"width":806,"height":11}},{"id":"68a01357-8cf6-48b9-9bf0-8d5ddd69366f","block_type":"box","text":"reporting, transparency, position limits, limitations on conflicts of interest, business conduct standards, minimum","page_number":61,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"68e20d9d-c6bd-4ccd-ac5d-c93594853f6c","block_type":"box","text":"capital requirements and other regulatory requirements, which indirectly impact the Funds that enter into","page_number":61,"box":{"x":69,"y":188,"width":747,"height":12}},{"id":"3c1cda7c-4544-44ca-97cb-f21ad78187b1","block_type":"box","text":"transactions with them.","page_number":61,"box":{"x":68,"y":204,"width":167,"height":8}},{"id":"8e0a4180-594b-4152-8c15-a5d02330032c","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":61,"box":{"x":101,"y":226,"width":745,"height":11}},{"id":"f64bb260-2e7a-4010-b969-3fb06207734d","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":61,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"b37b516a-670a-44f8-bb3d-210188a73d33","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":61,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"d86d7411-8def-466f-96c4-0eb8d44108a7","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":61,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"1b9bb368-9918-47f9-8ad1-6aaf95e30c09","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":61,"box":{"x":69,"y":286,"width":794,"height":12}},{"id":"98a7b572-08f7-44b1-8ef5-365be4e23c9a","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":61,"box":{"x":69,"y":302,"width":815,"height":11}},{"id":"c4043d6a-8dc9-4506-a369-bf1de22d624e","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":61,"box":{"x":69,"y":317,"width":770,"height":11}},{"id":"10b38e1e-691f-4eb1-82ab-d3ba17c7c99e","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":61,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"7f2bdf0f-1abf-435d-a693-6fff86b1606a","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":61,"box":{"x":68,"y":347,"width":804,"height":11}},{"id":"1bd60264-4dcb-4be7-8077-e06003016fec","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":61,"box":{"x":69,"y":362,"width":839,"height":11}},{"id":"3d0390da-df9a-48a3-96e5-ef8fdbb40c5a","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":61,"box":{"x":69,"y":377,"width":814,"height":11}},{"id":"901d617e-961e-4db0-b30e-4d192bd861b9","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":61,"box":{"x":68,"y":392,"width":796,"height":12}},{"id":"6b445a0f-1ffa-45bd-bfe6-c948cd1305ca","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":61,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"e6fa7159-33b7-4bed-98d0-7ac1018bf72c","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":61,"box":{"x":69,"y":423,"width":370,"height":11}},{"id":"a9ea3e7e-43c8-4c78-9e3b-23707c5f5474","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":61,"box":{"x":101,"y":445,"width":766,"height":11}},{"id":"eba3a21d-9928-47e4-9db0-cd90bffb23a8","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":61,"box":{"x":69,"y":460,"width":826,"height":12}},{"id":"21691936-293f-48ac-b11d-088db9380fa0","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":61,"box":{"x":69,"y":475,"width":825,"height":12}},{"id":"c00536c2-8236-4df7-9b78-8cbf0bb06ed2","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":61,"box":{"x":70,"y":491,"width":791,"height":11}},{"id":"45ec9473-02d2-4c3f-8702-303949267b62","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":61,"box":{"x":69,"y":506,"width":793,"height":11}},{"id":"61273725-f57d-41ca-929f-f38bf04b9128","block_type":"box","text":"member.","page_number":61,"box":{"x":69,"y":521,"width":60,"height":9}},{"id":"30f5e380-3603-42f7-b6a5-b1380351ace8","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":61,"box":{"x":102,"y":544,"width":782,"height":11}},{"id":"c14992fe-fff6-4722-9323-c0a1e2cf2584","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":61,"box":{"x":69,"y":559,"width":837,"height":11}},{"id":"ad7d7f51-1d29-4992-9ebe-cf5278d779f0","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":61,"box":{"x":68,"y":574,"width":811,"height":11}},{"id":"c2bfbda2-1454-4020-91e2-5dc045c58d8f","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":61,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"0223a72c-fd0c-4df9-87bc-c06e3ddeed28","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":61,"box":{"x":70,"y":604,"width":754,"height":11}},{"id":"173b755f-8e3d-4f0e-94c6-9446b3867da2","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":61,"box":{"x":69,"y":619,"width":815,"height":11}},{"id":"39e431be-3c29-4c71-b764-1e4c61b5939d","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":61,"box":{"x":70,"y":634,"width":817,"height":12}},{"id":"91d8d56f-4614-4566-97d3-fe7fa8683066","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":61,"box":{"x":70,"y":649,"width":788,"height":12}},{"id":"fdf02ab4-8771-4a5f-8376-676fc3ae0d17","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":61,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"439c8de2-3ef7-459b-9525-c72b424f78bf","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":61,"box":{"x":70,"y":680,"width":829,"height":11}},{"id":"bb2422f8-ac28-4c9e-8b13-db4279e1f216","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":61,"box":{"x":68,"y":695,"width":346,"height":11}},{"id":"ef99cffa-9c45-47a6-8a96-d77f8bb71bbf","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":61,"box":{"x":101,"y":718,"width":762,"height":11}},{"id":"5f693840-daf9-4246-b2c6-cb9eebccb823","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":61,"box":{"x":69,"y":733,"width":820,"height":11}},{"id":"796e5fd8-81c2-433e-8d18-03361c9d9cc7","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":61,"box":{"x":69,"y":748,"width":816,"height":11}},{"id":"a447a086-51d6-449e-b3de-e94866b2073e","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":61,"box":{"x":69,"y":763,"width":825,"height":11}},{"id":"327bfb63-e45b-41aa-916d-e8d35cf9c227","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":61,"box":{"x":69,"y":778,"width":590,"height":11}},{"id":"0d77a383-d975-4e42-827b-2ce33324ec03","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":61,"box":{"x":101,"y":801,"width":783,"height":11}},{"id":"83f643f6-1d37-4eed-a871-15a66a88a012","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":61,"box":{"x":69,"y":816,"width":833,"height":11}},{"id":"7f60e48d-2a05-44be-9163-eb7b0ee29ffd","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":61,"box":{"x":68,"y":831,"width":837,"height":11}},{"id":"96ce78fc-8e01-46dd-bf6a-45d2dd2637db","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":61,"box":{"x":69,"y":846,"width":789,"height":11}},{"id":"176a1237-4ffb-4297-8ec9-2b26e225a546","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":61,"box":{"x":69,"y":861,"width":818,"height":11}},{"id":"44b011a8-13ed-416a-8249-098edf429f69","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":61,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"8fedf672-25eb-4870-8cfa-7fba18ad685e","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":61,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"5576a95d-e4b8-46ba-824f-0d88f0722043","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":61,"box":{"x":69,"y":906,"width":827,"height":12}},{"id":"c54a6ccf-929a-44b2-90eb-6b83ddae8087","block_type":"box","text":"II-14","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8b29040f-e874-4c9c-91a1-c4a93d23d78f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85c6d013-756a-4476-93c9-ba6bf9fe4ab4","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":62,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"6f1feb94-9c6c-4e74-8e4e-bee4786d02c0","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":62,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"1f41685e-9caa-48c9-81b4-995f564d6b97","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":62,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"1fe7d13f-8ca5-47a4-bfb1-b12de3b7f8b8","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":62,"box":{"x":69,"y":90,"width":785,"height":11}},{"id":"9d2e3edb-41d6-4587-b11d-366a541de9bb","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":62,"box":{"x":70,"y":105,"width":350,"height":11}},{"id":"6cf36c09-5cf5-4ec5-bdc8-c99bb7ba8a19","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":62,"box":{"x":101,"y":128,"width":256,"height":11}},{"id":"6b92d171-4c11-4a26-a89a-5f72577d3053","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":62,"box":{"x":364,"y":128,"width":513,"height":11}},{"id":"6d63bb16-d417-491c-8f63-07cf4dde6b11","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":62,"box":{"x":70,"y":143,"width":757,"height":11}},{"id":"1259f010-c462-43a2-a23e-35c96a6d76b4","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":62,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"c2ec5d7a-9887-407a-97fa-a84f83d27d60","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":62,"box":{"x":68,"y":173,"width":762,"height":11}},{"id":"79d3299f-efe4-4e69-b0a6-527477e11666","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":62,"box":{"x":69,"y":188,"width":825,"height":12}},{"id":"eeaa5054-59af-410b-a218-5ad77cd97453","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":62,"box":{"x":69,"y":203,"width":798,"height":12}},{"id":"2675758c-c540-4b61-9db3-62ea8dd97367","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":62,"box":{"x":70,"y":218,"width":785,"height":12}},{"id":"28e5ce8e-972e-4bb4-9707-5dfa5935114e","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":62,"box":{"x":69,"y":234,"width":787,"height":11}},{"id":"451d1712-91be-4b96-afd2-fc7ba5ca5075","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":62,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"43fc5e8e-aa48-4939-a5ff-9b66acfaceb4","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":62,"box":{"x":69,"y":264,"width":771,"height":11}},{"id":"19c68fdc-0178-4000-9099-8bd90f4690fa","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":62,"box":{"x":70,"y":279,"width":812,"height":11}},{"id":"b70df777-3cf8-4111-84e0-7bd2e8be0781","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":62,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"14617467-d5fc-44c8-9c17-c449bb31483a","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":62,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"9b5b6f30-6ff9-4a11-a03a-a3f32bfaeb67","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":62,"box":{"x":69,"y":324,"width":765,"height":12}},{"id":"0bc5a0b0-4a24-4e7e-b32e-eb320e02ab44","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":62,"box":{"x":69,"y":339,"width":720,"height":12}},{"id":"01730d9b-1ca4-4d30-90b3-04800b641411","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":62,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"25d68f42-5cb6-420a-a8ab-d14f975f64ed","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":62,"box":{"x":69,"y":377,"width":762,"height":12}},{"id":"b96ce458-79d8-49a8-aa64-1d699df32531","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":62,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"e74b2faa-4ed4-4619-a39f-9be8433d621e","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":62,"box":{"x":69,"y":407,"width":812,"height":12}},{"id":"0e2425f9-79db-40b6-9378-d1f8b2b8f896","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":62,"box":{"x":68,"y":423,"width":787,"height":11}},{"id":"7035c85a-e742-4aac-b55f-5304a47984cd","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":62,"box":{"x":69,"y":438,"width":810,"height":11}},{"id":"39d7c7b0-a49d-4e33-af95-003d9ecc30ba","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":62,"box":{"x":67,"y":453,"width":795,"height":11}},{"id":"670c7103-3180-4c3f-b5a6-c1c4ad6dc715","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":62,"box":{"x":70,"y":468,"width":835,"height":11}},{"id":"e2d8c9fd-eec8-4a66-930d-746860b11e5a","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":62,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"6ce0d8ce-7b36-4d68-aac8-43f259c30d07","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":62,"box":{"x":68,"y":498,"width":814,"height":11}},{"id":"5a0c5c57-2545-41ad-ab29-92b5e273a7ba","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":62,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"df227964-c89b-488a-ae3e-5e5c60f79c7e","block_type":"box","text":"collateral received under such contracts.","page_number":62,"box":{"x":69,"y":529,"width":288,"height":8}},{"id":"8c76c6a2-9dad-482e-aabf-e4607e919c80","block_type":"box","text":"Regulatory changes or actions may alter the nature of an investment in bitcoin or ether futures or restrict the use","page_number":62,"box":{"x":102,"y":551,"width":807,"height":11}},{"id":"8ad85ec1-34b1-4ae3-9120-f6d5269b5bd7","block_type":"box","text":"of bitcoin or ether or the operations of digital asset networks or exchanges on which bitcoin or ether trades in a","page_number":62,"box":{"x":69,"y":566,"width":793,"height":11}},{"id":"66744de6-d299-46ad-8923-546aee57960e","block_type":"box","text":"manner that adversely affects the price of such digital asset futures, which could adversely impact a Fund.","page_number":62,"box":{"x":69,"y":581,"width":759,"height":12}},{"id":"b8c528c3-4667-4a43-a321-1af5545571fa","block_type":"box","text":"Risk Factors in Derivatives.","page_number":62,"box":{"x":102,"y":604,"width":191,"height":9}},{"id":"823e1cbf-1cff-4764-97b9-71facaa2ee48","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":62,"box":{"x":101,"y":627,"width":597,"height":11}},{"id":"d7abc11c-77a8-4a47-8516-bcf123443f33","block_type":"box","text":"Correlation Risk","page_number":62,"box":{"x":102,"y":649,"width":114,"height":9}},{"id":"dab0f12b-0784-4fc2-83ce-209ba05384b2","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":62,"box":{"x":220,"y":649,"width":668,"height":12}},{"id":"19ab3abe-1a90-4d7f-a011-ed571f5c1d71","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":62,"box":{"x":68,"y":664,"width":837,"height":12}},{"id":"8b20dcd7-fa3c-433b-a05f-935cd6f08975","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":62,"box":{"x":68,"y":680,"width":818,"height":11}},{"id":"5d64e340-3d7e-4b38-b1ed-95ac52971470","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":62,"box":{"x":70,"y":695,"width":806,"height":11}},{"id":"e80c8194-b412-448e-b19e-7c4400e1eded","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":62,"box":{"x":69,"y":710,"width":725,"height":11}},{"id":"98538852-b52f-4f9f-b579-d0809a9afd0d","block_type":"box","text":"Counterpar ty Risk","page_number":62,"box":{"x":102,"y":733,"width":128,"height":11}},{"id":"b78017b1-0008-4287-8991-0d8095afb83d","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":62,"box":{"x":233,"y":733,"width":632,"height":11}},{"id":"fb827b2c-0ef7-4ff8-996c-d7238b0d4bde","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":62,"box":{"x":70,"y":748,"width":830,"height":11}},{"id":"c97bb371-e7ba-4808-9ade-6669e2d8ffaf","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":62,"box":{"x":69,"y":763,"width":824,"height":11}},{"id":"2c0353fe-dd8a-40b8-ad89-454baddbfa70","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":62,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"7e98f2fd-9088-41f5-a0b1-01557ba019ae","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":62,"box":{"x":70,"y":793,"width":831,"height":11}},{"id":"d6d4ef61-4e56-43e3-be61-f292e80c3eee","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":62,"box":{"x":69,"y":808,"width":806,"height":11}},{"id":"eb367687-c67a-4ef3-9a80-fbd8b17c0520","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":62,"box":{"x":69,"y":823,"width":803,"height":12}},{"id":"b381f395-213e-435e-a2f4-780761d1a46e","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":62,"box":{"x":70,"y":839,"width":760,"height":11}},{"id":"6432ac80-2642-4f9c-832a-9edb5f76cd42","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":62,"box":{"x":68,"y":853,"width":819,"height":12}},{"id":"80de7b22-cca3-460c-a4cd-7f43c5f62d98","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":62,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"119c6c62-c4c6-49fc-82f4-b376d16f5af2","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":62,"box":{"x":68,"y":884,"width":826,"height":11}},{"id":"dc6cda17-e44e-4c11-8f45-d8864cfaa942","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":62,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"ccdb7a84-9a25-4a07-a814-9f697de11c7e","block_type":"box","text":"II-15","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a402fd1-6444-4320-8a55-5be421a9d791","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd999b36-1ad9-4809-8fbf-58f64426ce18","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":63,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"975093a9-61d2-4898-9b66-b68569464c67","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":63,"box":{"x":70,"y":60,"width":816,"height":11}},{"id":"6b605a9c-a333-46a6-9fc0-451be0e32bf0","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":63,"box":{"x":70,"y":75,"width":771,"height":11}},{"id":"75ecf6ee-b83d-41a9-ab67-11c88968b285","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":63,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"a3cd8ee8-8e38-426e-998d-bfb1be97f635","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":63,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"81ea1b01-e576-4c05-b29c-e017cc3a3d21","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":63,"box":{"x":69,"y":120,"width":829,"height":12}},{"id":"4ec9ad93-2b9a-477d-9d42-52f4a8e0de86","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":63,"box":{"x":69,"y":135,"width":827,"height":12}},{"id":"6071eed6-25bd-41d1-a2a3-fd12e00f76ba","block_type":"box","text":"by the clearing member.","page_number":63,"box":{"x":69,"y":151,"width":169,"height":11}},{"id":"d33fa65b-cfc9-4baf-810c-7ceb6714217a","block_type":"box","text":"Credit Risk","page_number":63,"box":{"x":102,"y":173,"width":78,"height":9}},{"id":"ad76e1e6-765c-4a55-ac44-cba1fd76826e","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":63,"box":{"x":184,"y":173,"width":698,"height":11}},{"id":"2c1f75a2-5c4a-4607-a99d-71dd94b946f5","block_type":"box","text":"honor its financial obligations.","page_number":63,"box":{"x":69,"y":188,"width":213,"height":12}},{"id":"d2561870-789f-4ab3-b52b-7df4e47ede7d","block_type":"box","text":"Currency Risk","page_number":63,"box":{"x":102,"y":211,"width":98,"height":11}},{"id":"39f913c2-6194-4e88-904c-c5fce74a40ce","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":63,"box":{"x":204,"y":211,"width":669,"height":11}},{"id":"b7a059cf-ea82-445c-b0c2-d2a7fa8705c2","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":63,"box":{"x":68,"y":226,"width":300,"height":11}},{"id":"13ace74d-92c9-40b5-b356-7a8ba855aaa4","block_type":"box","text":"Illiquidity Risk","page_number":63,"box":{"x":102,"y":249,"width":98,"height":11}},{"id":"73ee26a0-2811-4d64-9bb2-277554a76c50","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":63,"box":{"x":204,"y":249,"width":693,"height":11}},{"id":"827b46a1-13fa-49c3-ae07-eee2cd98e5ab","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":63,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"9cca955a-6819-4666-90b0-48e9116c8925","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":63,"box":{"x":69,"y":279,"width":799,"height":11}},{"id":"cb9597fa-b757-4f01-9f24-8541908abff6","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":63,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"d3232c8b-b3c4-4f1a-ae66-08091a13d073","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":63,"box":{"x":70,"y":309,"width":824,"height":11}},{"id":"b0c80ec1-db69-4f3b-a2c4-2f6787bb2956","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":63,"box":{"x":70,"y":324,"width":830,"height":11}},{"id":"b6d2ca33-7f63-40d0-8688-5982ec9f8f6f","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":63,"box":{"x":70,"y":339,"width":762,"height":12}},{"id":"b5dd0ff6-66a5-4d11-af41-94440854b057","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":63,"box":{"x":70,"y":355,"width":827,"height":11}},{"id":"4c561e75-6acf-42e8-a9f5-37600459f8c7","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":63,"box":{"x":69,"y":370,"width":816,"height":11}},{"id":"01f556a6-294e-42a6-ac02-1a6fbf577ab8","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":63,"box":{"x":68,"y":385,"width":831,"height":11}},{"id":"d4c8cf18-30a2-497a-b84e-22eb6bb98c54","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":63,"box":{"x":69,"y":400,"width":828,"height":11}},{"id":"c336ff2e-4f75-460c-86d3-c4d40722153d","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":63,"box":{"x":68,"y":415,"width":809,"height":11}},{"id":"2dd645d5-05a5-49f0-bc0c-01a24d29f20c","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":63,"box":{"x":68,"y":430,"width":826,"height":11}},{"id":"468b15e2-801b-4bc7-a5f9-952884db732c","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":63,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"825a13fc-8e12-47fb-9948-b4e40f631bca","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":63,"box":{"x":68,"y":460,"width":838,"height":12}},{"id":"12e90c83-4184-49d4-b773-456f1560ae7d","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":63,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"4cf57854-9ae8-46de-87df-e5d2ad9847c0","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":63,"box":{"x":69,"y":491,"width":828,"height":11}},{"id":"f65fff63-054b-4e0a-bf89-4fbb0d42b447","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":63,"box":{"x":69,"y":506,"width":796,"height":11}},{"id":"ce7066ad-9c81-4506-9c4c-9340f6adea5c","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":63,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"0febfdc5-8fdf-48f4-adb6-5b57f37c86ab","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":63,"box":{"x":70,"y":536,"width":837,"height":11}},{"id":"ece19f72-7535-4b2b-98ba-ec14facd3a04","block_type":"box","text":"may be disadvantageous to do so. A Fund’s investment in digital asset futures may involve illiquidity risk, as digital","page_number":63,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"769ee161-1b7e-4bf0-8ea2-b86ed58726bc","block_type":"box","text":"asset futures are not as heavily traded as other futures given that the digital asset futures market is relatively new.","page_number":63,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"f83d0843-ddbc-41d4-97e8-f72eddd2c6a8","block_type":"box","text":"Index Risk","page_number":63,"box":{"x":102,"y":589,"width":73,"height":9}},{"id":"dbe99833-2556-4f70-a986-bcfac605749f","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":63,"box":{"x":179,"y":589,"width":714,"height":11}},{"id":"25d68cd9-f064-470e-b998-d776200ac1cd","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":63,"box":{"x":68,"y":604,"width":800,"height":11}},{"id":"cf30c5ab-8149-4ac6-812b-4a4891e6496d","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":63,"box":{"x":69,"y":619,"width":678,"height":11}},{"id":"3e6a5531-a5c1-4eb6-919e-a6c9c70ff960","block_type":"box","text":"Legal Risk","page_number":63,"box":{"x":102,"y":642,"width":73,"height":11}},{"id":"0ce060f8-1611-44fa-a0c8-ba5ef9d3b8b0","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":63,"box":{"x":179,"y":642,"width":717,"height":11}},{"id":"8337c74c-0dbe-4592-80ed-415306e2fa7f","block_type":"box","text":"or enforceability of a contract.","page_number":63,"box":{"x":69,"y":657,"width":211,"height":11}},{"id":"74923207-e78e-452d-a88b-425611cf4806","block_type":"box","text":"Leverage Risk","page_number":63,"box":{"x":102,"y":680,"width":99,"height":11}},{"id":"e61fdaf8-ce90-456e-9201-2e6e6264880d","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":63,"box":{"x":205,"y":680,"width":648,"height":11}},{"id":"79ce9839-5d50-4e5d-889d-18cebdb1496a","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":63,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"0ccecd3c-3d4e-4048-9f72-ead731c91f3e","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":63,"box":{"x":70,"y":710,"width":425,"height":11}},{"id":"b228a5fc-5b67-4541-9d87-88e12938cb89","block_type":"box","text":"Market Risk","page_number":63,"box":{"x":102,"y":733,"width":85,"height":9}},{"id":"43764d07-2e02-449d-b5e5-92008c641fd5","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":63,"box":{"x":191,"y":732,"width":716,"height":12}},{"id":"73c4ebcd-2493-481a-87de-828b900b4d37","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":63,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"8eceba18-8c32-489c-b443-1623f557013f","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":63,"box":{"x":69,"y":763,"width":794,"height":11}},{"id":"c4465483-15cd-4889-863d-7ff1e4b3de42","block_type":"box","text":"affected.","page_number":63,"box":{"x":69,"y":778,"width":62,"height":9}},{"id":"70282e8b-a272-4f20-8896-6148edd57c91","block_type":"box","text":"Operational Risk","page_number":63,"box":{"x":102,"y":801,"width":117,"height":11}},{"id":"cfde1c6a-9138-44cb-905e-7bd07b855dfb","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":63,"box":{"x":223,"y":801,"width":674,"height":11}},{"id":"7174a887-daa9-4dbf-b066-5476cb0a5384","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":63,"box":{"x":70,"y":816,"width":451,"height":11}},{"id":"6d1920e5-9025-454e-82a9-f158ba97d55c","block_type":"box","text":"Valuation Risk","page_number":63,"box":{"x":103,"y":839,"width":99,"height":8}},{"id":"9fba5478-0f4c-4f64-adb9-dc73cabfaf02","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":63,"box":{"x":206,"y":838,"width":701,"height":11}},{"id":"69d45fe8-e7ee-4531-b931-9defe3e8ffd3","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":63,"box":{"x":70,"y":853,"width":779,"height":12}},{"id":"c3881dac-c338-4bc0-adf2-2374c9faaf37","block_type":"box","text":"complex instruments or quote prices for them. Exchanges where bitcoin or ether is traded (which are the source of","page_number":63,"box":{"x":69,"y":869,"width":817,"height":11}},{"id":"24fd0fcc-059a-4ed9-b331-dddd512e6a80","block_type":"box","text":"the price(s) used to determine the cash settlement amount for a Fund’s bitcoin or ether futures) have experienced","page_number":63,"box":{"x":68,"y":884,"width":814,"height":11}},{"id":"e27740c6-ea0d-46b9-b63d-7c94cb2df99d","block_type":"box","text":"II-16","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"28f98420-a047-4678-8ddc-daed09b3b5e8","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea4cb9a4-6c29-46c5-8f80-18ed4fa9133f","block_type":"box","text":"technical and operational issues, making bitcoin or ether prices unavailable at times. In addition, the cash market in","page_number":64,"box":{"x":68,"y":45,"width":830,"height":11}},{"id":"6cab3b8f-754b-48ae-99d2-0b96f72b54fa","block_type":"box","text":"bitcoin or ether has been the target of fraud and manipulation, which could affect the pricing of bitcoin or ether","page_number":64,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"96402870-24af-425a-a2e1-5865486e2e47","block_type":"box","text":"futures contracts.","page_number":64,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"fe5be174-36de-4dbe-b7ee-8ebaccc0ba73","block_type":"box","text":"Volatility Risk","page_number":64,"box":{"x":103,"y":98,"width":93,"height":11}},{"id":"7f6c7bfa-83bc-4060-86dc-d2d09c56e565","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period. In","page_number":64,"box":{"x":200,"y":98,"width":670,"height":11}},{"id":"539ed9ea-7c8d-4006-a11a-d0a7451db247","block_type":"box","text":"particular, bitcoin, ether, bitcoin futures and ether futures have generally exhibited significant price volatility relative","page_number":64,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"f52d7bcc-9f11-41f8-a65a-a84f1c59f67d","block_type":"box","text":"to more traditional asset classes. Bitcoin and ether futures may also experience significant price volatility as a result","page_number":64,"box":{"x":68,"y":128,"width":835,"height":11}},{"id":"9dbf18c8-55db-42a0-911b-7fbdbb784c10","block_type":"box","text":"of the market fraud and manipulation noted above.","page_number":64,"box":{"x":69,"y":143,"width":361,"height":11}},{"id":"90925523-51b7-4221-9970-c2c1fd90a6dc","block_type":"box","text":"Types of Derivatives Transactions.","page_number":64,"box":{"x":103,"y":166,"width":240,"height":11}},{"id":"c34c3c73-bfb7-41cc-b463-241e757edacf","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":64,"box":{"x":101,"y":188,"width":771,"height":12}},{"id":"1e42911a-ee2c-48a0-afe9-5fe0d3050e45","block_type":"box","text":"including the following:","page_number":64,"box":{"x":70,"y":203,"width":159,"height":12}},{"id":"b8f12418-a902-4dd6-8b77-f713a3b33581","block_type":"box","text":"Futures.","page_number":64,"box":{"x":102,"y":226,"width":56,"height":9}},{"id":"d023ca72-f46b-4495-8dc6-11ac0e9a2fde","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":64,"box":{"x":101,"y":249,"width":791,"height":11}},{"id":"854a714b-96f4-4721-a94c-90ff854baf74","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":64,"box":{"x":69,"y":264,"width":799,"height":11}},{"id":"32582722-9561-477a-98c8-a6b0c6ce34d5","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":64,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"1253ae35-24c0-4c64-9051-515ed78412be","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":64,"box":{"x":69,"y":294,"width":838,"height":11}},{"id":"d5083b93-d704-47b8-aa6b-972ea8c6ad82","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":64,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"76257e1b-95c1-425e-a4b1-235453fdd8c7","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":64,"box":{"x":69,"y":324,"width":478,"height":11}},{"id":"2461abfc-013e-4f4e-a038-cfe741136387","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":64,"box":{"x":101,"y":347,"width":801,"height":11}},{"id":"fa1d0ab9-c8b5-463c-9f8d-e7759716848b","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":64,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"77d2b07c-fe1c-465c-bdd5-5df5f0caa27b","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":64,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"c1743ea2-aec2-405f-b680-5def9ec63dea","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":64,"box":{"x":68,"y":392,"width":830,"height":12}},{"id":"60f66492-0c57-4c59-813f-3b712f0d8bf3","block_type":"box","text":"of the futures contract.","page_number":64,"box":{"x":69,"y":407,"width":162,"height":9}},{"id":"64ffa8be-6dad-4c24-a1f3-240b912f97f2","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":64,"box":{"x":101,"y":430,"width":756,"height":11}},{"id":"62a46c0c-ec47-4c7d-8838-7e4d310c5097","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":64,"box":{"x":69,"y":446,"width":820,"height":10}},{"id":"7e204036-4845-4b76-a33a-00c6ac1825cf","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":64,"box":{"x":69,"y":460,"width":789,"height":12}},{"id":"0e2eceed-740b-4081-bb44-c64b0ef1ff12","block_type":"box","text":"relating to the futures position.","page_number":64,"box":{"x":69,"y":475,"width":219,"height":12}},{"id":"4456dcec-89eb-492b-a9a2-dbe3962c80fc","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":64,"box":{"x":102,"y":498,"width":757,"height":11}},{"id":"010eaece-547b-4847-9c4b-849f63b60666","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":64,"box":{"x":69,"y":513,"width":797,"height":12}},{"id":"c3a4cde4-95ec-4649-97b0-fa6f11a89131","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":64,"box":{"x":70,"y":528,"width":816,"height":12}},{"id":"2e536f94-0212-4af1-b5b0-f4a29d10af73","block_type":"box","text":"Regulations” above.","page_number":64,"box":{"x":70,"y":544,"width":140,"height":11}},{"id":"0307278b-b254-4aee-a125-d66d464f4cf1","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":64,"box":{"x":101,"y":566,"width":799,"height":11}},{"id":"ae35ffdf-2652-4906-b2bf-14430457433d","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":64,"box":{"x":69,"y":581,"width":818,"height":12}},{"id":"34901efb-97cd-4ad2-8bb0-dc5856b65da2","block_type":"box","text":"(i.e., conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":64,"box":{"x":69,"y":596,"width":831,"height":12}},{"id":"dcb512e4-d160-4064-910a-07cada7d5c0d","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":64,"box":{"x":69,"y":612,"width":830,"height":11}},{"id":"23f1fa35-307a-4dc6-a356-63965648af2a","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":64,"box":{"x":68,"y":627,"width":835,"height":11}},{"id":"e14d267e-0c12-425d-9567-c32616f3c9ed","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":64,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"063ca50f-1e8a-45df-9f91-ab1cb3488cff","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":64,"box":{"x":69,"y":657,"width":826,"height":11}},{"id":"5d5c93d6-b10b-4b06-ba63-42c07bf5b43b","block_type":"box","text":"Fund intends to purchase.","page_number":64,"box":{"x":70,"y":672,"width":183,"height":11}},{"id":"aee456bd-6e8e-4f1d-868d-0415a78ccf36","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":64,"box":{"x":101,"y":695,"width":768,"height":11}},{"id":"463e6d14-d10d-4af2-8a33-dc3865c773aa","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":64,"box":{"x":69,"y":710,"width":835,"height":11}},{"id":"9c5929e6-1977-44a0-8acb-05094dfd7165","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":64,"box":{"x":69,"y":725,"width":839,"height":11}},{"id":"caa28312-11f0-4dae-a93a-f26c78893dd2","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":64,"box":{"x":69,"y":740,"width":773,"height":11}},{"id":"c0d5db5c-25a0-43cd-bcad-7ef8ea81fa78","block_type":"box","text":"illiquidity.","page_number":64,"box":{"x":70,"y":755,"width":63,"height":11}},{"id":"37fd2dbc-4bdf-4148-ae26-825b0e904e6f","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":64,"box":{"x":102,"y":778,"width":757,"height":11}},{"id":"e63d0889-5b34-4858-a630-98895fc05a16","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":64,"box":{"x":70,"y":793,"width":807,"height":11}},{"id":"f3e5717e-f09d-4176-abd3-3714b3e90659","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":64,"box":{"x":70,"y":808,"width":269,"height":9}},{"id":"1c91cebb-f4d4-42f0-ae3e-d5d16f1151cf","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":64,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"939a4bdc-36b0-4bb0-af35-258b8c2aa771","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":64,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"3fe53b93-38ce-46d1-abf1-5216170b5d2e","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":64,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"88817d64-6765-4c1c-9a5a-7fba9c627cd7","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":64,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"100fbbba-d61b-4f81-abd0-14e0f55a1183","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":64,"box":{"x":68,"y":891,"width":657,"height":9}},{"id":"fa0acc0a-ac4a-487b-b175-a5b94a80fffa","block_type":"box","text":"II-17","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3f061da2-5c03-4758-92bf-b17eb49ce3a9","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd48d4e1-a6fb-4e2d-900c-53f2dd7d51a2","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":65,"box":{"x":101,"y":45,"width":792,"height":11}},{"id":"18c51fc2-f50f-4181-a0df-360ccafe4ebd","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":65,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"af0cd226-a5f4-4795-899d-5cd2bd5ff5c8","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":65,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"3b237c74-fe49-4500-a5b1-dab1d42b1ebd","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":65,"box":{"x":68,"y":90,"width":841,"height":11}},{"id":"fdc9471a-dcb5-4688-8c92-2c71b74b2e6b","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":65,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"946e6f21-f82e-4368-8555-c2e33425a431","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":65,"box":{"x":69,"y":120,"width":637,"height":12}},{"id":"00e5c31e-1c74-4a83-8669-d32a307b0815","block_type":"box","text":"Swap Agreements.","page_number":65,"box":{"x":102,"y":143,"width":131,"height":11}},{"id":"b583701e-c628-4e9f-befe-78071b9d6f8a","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":65,"box":{"x":101,"y":166,"width":782,"height":11}},{"id":"dd279c18-1ad2-4110-9eec-c94c6e150d0a","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":65,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"68e9932b-dee9-4a22-8924-329de7ed05b5","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":65,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"6e805cc1-d74f-4c00-a94b-74401440e74e","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":65,"box":{"x":69,"y":211,"width":792,"height":11}},{"id":"1e889810-aa8d-4744-806d-7d9ff32da3b0","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":65,"box":{"x":68,"y":226,"width":832,"height":11}},{"id":"2e31ecf2-77a4-4f37-a1be-74155255b50e","block_type":"box","text":"a “notional amount,” e.g., the return or increase in value of a particular dollar amount invested at a particular","page_number":65,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"4ef34530-5735-4654-8a4e-1175240ad935","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":65,"box":{"x":70,"y":256,"width":787,"height":12}},{"id":"f5523a41-807a-4fd1-bb22-aca4c0da9d5f","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":65,"box":{"x":69,"y":271,"width":762,"height":12}},{"id":"e873f700-d42b-4e8e-b3d8-04928e226840","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":65,"box":{"x":69,"y":287,"width":828,"height":11}},{"id":"b3827ed8-ede5-4518-9048-29f0ac38bb40","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":65,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"5412d9a0-716a-41bc-8794-c065ddea264b","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":65,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"301048a7-8d05-4600-b2a8-0a1eea0eb0e5","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":65,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"9a49c053-ef63-479f-92c6-8e21cd2fe8f1","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":65,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"2bb9e10d-f10d-418e-9dba-c33c93cf16e0","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":65,"box":{"x":68,"y":362,"width":763,"height":11}},{"id":"22e1642f-b283-4286-8cd3-006f69dc0520","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":65,"box":{"x":102,"y":385,"width":329,"height":11}},{"id":"f5d4a315-b066-44e8-9f6d-c948281b8aa5","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":65,"box":{"x":438,"y":385,"width":439,"height":11}},{"id":"ac3d860b-1b15-44d7-9552-f40c8112b5fb","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":65,"box":{"x":70,"y":400,"width":821,"height":11}},{"id":"2a508e7a-7205-472b-a50b-49849404c780","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":65,"box":{"x":70,"y":415,"width":831,"height":11}},{"id":"b010a73f-3a20-4f3b-997d-21f69f61258e","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":65,"box":{"x":69,"y":430,"width":801,"height":11}},{"id":"b03c21c2-9647-43f6-8170-c5993755a610","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":65,"box":{"x":69,"y":445,"width":829,"height":11}},{"id":"742b2fd7-29f0-4ec8-a74c-79e7f29d57dc","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":65,"box":{"x":68,"y":460,"width":798,"height":12}},{"id":"05aec882-f346-447b-ab7a-c7f6b6b2c1e9","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":65,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"95b3795c-d847-44cc-bfd1-36835e5f6cd3","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":65,"box":{"x":69,"y":491,"width":836,"height":11}},{"id":"abf18dde-98d3-4735-8d69-35f41c87dbac","block_type":"box","text":"index CDS.","page_number":65,"box":{"x":70,"y":506,"width":75,"height":9}},{"id":"6f169db2-cd2e-4413-b9ec-dd832166f02b","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":65,"box":{"x":102,"y":528,"width":800,"height":12}},{"id":"1be6f228-4307-4c8b-b0f5-bec7509981b8","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":65,"box":{"x":69,"y":544,"width":806,"height":9}},{"id":"d11a0100-a6de-40c9-8a5d-f2a36f89be2d","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":65,"box":{"x":69,"y":559,"width":828,"height":11}},{"id":"76a7e7be-8a0b-4b88-93ba-ccb2d74dac95","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":65,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"3afdb024-5f22-4644-b3ac-cea779c0c8a8","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":65,"box":{"x":70,"y":589,"width":812,"height":11}},{"id":"79096493-7946-40d9-ae4a-bdee993b152a","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":65,"box":{"x":69,"y":604,"width":798,"height":11}},{"id":"86980f32-d509-400f-a801-026f1b2cc1c4","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":65,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"aff5d133-5191-4a8f-a8d4-f8884fb3810c","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":65,"box":{"x":69,"y":634,"width":810,"height":12}},{"id":"f0d41071-2afe-4658-ba42-080ecd4eda07","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":65,"box":{"x":69,"y":649,"width":821,"height":12}},{"id":"eef97d74-f0e2-435c-bed3-d73b90c5a6de","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":65,"box":{"x":69,"y":664,"width":811,"height":11}},{"id":"5dfdb30a-fb74-4b57-a85f-21cf7b11a267","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":65,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"91ff5b0f-4fc5-461f-823b-3152e47468fb","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":65,"box":{"x":69,"y":695,"width":827,"height":11}},{"id":"308de0e5-ec2e-478c-b527-f739298538ed","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":65,"box":{"x":70,"y":710,"width":834,"height":10}},{"id":"d657e335-ae5d-4df9-a195-6f608633cfdd","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":65,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"72373c51-c874-43a1-980a-9c55f2427241","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":65,"box":{"x":69,"y":740,"width":809,"height":11}},{"id":"b63ee501-e643-4d88-9c1a-6ad6415ebfcc","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":65,"box":{"x":69,"y":755,"width":815,"height":11}},{"id":"fba2716a-60ff-4aad-baa4-adc2f991324c","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":65,"box":{"x":69,"y":771,"width":807,"height":10}},{"id":"8be2d758-1452-4bf6-a458-f90cf3ae3712","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":65,"box":{"x":69,"y":785,"width":832,"height":12}},{"id":"4bc48f6d-ccdc-4591-aa81-223def0d99f8","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":65,"box":{"x":70,"y":801,"width":711,"height":11}},{"id":"2e4a2f42-fc00-4fad-810e-acfd661385ed","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":65,"box":{"x":102,"y":823,"width":757,"height":11}},{"id":"a072e4d7-1f04-46dd-9be1-67af6530531c","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":65,"box":{"x":69,"y":838,"width":794,"height":12}},{"id":"49ba1f11-8998-4884-b678-b7b8fdd5c3d4","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":65,"box":{"x":69,"y":853,"width":830,"height":12}},{"id":"c40fd7b0-5219-4248-98b1-51884a842036","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":65,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"6de44c2c-5bb8-4eac-93b6-e48b27cd5cf8","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":65,"box":{"x":70,"y":884,"width":817,"height":11}},{"id":"bf057a8a-bd7d-4561-b8ca-15e19bca95e6","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":65,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"14f1ed4b-dd31-47b4-b5ee-117464c69eec","block_type":"box","text":"II-18","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fb867852-db5f-4e0a-9d24-96c2c78000d4","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"362f466b-6dd0-4b74-84c8-9db81fff6539","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":66,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"46b194ce-a5d4-4efe-b67c-ef19e95b2d2f","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":66,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"40981506-2c9f-4426-ace0-7ce81d26cdb9","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":66,"box":{"x":68,"y":75,"width":820,"height":9}},{"id":"14d1b173-a098-40e3-aee9-1136b8834c2b","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":66,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"c6ea6e82-768b-4796-badf-c3c2f0067b35","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":66,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"77365723-5c8c-4c92-b4d0-25c2eef4bc29","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":66,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"1e7abdca-fa7c-4b3b-92bd-09a5d20b7099","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":66,"box":{"x":69,"y":135,"width":766,"height":12}},{"id":"f480f6c6-c450-48a9-8576-8cba09bef2ad","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":66,"box":{"x":69,"y":151,"width":840,"height":11}},{"id":"1137fb7a-5e58-4e1a-9233-2d3f2658f110","block_type":"box","text":"conditions.","page_number":66,"box":{"x":69,"y":166,"width":76,"height":9}},{"id":"6a038fe4-dc22-48dd-ac86-bbc769f2b8ba","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":66,"box":{"x":102,"y":188,"width":762,"height":12}},{"id":"02406e9d-e141-4e97-a864-cba37ea43631","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":66,"box":{"x":69,"y":203,"width":824,"height":12}},{"id":"df027bdf-b8e9-4d56-a7bb-01f1dda55040","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":66,"box":{"x":69,"y":219,"width":727,"height":11}},{"id":"d99d9170-3a19-4bec-922f-f5216beda6e5","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":66,"box":{"x":69,"y":234,"width":819,"height":11}},{"id":"15fd2813-6488-4a4f-bc48-8d55caf92c68","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":66,"box":{"x":69,"y":249,"width":764,"height":11}},{"id":"b73b4728-c3a7-4885-90cb-c805f357f60d","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":66,"box":{"x":69,"y":264,"width":813,"height":11}},{"id":"80a72341-b379-4fba-9c0d-fc50612fbecb","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":66,"box":{"x":69,"y":279,"width":813,"height":11}},{"id":"bef9db59-906d-4af2-af08-1d7083908217","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":66,"box":{"x":69,"y":294,"width":759,"height":11}},{"id":"e7d643d0-d299-4fe6-a387-21592d6a7ad2","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":66,"box":{"x":70,"y":309,"width":828,"height":11}},{"id":"d99bf4a3-4211-4342-978b-c6c3833e6655","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":66,"box":{"x":68,"y":325,"width":355,"height":11}},{"id":"bb839691-2e0d-46e7-b639-5a1bd7000f47","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":66,"box":{"x":102,"y":347,"width":750,"height":11}},{"id":"6688effd-c622-455c-a0e8-75aee1436fb9","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":66,"box":{"x":70,"y":362,"width":836,"height":11}},{"id":"1c938488-830d-4083-9e4a-86eef584a749","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":66,"box":{"x":69,"y":377,"width":785,"height":11}},{"id":"ad355e4e-788e-4dcf-999f-6e56cddf503b","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":66,"box":{"x":69,"y":392,"width":825,"height":12}},{"id":"adcfe7db-cb3e-42fb-89e1-595a6b67718a","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":66,"box":{"x":69,"y":407,"width":814,"height":12}},{"id":"cd2bf700-e1d2-4e51-81f7-aa95b50316f5","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":66,"box":{"x":69,"y":423,"width":839,"height":11}},{"id":"43b2cf40-5e89-4323-820a-1f323c57c307","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":66,"box":{"x":69,"y":438,"width":495,"height":11}},{"id":"e0720ff2-7262-455d-8901-ec9fbb2e500b","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":66,"box":{"x":102,"y":460,"width":752,"height":12}},{"id":"669f9ef4-5389-4e0a-a33f-d6aa043fa201","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":66,"box":{"x":70,"y":475,"width":814,"height":12}},{"id":"099989ab-5412-4849-aa63-3274a2bebf9f","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":66,"box":{"x":70,"y":491,"width":520,"height":11}},{"id":"1caa7427-3ce3-4c13-935a-20ebef1c8074","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":66,"box":{"x":102,"y":513,"width":273,"height":11}},{"id":"6c0ba962-3c98-487f-a207-b9a586c95f05","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":66,"box":{"x":381,"y":513,"width":515,"height":11}},{"id":"fd8e995a-93a7-4449-83e1-0a1e01ec9863","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":66,"box":{"x":69,"y":528,"width":755,"height":12}},{"id":"ca828805-8e9b-4fd6-a8f6-34bc44bcb959","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":66,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"9934f0bd-8ced-4fc5-bb39-3308372d0609","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":66,"box":{"x":69,"y":559,"width":768,"height":11}},{"id":"29049fc7-a99b-4a55-abae-14f526f181d8","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":66,"box":{"x":70,"y":574,"width":461,"height":11}},{"id":"098f57c2-3e6d-4d42-9808-cf5d27daa12b","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":66,"box":{"x":102,"y":596,"width":748,"height":12}},{"id":"f7ce29e2-0db8-4e01-911e-1ee278970014","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":66,"box":{"x":69,"y":612,"width":799,"height":11}},{"id":"35f5f40f-81ec-40ce-ad9a-b62ff4ee7aa5","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":66,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"361c70ab-ae0a-41be-b8a3-a80054c2d7d9","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":66,"box":{"x":69,"y":642,"width":797,"height":11}},{"id":"15958fe5-c209-4ba0-bfc7-26e0356e39df","block_type":"box","text":"cleared interest rate swaps.","page_number":66,"box":{"x":69,"y":657,"width":198,"height":11}},{"id":"fe525968-cb1d-424c-a2e2-cc6435257d28","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":66,"box":{"x":101,"y":680,"width":766,"height":11}},{"id":"162455be-e0cd-4ed5-9651-43bd05b9af8e","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":66,"box":{"x":69,"y":695,"width":829,"height":11}},{"id":"f1f7b147-1514-420b-a57a-2b6fb3d293e6","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":66,"box":{"x":68,"y":710,"width":830,"height":11}},{"id":"85ddc66c-5f70-4f51-bed2-d25f7240875b","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":66,"box":{"x":70,"y":725,"width":822,"height":11}},{"id":"acf38e2d-6781-46c1-aef0-fc1e55122b45","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":66,"box":{"x":70,"y":740,"width":829,"height":11}},{"id":"8d35307f-1a64-4656-b66e-f6fbf2faf5eb","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":66,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"ce9977f7-3882-451c-b9b1-6e3a1735eb50","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":66,"box":{"x":69,"y":771,"width":801,"height":10}},{"id":"fe77c083-1fff-463f-a5b9-296475fe1817","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":66,"box":{"x":70,"y":786,"width":480,"height":10}},{"id":"e904c306-2588-4170-81a1-8724f93482d5","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":66,"box":{"x":102,"y":808,"width":790,"height":11}},{"id":"72ed733d-79c6-431d-96a8-136a6e34dca8","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":66,"box":{"x":68,"y":823,"width":825,"height":11}},{"id":"127d6154-1535-47fe-8b79-91ea66822d1b","block_type":"box","text":"or variable interest rate, index or asset.","page_number":66,"box":{"x":69,"y":839,"width":280,"height":10}},{"id":"06fecfb7-6f0a-4b42-a181-6787bd374fec","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":66,"box":{"x":101,"y":861,"width":780,"height":11}},{"id":"7294d1ae-e044-43aa-b5eb-ed952d2ae320","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":66,"box":{"x":70,"y":876,"width":805,"height":11}},{"id":"8ad5268e-9e9b-4821-a697-80899684513e","block_type":"box","text":"such interest rate floor.","page_number":66,"box":{"x":69,"y":891,"width":165,"height":9}},{"id":"41f981c4-b152-4947-9454-d92e5cf86102","block_type":"box","text":"II-19","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"33ab59a3-c1a4-4f20-bbe9-e395d3d14aab","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e01cd01b-361f-4b02-a269-1d09faf9d167","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":67,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"a0a2fa91-7fff-426e-97c2-6195d599bb61","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":67,"box":{"x":70,"y":60,"width":805,"height":11}},{"id":"03201b88-a8a3-49f2-a0f1-0eb73dac8887","block_type":"box","text":"such interest rate cap.","page_number":67,"box":{"x":69,"y":75,"width":159,"height":11}},{"id":"72eae4e9-220f-43e9-8031-3ab538b7a37f","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":67,"box":{"x":101,"y":98,"width":729,"height":11}},{"id":"0aa1caa3-cdc6-497a-9ac8-5315150a8f5d","block_type":"box","text":"commitments to pay or receive interest, e.g., an exchange of fixed rate payments for floating rate payments. For","page_number":67,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"bb5b0b96-bbe6-4924-bca6-21c8f0099cd6","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":67,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"ec69a12e-0bd9-4ee8-b803-c6d89b5c6443","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":67,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"95bf18d6-125c-4ab8-a345-288d05d633ea","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":67,"box":{"x":68,"y":158,"width":832,"height":11}},{"id":"9b2eec9b-3870-4e5c-bff8-bc55b0908898","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":67,"box":{"x":69,"y":173,"width":807,"height":11}},{"id":"75eece23-d5b7-4b2e-9d5a-7c3662bc1718","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":67,"box":{"x":69,"y":188,"width":836,"height":12}},{"id":"45ba4d12-f935-4fb1-bc50-3d920f8ef9e0","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":67,"box":{"x":69,"y":203,"width":826,"height":12}},{"id":"442c8fd1-9886-4e95-b13e-2a7a63c97a26","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":67,"box":{"x":69,"y":218,"width":840,"height":12}},{"id":"123ecb6c-5378-4916-a2cc-b3c8b7b7f656","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":67,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"b0f0fc1a-070d-461a-854f-8fc264cfe376","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":67,"box":{"x":68,"y":249,"width":646,"height":11}},{"id":"e7e161de-d396-40d5-9e62-b8da5d1076ba","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":67,"box":{"x":102,"y":271,"width":798,"height":12}},{"id":"b391fee0-3345-4a4d-a472-a6ad2820e5f3","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":67,"box":{"x":70,"y":287,"width":490,"height":11}},{"id":"b760b789-a476-499a-b411-66eac962bc2a","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":67,"box":{"x":102,"y":309,"width":791,"height":11}},{"id":"5eaa631e-ae53-4da7-a6a9-e32e20573b1f","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":67,"box":{"x":69,"y":324,"width":454,"height":9}},{"id":"f3ac7d22-552a-4076-a954-012113751bd1","block_type":"box","text":"Total Return Swaps.","page_number":67,"box":{"x":103,"y":347,"width":139,"height":11}},{"id":"102dc2cd-2794-4c74-adf3-651a9e4709b3","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":67,"box":{"x":249,"y":347,"width":634,"height":11}},{"id":"8f08e277-fa24-4008-b02e-b1d461c0df2a","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":67,"box":{"x":68,"y":362,"width":838,"height":11}},{"id":"e60eb104-23e1-48b1-a2ef-89994ec83933","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":67,"box":{"x":69,"y":377,"width":764,"height":12}},{"id":"86ca513e-0ea9-4e5d-9808-cf8880631e8c","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":67,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"976e14e8-0d51-4a68-a823-704c7ef8fd8c","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":67,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"011fae28-e477-41f1-b58e-78efe814e192","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":67,"box":{"x":68,"y":423,"width":838,"height":11}},{"id":"5eec240c-d003-4af5-8bfb-1848651df7d7","block_type":"box","text":"“contracts for difference.”","page_number":67,"box":{"x":70,"y":438,"width":184,"height":9}},{"id":"96bb89d9-c664-4ea0-8d9e-df69129d234d","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":67,"box":{"x":101,"y":461,"width":770,"height":11}},{"id":"9e15d0b2-a451-415d-b346-892454ea409e","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":67,"box":{"x":69,"y":475,"width":780,"height":12}},{"id":"cc1a699a-3e5c-43ea-99d9-6322ec137cd8","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":67,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"3a9c7143-c65b-4897-a299-f20beabb0e79","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":67,"box":{"x":69,"y":506,"width":816,"height":11}},{"id":"c791562a-3c66-4527-bb64-63e1856de47a","block_type":"box","text":"the notional amount of the swap.","page_number":67,"box":{"x":68,"y":521,"width":235,"height":11}},{"id":"446b1214-9578-48e1-ada5-0bcb86b14ced","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":67,"box":{"x":101,"y":543,"width":746,"height":12}},{"id":"f25cace3-79ab-4e2f-8b5d-cc8855913b55","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":67,"box":{"x":69,"y":559,"width":433,"height":11}},{"id":"067b75a6-93aa-470e-8d09-fdcd288c292e","block_type":"box","text":"Options.","page_number":67,"box":{"x":102,"y":581,"width":57,"height":11}},{"id":"0124de05-c127-453f-9f48-3b916a69083b","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":67,"box":{"x":102,"y":604,"width":319,"height":11}},{"id":"960a2848-3ab7-4671-882a-a2631c8d012b","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":67,"box":{"x":427,"y":604,"width":418,"height":11}},{"id":"553b6d29-6782-4f1a-b4a9-24e7bcf409ad","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":67,"box":{"x":69,"y":619,"width":838,"height":11}},{"id":"22d67b3c-afdf-44a3-a9ec-31d9d761abbb","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":67,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"0c74e16e-c38f-4f75-8202-fcf9ed805daf","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":67,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"8cdc31d2-2986-4a9e-861b-218aebcd8fca","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":67,"box":{"x":69,"y":664,"width":806,"height":12}},{"id":"cd6468ac-c901-4759-9a13-93f3512334eb","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":67,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"7d8b7097-1128-49cb-a622-b4440ad75f42","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":67,"box":{"x":69,"y":695,"width":822,"height":11}},{"id":"be2e7780-b0b9-4473-a14e-e2dc748633a4","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":67,"box":{"x":69,"y":710,"width":366,"height":11}},{"id":"bdf8bd1b-62a4-4426-99d1-41c230a7ebc1","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":67,"box":{"x":101,"y":732,"width":743,"height":12}},{"id":"ac66bc02-2a40-4a74-8389-ae47aaa6ced3","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":67,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"c10dad5e-8820-4fe5-9c94-ea9e2c7528ea","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":67,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"51bb6d41-1e9a-428c-8130-5971f79760e5","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":67,"box":{"x":69,"y":778,"width":827,"height":11}},{"id":"f7ffccb5-5330-41e8-ad6d-f2d249451d12","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":67,"box":{"x":69,"y":793,"width":812,"height":11}},{"id":"7a667557-36dd-488a-bf9a-c41bb5f7e855","block_type":"box","text":"OTC markets.","page_number":67,"box":{"x":69,"y":808,"width":95,"height":9}},{"id":"f68ab44a-5cf6-4a24-a517-24bc0c841994","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":67,"box":{"x":101,"y":831,"width":806,"height":11}},{"id":"2d5d6a52-fce3-4c76-967e-6770b5a08d87","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":67,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"33860afa-2fdf-45ae-aa28-2404a21be785","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":67,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"ba9dcf43-2aa6-415f-97be-f86c46ed0019","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":67,"box":{"x":70,"y":876,"width":831,"height":11}},{"id":"44e605a2-0725-4238-8e94-a6089fb40fde","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":67,"box":{"x":68,"y":891,"width":833,"height":12}},{"id":"e1b8e291-e7ef-4de2-8c5d-7161107d8ca2","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":67,"box":{"x":69,"y":907,"width":769,"height":11}},{"id":"02365389-9fbe-4dcd-83f2-4238af043b91","block_type":"box","text":"II-20","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6867a531-2305-48a5-85d3-bf8eafae1192","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fa2a2986-a925-49c3-9162-fa20df9b27f0","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":68,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"102af176-183d-414e-be86-97b42c3ee5c1","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":68,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"7c2155f1-aa49-4b0f-ac38-83ec9eb1be74","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":68,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"9229fb2d-2d0c-4b31-a358-cebc516d19e8","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":68,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"c7b74a50-f171-45d2-8120-3e879777d097","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":68,"box":{"x":68,"y":105,"width":822,"height":11}},{"id":"5ba91149-191b-4051-a278-4ce9c893795a","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":68,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"681e6202-de43-4865-932a-13445f5fdbe9","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":68,"box":{"x":69,"y":135,"width":836,"height":12}},{"id":"214d6c8a-7bf1-426a-bd7c-f224ee66aec0","block_type":"box","text":"terms.","page_number":68,"box":{"x":68,"y":151,"width":45,"height":8}},{"id":"4c242417-4065-4579-84a7-83ba9257dbeb","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":68,"box":{"x":102,"y":173,"width":801,"height":11}},{"id":"50bf7ba0-56ff-4d62-bd83-0bd513d41055","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":68,"box":{"x":69,"y":188,"width":826,"height":12}},{"id":"0db565e8-c573-41a6-afa3-2e35226a396a","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":68,"box":{"x":69,"y":203,"width":823,"height":12}},{"id":"6248481d-660d-4a39-b7ef-2a0ac83fef75","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":68,"box":{"x":69,"y":218,"width":762,"height":12}},{"id":"6a48cae9-a15c-47b6-a5f9-cf0a36ffb0c3","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":68,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"7874fb10-76b6-40ae-9d31-d37238c509cb","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":68,"box":{"x":69,"y":249,"width":837,"height":11}},{"id":"517e6b9a-d1e9-4022-8768-079d27744e71","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":68,"box":{"x":69,"y":264,"width":491,"height":11}},{"id":"7a53d324-5327-4b44-9ab0-ea5e26a0472c","block_type":"box","text":"Call Options.","page_number":68,"box":{"x":102,"y":287,"width":89,"height":10}},{"id":"f35da370-ff3c-4432-8347-12a7f832005e","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":68,"box":{"x":197,"y":286,"width":694,"height":12}},{"id":"e7e9e7ef-d225-472e-ae7b-03113fe8df87","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":68,"box":{"x":70,"y":302,"width":838,"height":11}},{"id":"36ec58f3-c327-4ef7-8aa6-d9b9bbbb97cd","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":68,"box":{"x":68,"y":317,"width":813,"height":11}},{"id":"1d40a31f-3081-463c-82f9-ace11177c051","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":68,"box":{"x":70,"y":332,"width":795,"height":11}},{"id":"47cba9f5-630f-4d37-8e29-7527e20b1fab","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":68,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"ea328f2b-2b44-43a3-94a7-4435430ce3e1","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":68,"box":{"x":69,"y":362,"width":830,"height":11}},{"id":"05cea400-fa8f-4229-851e-77bbafb9ba77","block_type":"box","text":"of the option.","page_number":68,"box":{"x":69,"y":377,"width":93,"height":11}},{"id":"4dbc6f8a-c456-4c78-9a3a-316868458c5f","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":68,"box":{"x":101,"y":400,"width":794,"height":11}},{"id":"8e8c4256-19cd-4b9d-b714-7c000360262e","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":68,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"f01e701a-848d-4942-b1d0-661f0f582f16","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":68,"box":{"x":69,"y":430,"width":839,"height":11}},{"id":"6db6e1bc-5b0a-434b-b730-b7710dd362e6","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":68,"box":{"x":70,"y":445,"width":778,"height":12}},{"id":"9c6adbea-4eaa-4896-9427-2c1a080342a3","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":68,"box":{"x":70,"y":460,"width":711,"height":12}},{"id":"6cb03c75-025c-41bd-9d51-95f8b5028ef3","block_type":"box","text":"A Fund may write (i.e., sell) covered call options on the securities or instruments in which it may invest and to","page_number":68,"box":{"x":101,"y":483,"width":782,"height":11}},{"id":"3fc2c32b-6e79-46ed-8823-6f5069b11bd2","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":68,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"5a56c4c9-7ae8-43db-a5c7-2691b5443d74","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":68,"box":{"x":68,"y":513,"width":827,"height":12}},{"id":"f1db40db-0679-4eaf-9b02-84a3a869f2e8","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":68,"box":{"x":69,"y":528,"width":797,"height":12}},{"id":"8ab650e4-097c-4db0-9613-c52dd1e53894","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":68,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"d111398d-44b8-4ef0-a5ed-af30d2822432","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":68,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"04bd0c48-8913-4810-9bce-e173eeed12ef","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":68,"box":{"x":70,"y":574,"width":825,"height":11}},{"id":"58451c05-11f8-4173-b32f-a6eae01e1f5f","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":68,"box":{"x":69,"y":589,"width":800,"height":11}},{"id":"37261cfd-a838-4e35-90e0-7db3bbeaa5f9","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":68,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"9246e005-e6cb-4a03-83e6-6ef543cc100a","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":68,"box":{"x":70,"y":619,"width":826,"height":11}},{"id":"f5f232b3-c12f-40b1-bab1-91b93198f035","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":68,"box":{"x":69,"y":634,"width":760,"height":12}},{"id":"45c23722-e8ed-448e-9d63-f34aa127665f","block_type":"box","text":"A Fund may write (i.e., sell) uncovered call options on securities or instruments in which it may invest but that","page_number":68,"box":{"x":101,"y":657,"width":783,"height":11}},{"id":"d090c6cd-0aba-4071-9b19-c4831f47f358","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":68,"box":{"x":69,"y":672,"width":834,"height":11}},{"id":"45f8b837-c04e-40fb-b98a-65dcaed59723","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":68,"box":{"x":69,"y":687,"width":830,"height":11}},{"id":"f2bb9999-f888-46e0-bf4a-299f287c8598","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":68,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"ae741f5c-7031-436f-8044-2503ba6baca2","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":68,"box":{"x":69,"y":717,"width":818,"height":12}},{"id":"ec24979d-72c0-4085-b722-b5ccd6b39a4e","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":68,"box":{"x":70,"y":732,"width":806,"height":12}},{"id":"290eb85f-113b-413b-9c79-dcca332e6dce","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":68,"box":{"x":69,"y":748,"width":839,"height":11}},{"id":"75222751-3083-4900-af42-07b29f502e05","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":68,"box":{"x":68,"y":763,"width":793,"height":11}},{"id":"f0d8916b-f299-49a9-ae3a-8f67f3516987","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":68,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c056ffbc-2ef0-484d-a720-b03d031eb0bb","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":68,"box":{"x":68,"y":793,"width":818,"height":11}},{"id":"6e9782bb-2a26-48e8-9b44-957404266d54","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":68,"box":{"x":68,"y":808,"width":825,"height":11}},{"id":"8a1b781e-1978-4297-8d81-7ca902147bae","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":68,"box":{"x":69,"y":823,"width":326,"height":11}},{"id":"7249efef-31d4-462c-98fa-684144fe5d6f","block_type":"box","text":"Put Options.","page_number":68,"box":{"x":102,"y":846,"width":85,"height":11}},{"id":"c591b45f-35f4-4d5d-85d4-bb102cc08858","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":68,"box":{"x":194,"y":846,"width":712,"height":11}},{"id":"4dc9f095-1c11-495e-99ed-37d0f8eb4660","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":68,"box":{"x":68,"y":861,"width":828,"height":11}},{"id":"3a1d7691-831f-4299-8bb1-87fcc220c28c","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":68,"box":{"x":69,"y":876,"width":816,"height":11}},{"id":"3318d9eb-4adc-462c-b5c9-deecbd84d4ec","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":68,"box":{"x":70,"y":891,"width":820,"height":12}},{"id":"fd133843-c60b-49f4-9e1f-39ac7eae69fd","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":68,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"a93fe083-3216-4656-af6d-8c879c058446","block_type":"box","text":"II-21","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a87d2ab4-23a6-40e7-9a4f-30f6967ab454","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b362179-9095-4ede-b44c-cc6dfb31097a","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":69,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"7887d513-f244-47ce-9c76-cc0bfbb588c5","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":69,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"76590f63-b647-4f8b-bf2f-74c0b9264148","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":69,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"a272cdf0-7ccb-490a-a951-e3c8bb49f61a","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":69,"box":{"x":69,"y":90,"width":785,"height":11}},{"id":"2a853850-d36d-44ef-b699-6a5f07a75396","block_type":"box","text":"purchase uncovered put options.","page_number":69,"box":{"x":70,"y":105,"width":231,"height":11}},{"id":"70f7b672-5779-4b9e-b0ea-721eea5cffce","block_type":"box","text":"A Fund also may write (i.e., sell) put options on the types of securities or instruments that may be held by the","page_number":69,"box":{"x":101,"y":128,"width":781,"height":11}},{"id":"e87c25ce-cb7e-4ba0-a375-cac6bfd5a73a","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":69,"box":{"x":70,"y":143,"width":675,"height":11}},{"id":"ff9bdc56-07ca-4f34-ab5f-0a8a9b1d5a7e","block_type":"box","text":"A Fund also may write (i.e., sell) uncovered put options on securities or instruments in which it may invest but","page_number":69,"box":{"x":101,"y":166,"width":783,"height":11}},{"id":"8a042cba-69cd-468a-ba27-45fa347d23c5","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":69,"box":{"x":68,"y":181,"width":789,"height":11}},{"id":"f6514a5f-3346-44a6-846c-5131fe404304","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":69,"box":{"x":69,"y":196,"width":773,"height":11}},{"id":"d59f70a5-52a7-4579-b176-22cfc1767f1a","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":69,"box":{"x":69,"y":211,"width":807,"height":11}},{"id":"46f1d507-92ff-4b18-9c27-070012da771f","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":69,"box":{"x":69,"y":226,"width":835,"height":11}},{"id":"9bf0bc98-fbf1-4751-9d91-9861787ed27a","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":69,"box":{"x":68,"y":241,"width":818,"height":11}},{"id":"89022310-4080-4d31-bab9-e9e54979a01f","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":69,"box":{"x":68,"y":256,"width":800,"height":12}},{"id":"5f696b29-97f8-4a63-882c-acc07ae7a8c2","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":69,"box":{"x":69,"y":272,"width":814,"height":10}},{"id":"0ccc7947-8ac0-42d9-a21d-0e53427bfb42","block_type":"box","text":"the exercise price.","page_number":69,"box":{"x":68,"y":287,"width":130,"height":10}},{"id":"57c1d2a1-80e9-44eb-b4ac-c9a8ef1f8d21","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":69,"box":{"x":102,"y":309,"width":556,"height":11}},{"id":"14795e98-d2b0-4ca4-a80f-9a6560b8b9f5","block_type":"box","text":"The following information relates","page_number":69,"box":{"x":664,"y":309,"width":232,"height":11}},{"id":"07eb5092-b65d-4c65-986e-97a2b2698c76","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":69,"box":{"x":68,"y":324,"width":784,"height":12}},{"id":"a92face2-d913-4c50-a968-93b811bc1f56","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":69,"box":{"x":69,"y":339,"width":840,"height":12}},{"id":"abeb9796-c5c4-4f99-af66-3017e8050068","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":69,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"7994e899-1931-476b-ac27-4451f2db591b","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":69,"box":{"x":70,"y":370,"width":781,"height":11}},{"id":"64fcadc0-0f53-4249-acdc-36d4703a68bf","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":69,"box":{"x":70,"y":385,"width":803,"height":11}},{"id":"c416c122-d505-48e8-874b-3a8eb2988961","block_type":"box","text":"market in order to maintain its “cover.”","page_number":69,"box":{"x":69,"y":400,"width":277,"height":9}},{"id":"bdf4fc9a-0dfb-4e8a-b2b3-9eb49ae7a0d3","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":69,"box":{"x":101,"y":423,"width":807,"height":11}},{"id":"25c9bf2a-11d9-420c-8359-b6e7376aec2e","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":69,"box":{"x":68,"y":438,"width":835,"height":11}},{"id":"58b65ee8-84d7-4d87-a4c2-ab822f0e5b19","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":69,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"cd5a74ba-363d-4aad-8897-5706f42c3161","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":69,"box":{"x":68,"y":468,"width":784,"height":11}},{"id":"2b58f0a0-259a-44e9-be2e-21c7ef98de01","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":69,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"06a0211b-e766-442a-9af8-23b82771b29f","block_type":"box","text":"and incur transaction costs.","page_number":69,"box":{"x":69,"y":498,"width":197,"height":9}},{"id":"f6fde05b-a6f1-4f32-b54e-0e34813e94f3","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":69,"box":{"x":102,"y":521,"width":235,"height":11}},{"id":"32636bb1-a3b8-4842-bb9d-934ba3b2847e","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":69,"box":{"x":343,"y":521,"width":563,"height":11}},{"id":"03a704b1-9e2e-4009-9d2b-f5c7333da285","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":69,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"375ea68a-3e2b-4d93-972c-a0a50a861cb6","block_type":"box","text":"designated future time on specified terms. A Fund may write (i.e., sell) and purchase put and call swaptions.","page_number":69,"box":{"x":69,"y":551,"width":773,"height":11}},{"id":"243f49f3-0d65-4223-8843-38eed9fd6894","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":69,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"842b365a-e7a8-47c3-9ee5-dde7e692a7c6","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":69,"box":{"x":70,"y":582,"width":793,"height":10}},{"id":"be541878-e23e-4048-8964-80289e7f034b","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":69,"box":{"x":70,"y":596,"width":802,"height":12}},{"id":"f08fecad-203a-4f5d-b378-364a2e858a29","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":69,"box":{"x":68,"y":612,"width":836,"height":11}},{"id":"03df6e54-7e77-4620-b5e9-5a25e31745e8","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":69,"box":{"x":68,"y":627,"width":832,"height":11}},{"id":"a646f3c2-0a5a-4165-bb48-7b90b42552b5","block_type":"box","text":"required, to be cleared.","page_number":69,"box":{"x":69,"y":642,"width":165,"height":11}},{"id":"4531e3e7-5063-4958-bece-a6a5fa201b7d","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":69,"box":{"x":101,"y":665,"width":760,"height":11}},{"id":"2ef52dbe-90da-4962-9ab0-a1149a5040c9","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":69,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"b3ae6757-c301-4bbd-9ddb-167c44c35765","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":69,"box":{"x":69,"y":695,"width":706,"height":11}},{"id":"85fbcd96-d136-410a-8b1e-5219a25133d4","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":69,"box":{"x":102,"y":718,"width":805,"height":11}},{"id":"303a65cb-a3a8-48a6-b679-8383d3e5c0d1","block_type":"box","text":"Derivatives” above.","page_number":69,"box":{"x":70,"y":733,"width":135,"height":9}},{"id":"e71939da-c90c-49f3-ae98-fc4336adb749","block_type":"box","text":"FLEX Options.","page_number":69,"box":{"x":102,"y":755,"width":96,"height":11}},{"id":"6cf0642c-77a9-4122-ad5c-5dc0bbe64a57","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":69,"box":{"x":206,"y":755,"width":702,"height":11}},{"id":"918d5141-efd7-4f79-a98e-4795ab31e360","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":69,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"922ebd6c-9e5c-4105-b583-fac44cbb4b0c","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":69,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"c8942a3b-7e3e-4c33-a260-2a5b9de87567","block_type":"box","text":"exercise prices, exercise styles (i.e., American-style, exercisable any time prior to the expiration date, or European","page_number":69,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"625c6e02-512d-4ad7-9eaa-14589ea4ff10","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":69,"box":{"x":69,"y":816,"width":768,"height":11}},{"id":"b34e6765-9eb8-44bf-bce1-dbd9a2a1729f","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":69,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"4d235ebe-a6b4-4cbc-90b7-39dcf6adfb86","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":69,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"13a41de7-9c03-4603-8d06-ab3d7f7fa915","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":69,"box":{"x":69,"y":861,"width":792,"height":11}},{"id":"1d261abd-49a5-48c2-80c3-ff3c20a1d039","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":69,"box":{"x":70,"y":876,"width":802,"height":11}},{"id":"9e7e888d-e5d6-4ae0-be3d-68f2d2ebd68e","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":69,"box":{"x":69,"y":891,"width":806,"height":11}},{"id":"845a0fb7-22f5-445c-b20a-31eb826baf9b","block_type":"box","text":"FLEX Option’s expiration date.","page_number":69,"box":{"x":70,"y":906,"width":211,"height":11}},{"id":"ea22686f-38ff-4f06-b8c4-3ef3ab391e6b","block_type":"box","text":"II-22","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"700f9926-38b0-4eac-bc44-e44a39a9a9b4","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28d24621-4960-4a0a-9e6a-112b5bca8b6a","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":70,"box":{"x":101,"y":45,"width":783,"height":11}},{"id":"29305b3c-f0a3-4dd9-967c-34cd3b363775","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":70,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"ecdd8811-0f0f-4ab5-96e5-cc39275e889d","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":70,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"5573b14e-56cc-474a-a8f1-fb1524693afa","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":70,"box":{"x":69,"y":90,"width":814,"height":11}},{"id":"a08d2eed-7b1f-4a45-955d-4f5917f1c98a","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":70,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"c9858f87-2b9f-4a82-8e82-2c9a3e3286c5","block_type":"box","text":"FLEX Options contracts.","page_number":70,"box":{"x":70,"y":120,"width":166,"height":11}},{"id":"1c656001-9d5a-4fce-a4d3-2bfac1ce598d","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":70,"box":{"x":102,"y":143,"width":748,"height":11}},{"id":"957f68ce-7a68-43bb-ade7-90502003015b","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":70,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"0102ef65-30a0-41f1-ad93-e9c63a75743f","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":70,"box":{"x":69,"y":173,"width":759,"height":11}},{"id":"a530d218-6b90-4624-bf46-42022d98e6de","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":70,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"45c726c5-9dc9-43e9-9ad7-0ca49b752cff","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":70,"box":{"x":70,"y":203,"width":829,"height":12}},{"id":"2db11d13-3394-47b6-83e4-1ac74f9ffe38","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":70,"box":{"x":69,"y":218,"width":821,"height":12}},{"id":"4acd624d-5bba-435b-b257-369db78c2f85","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":70,"box":{"x":68,"y":234,"width":835,"height":11}},{"id":"8d3adb97-59bb-40e2-aaeb-71df45cb1915","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":70,"box":{"x":68,"y":249,"width":829,"height":11}},{"id":"aca4916e-1f29-46df-9cbf-700e6eb91ce5","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":70,"box":{"x":68,"y":264,"width":753,"height":11}},{"id":"6ca669a3-0844-43b0-a749-47612f5f8e97","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":70,"box":{"x":70,"y":279,"width":806,"height":11}},{"id":"54ffbdd8-a5b6-499f-a58a-55489be3cec9","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":70,"box":{"x":69,"y":294,"width":593,"height":11}},{"id":"151536dd-24da-46f8-8cb6-d41cb8d6583f","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":70,"box":{"x":135,"y":317,"width":298,"height":11}},{"id":"d1eb738a-efd0-4aac-906d-0b3e3bfa97a5","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":70,"box":{"x":435,"y":317,"width":461,"height":11}},{"id":"9d025759-d0ab-4138-8524-166056b6c74b","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":70,"box":{"x":102,"y":332,"width":768,"height":11}},{"id":"e9746522-ec7f-4817-99ee-a79bc690fada","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":70,"box":{"x":102,"y":347,"width":775,"height":11}},{"id":"5eca2f7e-9c95-4766-b026-914d1355996d","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":70,"box":{"x":102,"y":362,"width":777,"height":11}},{"id":"bc1e6978-23ae-4ea0-ae0f-094df103f264","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":70,"box":{"x":102,"y":377,"width":799,"height":12}},{"id":"706eabea-0a89-4cb2-8f01-26df61e4032e","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":70,"box":{"x":102,"y":392,"width":777,"height":12}},{"id":"56fc84ca-2226-41f5-bf8e-f2b41fe02fdb","block_type":"box","text":"expire unexercised have no value.","page_number":70,"box":{"x":101,"y":408,"width":240,"height":10}},{"id":"ccf405b9-7087-4d19-beb2-d01461014340","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":70,"box":{"x":134,"y":430,"width":747,"height":11}},{"id":"a4c5457c-498a-496f-8c5b-6c4a06b9cb17","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":70,"box":{"x":101,"y":445,"width":792,"height":11}},{"id":"6af0baee-d403-4783-823a-d0147d42a498","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":70,"box":{"x":101,"y":460,"width":786,"height":12}},{"id":"2f907e1f-aed1-4dd8-af17-cfd235cf38cf","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":70,"box":{"x":101,"y":475,"width":798,"height":12}},{"id":"e1e7477d-2f04-4df4-bac8-f0891d6acbb9","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":70,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"5e044a4b-637d-4f99-bdcd-0e3513e2337c","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":70,"box":{"x":102,"y":506,"width":800,"height":11}},{"id":"b3b4bf86-b8d7-4305-a20c-1e9851fd2262","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":70,"box":{"x":102,"y":521,"width":774,"height":11}},{"id":"79785675-c0ff-483f-8548-39cec68ff852","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":70,"box":{"x":102,"y":536,"width":793,"height":11}},{"id":"57f9deae-8d49-4414-9b54-1d1ef434cee1","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":70,"box":{"x":102,"y":551,"width":764,"height":11}},{"id":"6734ddae-1d81-4827-ac33-908525190568","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":70,"box":{"x":102,"y":566,"width":430,"height":11}},{"id":"0ed5f9a1-0e93-4d70-9ce4-0967e62616ef","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":70,"box":{"x":134,"y":589,"width":740,"height":11}},{"id":"e4886bc9-8bc9-43e6-ac93-f065fa908878","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":70,"box":{"x":102,"y":604,"width":787,"height":11}},{"id":"edbef112-2576-49e8-aa65-0af7c9d4afe2","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":70,"box":{"x":102,"y":619,"width":790,"height":11}},{"id":"5c02c37b-ec5f-4cb2-8d1a-238ea5180456","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":70,"box":{"x":102,"y":634,"width":793,"height":12}},{"id":"2d202a1c-19b2-4030-8399-6ca8f0165e7f","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":70,"box":{"x":102,"y":649,"width":802,"height":12}},{"id":"07954de5-8c5d-461d-8afe-ba5b9205d8ad","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":70,"box":{"x":102,"y":664,"width":635,"height":12}},{"id":"c9aa269d-ad53-4c9e-943c-b0057efac9f8","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":70,"box":{"x":135,"y":687,"width":297,"height":11}},{"id":"6fc30655-46c2-4eee-89a5-1654fcfe7a27","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":70,"box":{"x":433,"y":687,"width":448,"height":11}},{"id":"a6079bac-e942-4ae6-a69c-c4f39a1d3d08","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":70,"box":{"x":101,"y":702,"width":777,"height":12}},{"id":"19f7766a-2da9-40bd-a882-33c211f0a77c","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":70,"box":{"x":101,"y":717,"width":753,"height":12}},{"id":"b6e8a940-2459-4526-977d-17cf71924098","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":70,"box":{"x":102,"y":732,"width":780,"height":12}},{"id":"df354675-fda0-4c34-a45e-fa641ea49835","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":70,"box":{"x":102,"y":748,"width":387,"height":11}},{"id":"125d08a2-b735-443c-b904-62baefafa688","block_type":"box","text":"Foreign Exchange Transactions.","page_number":70,"box":{"x":102,"y":771,"width":222,"height":11}},{"id":"24d0c492-57dd-4551-b16f-e8dae1e5fffa","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":70,"box":{"x":101,"y":793,"width":807,"height":11}},{"id":"5a25d32e-3e1f-46fc-8579-c9b45fc95fb2","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":70,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"576d085e-2612-4521-8583-d07982aec53f","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":70,"box":{"x":70,"y":823,"width":821,"height":12}},{"id":"32da4c76-3a74-4846-b181-fc63dd90add5","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":70,"box":{"x":69,"y":838,"width":792,"height":12}},{"id":"de4fb7e3-e826-4c2f-a616-65fd0f60f89e","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":70,"box":{"x":102,"y":861,"width":790,"height":11}},{"id":"921a221c-5bd8-433d-8072-1fad52c14a47","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":70,"box":{"x":70,"y":876,"width":830,"height":11}},{"id":"79fbc568-e480-4dcf-a37b-a0bc467a0477","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":70,"box":{"x":69,"y":891,"width":808,"height":12}},{"id":"6d9daa09-98c9-435d-b291-eeea48cbb005","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":70,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"f75d6e9b-2e00-45c9-95f5-7ae2146aedee","block_type":"box","text":"II-23","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8e9769d-cf85-4bda-81ec-359ba444dbb2","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0fa5e41b-5816-41ca-98d8-31f8484874e8","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":71,"box":{"x":68,"y":45,"width":823,"height":11}},{"id":"09b289f1-3c72-46d8-871a-01f9288dec36","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":71,"box":{"x":68,"y":60,"width":821,"height":11}},{"id":"4d63666f-1d50-4cdf-bfda-7e136793d656","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":71,"box":{"x":70,"y":75,"width":813,"height":11}},{"id":"9e5b30a1-8a09-4b66-9885-9c669ea29993","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":71,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"a9f642b9-d445-43a9-8986-ba0928f97abb","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":71,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"e4a9d3c6-3ae5-4799-ba38-2d2827be517f","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":71,"box":{"x":68,"y":120,"width":836,"height":12}},{"id":"2580a590-0b6e-4bee-a7a7-1dff8d55d87f","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":71,"box":{"x":68,"y":135,"width":794,"height":12}},{"id":"1a76d2a4-a2e2-4ae6-96c3-3e1ced8af0a2","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":71,"box":{"x":102,"y":158,"width":805,"height":11}},{"id":"8f1419ca-b148-42c6-87af-c622fd8b9bf2","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":71,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"eb4ec911-a3b5-4479-a709-0d6ad84597a7","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":71,"box":{"x":69,"y":188,"width":819,"height":12}},{"id":"84b18a55-612a-48ef-bc6c-be17527e1462","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":71,"box":{"x":70,"y":203,"width":773,"height":12}},{"id":"77f9540c-a4a1-4bef-9d96-46cc67163cae","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":71,"box":{"x":69,"y":219,"width":814,"height":11}},{"id":"bc50370f-68b7-47c2-80e1-8d219787d38f","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":71,"box":{"x":69,"y":234,"width":796,"height":11}},{"id":"bea71ac1-e689-4c54-95c6-d9731616098d","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":71,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"5936fb7f-c397-46d6-b6a1-ad0e6138df52","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":71,"box":{"x":70,"y":264,"width":798,"height":11}},{"id":"d6fe882b-5095-4c1a-ab5d-9112b7203015","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":71,"box":{"x":69,"y":279,"width":493,"height":11}},{"id":"18a5e4e5-aef5-4116-813f-af5816dcd5c8","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":71,"box":{"x":102,"y":302,"width":738,"height":11}},{"id":"4af36851-e3eb-4890-be28-427343e5f457","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":71,"box":{"x":69,"y":317,"width":814,"height":11}},{"id":"54590830-10cf-48f7-811a-6d213e08a925","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":71,"box":{"x":70,"y":332,"width":819,"height":11}},{"id":"b64f6a96-474d-4469-a2b3-9668fb81a44b","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":71,"box":{"x":69,"y":347,"width":834,"height":11}},{"id":"c866f1f6-594c-407d-a756-b3f7a1b7689e","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":71,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"0fbc0365-0981-4313-be04-5cfdb51d8067","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":71,"box":{"x":69,"y":377,"width":794,"height":11}},{"id":"91834715-63fb-4793-abb8-3a4427759a09","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":71,"box":{"x":69,"y":392,"width":841,"height":12}},{"id":"fee22e5a-dcba-44c7-895d-ae6fe9d445b9","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":71,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"3c9a7b4a-6af1-42a2-a1cf-e2c258cca4f4","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":71,"box":{"x":68,"y":423,"width":805,"height":11}},{"id":"c48b4be6-a8b6-4545-84ad-4aa46da3ff68","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":71,"box":{"x":68,"y":438,"width":401,"height":11}},{"id":"1adcd057-6ea5-4ca6-802b-566f238d7c0e","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":71,"box":{"x":102,"y":460,"width":738,"height":12}},{"id":"7cc3a467-f98d-40df-a0dc-f2088c51247c","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":71,"box":{"x":69,"y":476,"width":837,"height":11}},{"id":"30f0d941-5d7c-4f4c-8aca-627a653a50b5","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":71,"box":{"x":69,"y":491,"width":837,"height":11}},{"id":"08aeb7c7-174c-4a84-b1bd-63ed8ee33741","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":71,"box":{"x":69,"y":506,"width":800,"height":11}},{"id":"7a8a11ff-6346-40c1-a06e-dd0b42dbda12","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":71,"box":{"x":68,"y":521,"width":829,"height":11}},{"id":"f37f13f3-36dd-4387-8a3d-28acb1edd7cf","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":71,"box":{"x":68,"y":536,"width":753,"height":11}},{"id":"27b557b5-7939-4752-a600-7011463b8366","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":71,"box":{"x":68,"y":551,"width":811,"height":11}},{"id":"9c3a0c73-8855-44cc-8fa2-3cbb1e14c023","block_type":"box","text":"involved.","page_number":71,"box":{"x":70,"y":566,"width":59,"height":9}},{"id":"ab536695-9085-4f5f-924c-0ef3327b09a4","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":71,"box":{"x":101,"y":589,"width":803,"height":11}},{"id":"0c5e8473-9df5-4102-8702-79e6b9e0c97f","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":71,"box":{"x":69,"y":604,"width":785,"height":11}},{"id":"604076b3-c1cc-4a50-a0bc-2e8aec566f2b","block_type":"box","text":"denominated in such currency.","page_number":71,"box":{"x":69,"y":619,"width":216,"height":11}},{"id":"7b0f4e62-9f42-47df-8450-ae01b3e6aba8","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":71,"box":{"x":102,"y":642,"width":254,"height":11}},{"id":"d5d70516-d230-4abe-b4ef-bda3f1fa926e","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":71,"box":{"x":364,"y":642,"width":527,"height":11}},{"id":"9693318e-33e2-4991-bd59-da29b4bdccc4","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":71,"box":{"x":69,"y":657,"width":834,"height":11}},{"id":"083b60eb-ed55-431a-b762-3feb1eb72035","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":71,"box":{"x":68,"y":672,"width":798,"height":11}},{"id":"e04bd07f-2a52-46e0-8725-9d5fda9f049d","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":71,"box":{"x":68,"y":687,"width":817,"height":11}},{"id":"cc5622ad-dab0-452a-b3f9-aa9a35485f97","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":71,"box":{"x":70,"y":702,"width":830,"height":11}},{"id":"245306f8-69ee-4cd4-89bc-629faf058655","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":71,"box":{"x":69,"y":717,"width":774,"height":12}},{"id":"81a1c0d9-ca3b-4668-8e5b-ff4d0abd6a20","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":71,"box":{"x":70,"y":733,"width":828,"height":11}},{"id":"c8922b70-6f13-4ec2-b953-cf7faceb00c2","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":71,"box":{"x":69,"y":748,"width":830,"height":11}},{"id":"84ddb29b-fff6-49be-9fbc-901c9a5ab379","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":71,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"4cffb2d8-df04-4a15-a890-b95b03cf63b6","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":71,"box":{"x":69,"y":778,"width":819,"height":11}},{"id":"af03e9e1-7078-43fc-8125-6be80b428d9f","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":71,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"83cdcf41-76ec-4b16-b417-6d19de599300","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":71,"box":{"x":68,"y":808,"width":819,"height":11}},{"id":"c2af1ec0-d29b-4fb2-b291-f2172149e95f","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":71,"box":{"x":69,"y":823,"width":814,"height":12}},{"id":"731040a8-a374-428e-b259-cd3eb1969a66","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":71,"box":{"x":69,"y":839,"width":745,"height":11}},{"id":"250582d6-a199-493f-9244-d19d44dc6885","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":71,"box":{"x":69,"y":853,"width":832,"height":12}},{"id":"e7dafcbc-d582-4e25-a945-d95f7c974adf","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":71,"box":{"x":69,"y":869,"width":428,"height":11}},{"id":"ebe314ae-f6c6-46e4-9025-746f946fbab2","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":71,"box":{"x":101,"y":891,"width":797,"height":12}},{"id":"d200f7d9-fe6e-4a98-96a5-6576bfe0040e","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":71,"box":{"x":69,"y":906,"width":829,"height":12}},{"id":"64363cdf-9e36-432a-8365-06745a5822c3","block_type":"box","text":"II-24","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"986e5b77-a2e2-4348-91e8-aad156ef38e8","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1c7ce1d2-04b8-4cd8-89c0-8acdb52471c1","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":72,"box":{"x":70,"y":45,"width":838,"height":11}},{"id":"e9ea7d5a-e435-4415-9754-c08bd2e99d31","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":72,"box":{"x":69,"y":60,"width":823,"height":11}},{"id":"1a932859-2e23-405c-bf77-305630f4e52c","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":72,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"aa144a7b-806e-434a-900a-6a53d05ffc79","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":72,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"171590fb-906a-4397-9c4a-c36cc996e41a","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":72,"box":{"x":68,"y":105,"width":798,"height":11}},{"id":"5b3f0c32-10b8-4042-81b5-e8d807531609","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":72,"box":{"x":69,"y":120,"width":819,"height":12}},{"id":"7b2beceb-3e7a-4cb0-a573-723844a0ac2f","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":72,"box":{"x":69,"y":136,"width":691,"height":11}},{"id":"daae6464-3e8a-4346-9ec0-e079c6758872","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":72,"box":{"x":101,"y":158,"width":785,"height":11}},{"id":"a7dc21e4-79c3-4c5e-8fac-2de798e5529b","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":72,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"51830b3f-01d2-4b4b-b692-0950f552f443","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":72,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"e26f96aa-37d0-4748-abfa-17f359effb90","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":72,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"0a77304e-ba32-4b50-a06e-e7a48ab467b3","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":72,"box":{"x":70,"y":219,"width":823,"height":11}},{"id":"f109281a-c1ef-4b84-8882-57fc6b17a74a","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":72,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"66bc8646-8034-4951-a43f-fa9d22572aeb","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":72,"box":{"x":68,"y":249,"width":372,"height":11}},{"id":"2a464c14-1584-45d2-bb3c-0c3baaae3d64","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":72,"box":{"x":102,"y":271,"width":768,"height":12}},{"id":"a06552b4-74e9-4f65-bd13-322b20c5890f","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":72,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"00eddee9-2253-43b2-9c54-50c5537967b0","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":72,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"586a225e-f08f-4583-9697-4b82c0bcd173","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":72,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"060f7fa2-50b3-4bbf-8c29-c3f81eec0185","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":72,"box":{"x":69,"y":332,"width":839,"height":11}},{"id":"9a3a8f3d-c25a-4d40-af4d-ef2bac9d2f97","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":72,"box":{"x":68,"y":347,"width":812,"height":11}},{"id":"9d4b3cd7-0b48-4614-b4f0-948251129900","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":72,"box":{"x":69,"y":362,"width":821,"height":11}},{"id":"684cc3b8-0a6f-4162-b850-e9a645010a5d","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":72,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"2d4d4015-57d2-4edb-bc72-c5195a3c7df2","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":72,"box":{"x":68,"y":392,"width":802,"height":12}},{"id":"f8ec07f1-bc0d-4de8-8a84-4b662f0dd3b6","block_type":"box","text":"traded.","page_number":72,"box":{"x":68,"y":408,"width":49,"height":8}},{"id":"b7407f99-3b61-429f-aa49-e30ec5fa2e41","block_type":"box","text":"Currency Futures.","page_number":72,"box":{"x":102,"y":430,"width":123,"height":11}},{"id":"194b150c-c0d8-4c0e-9e6b-f3993d65aad6","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":72,"box":{"x":232,"y":430,"width":654,"height":11}},{"id":"625a12e3-6fb9-4cc2-8439-b9581ba326ae","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":72,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"a32e308d-57c3-46a3-8889-0a8e277cc30d","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":72,"box":{"x":69,"y":460,"width":774,"height":12}},{"id":"31df3870-d802-4fa4-8559-bb84f1f48036","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":72,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"2a6a3a93-8fe2-453d-9ad1-fd90352afbe4","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":72,"box":{"x":69,"y":491,"width":269,"height":9}},{"id":"57ad4f59-b844-4e1f-a9e9-fea84ab930f9","block_type":"box","text":"Currency Options.","page_number":72,"box":{"x":102,"y":513,"width":125,"height":11}},{"id":"d766e5cc-9d83-4755-9fa2-98850daef792","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":72,"box":{"x":233,"y":513,"width":654,"height":12}},{"id":"76ac60da-8164-405a-a54d-bb9645f2f085","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":72,"box":{"x":68,"y":528,"width":776,"height":12}},{"id":"b12b31db-8147-410a-8441-5f934ef514fd","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":72,"box":{"x":70,"y":543,"width":825,"height":12}},{"id":"4e7d5ad5-e375-4cb6-891d-aa5fa99017b6","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":72,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"a6d6c150-3865-4ae4-be5e-00b6f77e34d9","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":72,"box":{"x":68,"y":574,"width":820,"height":11}},{"id":"d1abcb4f-c4be-4dd0-bf12-d6a9d542ff33","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":72,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"8ed027ad-45e5-4853-96d1-b809b46553c2","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":72,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"55e0c3c3-9075-4d3b-97a3-6a1cc2ad693f","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":72,"box":{"x":69,"y":619,"width":813,"height":11}},{"id":"ed4abbd2-a183-41c1-ba63-5af92cd457d4","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":72,"box":{"x":69,"y":634,"width":826,"height":11}},{"id":"2317b0c1-341b-4fbb-9625-dbb3203aac60","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":72,"box":{"x":69,"y":649,"width":776,"height":12}},{"id":"c85fe128-8b39-49d3-8bcd-86d1b97aceac","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":72,"box":{"x":69,"y":665,"width":483,"height":11}},{"id":"56acddeb-eb6d-4d4e-9f94-630f596f8310","block_type":"box","text":"Currency Swaps.","page_number":72,"box":{"x":102,"y":687,"width":117,"height":11}},{"id":"1276cc36-ff78-4c99-909f-0b38034a6b48","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":72,"box":{"x":225,"y":687,"width":652,"height":11}},{"id":"081fbbef-72c0-4221-83b1-e74cf812716b","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":72,"box":{"x":69,"y":702,"width":799,"height":12}},{"id":"2b229472-a940-47b8-8ef4-fe43930cad75","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":72,"box":{"x":69,"y":717,"width":812,"height":12}},{"id":"02e82f9c-ae50-4d88-a7ae-7230f46922c6","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":72,"box":{"x":69,"y":732,"width":836,"height":12}},{"id":"f5af7f75-19c4-46b9-8ab6-e00552ef7c10","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":72,"box":{"x":69,"y":748,"width":800,"height":11}},{"id":"0d5c27f1-16e9-4baa-93ae-c22cc50e774d","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":72,"box":{"x":69,"y":763,"width":810,"height":11}},{"id":"f11cc132-e533-4d66-b0ab-e71af079f4be","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":72,"box":{"x":69,"y":778,"width":393,"height":11}},{"id":"9adf6b66-3a18-445c-93c4-6954c9e81810","block_type":"box","text":"Digital Asset Exposure.","page_number":72,"box":{"x":102,"y":801,"width":170,"height":11}},{"id":"444d3592-5615-45ff-9574-df5ec2e19216","block_type":"box","text":"Digital assets, such as bitcoin and ether, are created and transmitted through the","page_number":72,"box":{"x":279,"y":801,"width":582,"height":11}},{"id":"411005cd-18bb-40c4-8bed-7e063ae5e0ab","block_type":"box","text":"operations of peer-to-peer networks of computers, known as nodes, that operate on cryptographic computer-code","page_number":72,"box":{"x":69,"y":816,"width":806,"height":11}},{"id":"1e46cb56-e505-410e-a2f5-9469a9449e4f","block_type":"box","text":"based logic, called a protocol. Digital assets are part of a new and rapidly changing industry, and the further","page_number":72,"box":{"x":69,"y":831,"width":773,"height":11}},{"id":"d50ffcd3-e1f7-434c-bb5f-9ed36a93775a","block_type":"box","text":"development of digital asset networks is subject to a variety of factors that are difficult to evaluate. Digital assets are","page_number":72,"box":{"x":69,"y":846,"width":839,"height":11}},{"id":"1be0f71a-0eb0-4ca2-9b0e-c7fa8fda732a","block_type":"box","text":"relatively new assets with limited histories.","page_number":72,"box":{"x":69,"y":861,"width":305,"height":11}},{"id":"e767b982-6aa1-45f2-b31c-3b7e6048153f","block_type":"box","text":"Risks Related to Digital Assets.","page_number":72,"box":{"x":102,"y":884,"width":223,"height":11}},{"id":"0d77b39e-1044-4256-8872-169059137b00","block_type":"box","text":"Digital assets were only introduced within the past 15 years, and the value of","page_number":72,"box":{"x":332,"y":884,"width":552,"height":11}},{"id":"0ed4b80c-d2d1-4c07-af7b-dce362aac672","block_type":"box","text":"such digital assets is subject to a number of factors relating to the capabilities and development of blockchain","page_number":72,"box":{"x":69,"y":899,"width":788,"height":11}},{"id":"85619fab-6cb6-47e4-a200-833e58c533ea","block_type":"box","text":"II-25","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4de37648-bda4-43c1-87c9-818c05cb2d10","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"11a9e878-a532-4fe8-b1e0-83bed45d24f1","block_type":"box","text":"technologies, such as the recentness of their development, their dependence on the internet and other technologies,","page_number":73,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"b31c5bec-0c88-452b-bcd4-22a474254172","block_type":"box","text":"their dependence on the role played by users, developers, miners and validators and the potential for malicious","page_number":73,"box":{"x":68,"y":60,"width":795,"height":11}},{"id":"39286e71-7582-4bd4-bb79-93b720217f91","block_type":"box","text":"activity. Given the recentness of the development of digital asset networks, digital assets may not function as","page_number":73,"box":{"x":69,"y":75,"width":782,"height":11}},{"id":"e7c6c2db-c738-4392-9537-228895ef5ba7","block_type":"box","text":"intended and parties may be unwilling to use digital assets, which would dampen the growth, if any, of digital asset","page_number":73,"box":{"x":70,"y":90,"width":820,"height":11}},{"id":"a10ff843-eb13-4378-9de2-d9d261c6ba22","block_type":"box","text":"networks.","page_number":73,"box":{"x":69,"y":105,"width":67,"height":9}},{"id":"85673f36-e72a-4729-8d75-ebebeac901f8","block_type":"box","text":"The trading prices of many digital assets, including bitcoin and ether, have experienced extreme volatility in","page_number":73,"box":{"x":101,"y":128,"width":762,"height":11}},{"id":"de6c11b1-f882-4249-ab9a-ed377cb5aae4","block_type":"box","text":"recent periods and may continue to do so. Extreme volatility in the future, including further declines in the trading","page_number":73,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"673eac65-e0e9-494e-9cf8-517f8150d04f","block_type":"box","text":"prices of bitcoin and ether, could have a material adverse effect on the value of such digital asset investments. The","page_number":73,"box":{"x":70,"y":158,"width":824,"height":11}},{"id":"f32b754f-9c55-4fc1-b53c-fb7c0a9bc3b0","block_type":"box","text":"value of digital assets is subject to a number of factors relating to their fundamental investment characteristics,","page_number":73,"box":{"x":68,"y":173,"width":799,"height":11}},{"id":"becc42a2-df92-4743-a914-7a665ba23e5b","block_type":"box","text":"including the fact that digital assets are bearer instruments and loss, theft, destruction, or compromise of the","page_number":73,"box":{"x":70,"y":188,"width":784,"height":12}},{"id":"73083e34-0948-47cf-ae63-b971e7e47485","block_type":"box","text":"associated private keys could result in permanent loss of the asset, and the capabilities and development of","page_number":73,"box":{"x":69,"y":203,"width":777,"height":12}},{"id":"7a36058b-a1df-4dbd-9ea4-94f9dcd3805d","block_type":"box","text":"blockchain technologies such as the Bitcoin or Ethereum blockchain.","page_number":73,"box":{"x":69,"y":219,"width":488,"height":11}},{"id":"e611d5ad-4d4d-4e22-b633-2addc5178766","block_type":"box","text":"The opaque nature of the digital asset market poses asset verification challenges for market participants,","page_number":73,"box":{"x":101,"y":241,"width":755,"height":11}},{"id":"55e90c38-8aef-423a-9ccf-c25e2f76521c","block_type":"box","text":"regulators and auditors and gives rise to an increased risk of manipulation and fraud, including the potential for Ponzi","page_number":73,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"a72d709b-1627-4323-8889-5e10735d5046","block_type":"box","text":"schemes, bucket shops and pump and dump schemes. Digital assets have in the past been used to facilitate illicit","page_number":73,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"b06fc3fe-8086-416c-9572-ab149ceb6103","block_type":"box","text":"activities. If a digital asset was used to facilitate illicit activities, businesses that facilitate transactions in such digital","page_number":73,"box":{"x":69,"y":286,"width":838,"height":12}},{"id":"02680868-2931-43ac-a01f-505de3f5d1dd","block_type":"box","text":"assets could be at increased risk of potential criminal or civil liability or lawsuits, or of having banking or other","page_number":73,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"c920ecdd-55aa-4a4b-b312-2d06bf056365","block_type":"box","text":"services cut off, and such digital asset could be removed from digital asset platforms. Any of the aforementioned","page_number":73,"box":{"x":69,"y":317,"width":809,"height":11}},{"id":"b0f8a279-7b87-4ffa-a410-493f17083bde","block_type":"box","text":"occurrences could adversely affect the price of the relevant digital asset, the attractiveness of the respective","page_number":73,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"ed434d41-0d59-4b89-9928-03cc03aaca6e","block_type":"box","text":"blockchain network and investments in digital assets.","page_number":73,"box":{"x":69,"y":347,"width":381,"height":11}},{"id":"71d86bac-25d5-40d4-a438-9ae1e40c864b","block_type":"box","text":"If a malicious actor or botnet (a volunteer or hacked collection of computers controlled by networked software","page_number":73,"box":{"x":102,"y":370,"width":780,"height":11}},{"id":"d204ed0a-6dd7-4eea-8673-65e961c1b86b","block_type":"box","text":"coordinating the actions of the computers) obtains control of more than 50% of the processing power dedicated to","page_number":73,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"01a302c6-fbde-4b6d-b2f9-c4650b571eb5","block_type":"box","text":"mining on the Bitcoin network, it may be able to alter the Bitcoin blockchain on which transactions in bitcoin rely by","page_number":73,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"ca93d687-2760-485b-92c7-5c86b4f8cc96","block_type":"box","text":"constructing fraudulent blocks or preventing certain transactions from completing in a timely manner, or at all. The","page_number":73,"box":{"x":69,"y":415,"width":816,"height":11}},{"id":"7849ea07-411b-4944-b290-02ce22beaf4e","block_type":"box","text":"malicious actor or botnet could also control, exclude or modify the ordering of transactions.","page_number":73,"box":{"x":69,"y":430,"width":649,"height":11}},{"id":"92da3b97-9bca-4552-a789-82776ebefaf2","block_type":"box","text":"The Ethereum network is currently vulnerable to several types of attacks, including a:","page_number":73,"box":{"x":101,"y":453,"width":605,"height":11}},{"id":"0fe2ef64-7dc7-4c9d-9e46-207c7a858204","block_type":"box","text":"•","page_number":73,"box":{"x":69,"y":476,"width":6,"height":4}},{"id":"812b9155-c690-4fca-9e4e-8e68bee7c6c6","block_type":"box","text":"“>33% attack” where, if a validator or group of validators were to gain control of more than 33% of the total","page_number":73,"box":{"x":102,"y":473,"width":765,"height":11}},{"id":"33757da2-dbf5-4668-9b58-b018ada2783a","block_type":"box","text":"staked ether on the Ethereum network, a malicious actor could temporarily impede or delay block confirmation or","page_number":73,"box":{"x":102,"y":488,"width":805,"height":11}},{"id":"d7565744-09dc-4849-b2e7-95c580074893","block_type":"box","text":"even cause a temporary fork in the blockchain. This is believed to be temporary, as the Ethereum network’s","page_number":73,"box":{"x":101,"y":503,"width":769,"height":11}},{"id":"490cbfe9-e45c-49c3-817b-3ecf850145ca","block_type":"box","text":"inactivity leak would be expected to eventually penalize the attacker enough for the chain to finalize again (i.e.,","page_number":73,"box":{"x":102,"y":518,"width":786,"height":12}},{"id":"226337be-ea4f-48ff-b000-03541d307f6e","block_type":"box","text":"the honest majority would be expected to reclaim 2/3rd stake as the attacker’s stake is penalized). However, it","page_number":73,"box":{"x":101,"y":534,"width":795,"height":11}},{"id":"588dcd91-626f-49d5-8ba7-7ae2a93038da","block_type":"box","text":"is not believed that with 33% control, a malicious actor could engage in double-spending or fraudulent block","page_number":73,"box":{"x":102,"y":549,"width":767,"height":11}},{"id":"da936292-bf52-4090-8a38-9f50277f5810","block_type":"box","text":"propagation.","page_number":73,"box":{"x":102,"y":564,"width":87,"height":11}},{"id":"2449303b-bba6-4feb-bc10-914b121ea70a","block_type":"box","text":"•","page_number":73,"box":{"x":69,"y":587,"width":6,"height":4}},{"id":"207e099f-03fd-4624-b84f-a5dba7da36b1","block_type":"box","text":"“>50% attack” where, if a validator or group of validators acting in concert were to gain control of more than 50%","page_number":73,"box":{"x":102,"y":584,"width":807,"height":11}},{"id":"142729eb-5cc4-4d3a-9996-8cfe0020107c","block_type":"box","text":"of the total staked ether on the Ethereum network, a malicious actor would be able to gain full control of the","page_number":73,"box":{"x":102,"y":599,"width":771,"height":11}},{"id":"24f71ed9-f90a-49ef-a60b-e34602c07bde","block_type":"box","text":"Ethereum network and the ability to manipulate future transactions on the blockchain, including censoring","page_number":73,"box":{"x":102,"y":614,"width":753,"height":11}},{"id":"9ef4634d-9266-46ab-ba09-4064561b1e67","block_type":"box","text":"transactions, double-spending and fraudulent block propagation, potentially for an extended period or even","page_number":73,"box":{"x":101,"y":629,"width":759,"height":11}},{"id":"6a9130d7-6fcf-4a1f-abfc-964d0ebf97df","block_type":"box","text":"permanently. In theory, the minority non-attackers might reach social consensus to reject blocks proposed by the","page_number":73,"box":{"x":102,"y":645,"width":804,"height":11}},{"id":"e812b2cd-e49f-4ba6-8ba2-0761ac84563e","block_type":"box","text":"malicious majority attacker, reducing the attacker’s ability to engage in malicious activity, but there can be no","page_number":73,"box":{"x":102,"y":660,"width":778,"height":11}},{"id":"8e56e014-a761-4581-a033-6998faca549b","block_type":"box","text":"assurance this would happen or that non-attackers would be able to coordinate effectively.","page_number":73,"box":{"x":102,"y":675,"width":643,"height":11}},{"id":"bc5bbafa-7b72-4842-948e-caed0e31061c","block_type":"box","text":"•","page_number":73,"box":{"x":69,"y":698,"width":6,"height":4}},{"id":"cf219515-9592-4d06-a99b-5f5dd5ccaacb","block_type":"box","text":"“>66% attack” where, if a validator or group of validators acting in concert were to gain control of more than 66%","page_number":73,"box":{"x":102,"y":695,"width":807,"height":11}},{"id":"a9c43cc3-790e-44ce-8365-23e505f4876e","block_type":"box","text":"of the total staked ether on the Ethereum network, a malicious actor could permanently and irreversibly","page_number":73,"box":{"x":102,"y":710,"width":737,"height":11}},{"id":"32f82f46-ab58-42e4-887c-36e3cec1ad1b","block_type":"box","text":"manipulate the blockchain, including censorship, double-spending and fraudulent block propagation. The attacker","page_number":73,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"8476fd56-43c6-4b93-a44d-171b41d58d31","block_type":"box","text":"could finalize their preferred chain without any consideration for the votes of other stakers and could also revert","page_number":73,"box":{"x":101,"y":740,"width":799,"height":11}},{"id":"ab909f77-da64-4832-9c55-6bd130447a84","block_type":"box","text":"finalized blocks.","page_number":73,"box":{"x":101,"y":755,"width":113,"height":9}},{"id":"9be61deb-4fbf-4656-a997-508b1355146d","block_type":"box","text":"The largest bitcoin and ether wallets are believed to hold, in aggregate, a significant percentage of the bitcoins","page_number":73,"box":{"x":101,"y":778,"width":790,"height":11}},{"id":"64f3127b-f3cd-4a6c-8288-e2f32384c20c","block_type":"box","text":"and ether in circulation. Moreover, it is possible that other persons or entities control multiple wallets that collectively","page_number":73,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"2512607b-4442-4b8e-8fc1-3b3aa54833c0","block_type":"box","text":"hold a significant number of bitcoins or ether, even if they individually only hold a small amount, and it is possible","page_number":73,"box":{"x":69,"y":808,"width":809,"height":11}},{"id":"3b3916e0-990a-433d-8131-f28ec7af0e4b","block_type":"box","text":"that some of these wallets are controlled by the same person or entity. As a result of this concentration of ownership,","page_number":73,"box":{"x":68,"y":823,"width":840,"height":11}},{"id":"bab8c64d-4359-4a04-a0f7-3ec3ffe3571f","block_type":"box","text":"large sales or distributions by such holders could have an adverse effect on the market price of bitcoin or ether.","page_number":73,"box":{"x":70,"y":838,"width":796,"height":12}},{"id":"ba8e3b6c-c847-4dea-944d-fb407d8a9a1f","block_type":"box","text":"Risks Related to Digital Assets as a Means of Payment.","page_number":73,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"98c2adfa-581c-452d-99d4-6920e0b9e74d","block_type":"box","text":"Digital assets such as bitcoin and ether have only","page_number":73,"box":{"x":506,"y":861,"width":354,"height":11}},{"id":"f5f317d4-5cfa-4b84-b150-d3e1532809e4","block_type":"box","text":"recently become selectively accepted as a means of payment by retail and commercial outlets, and use of bitcoins or","page_number":73,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"0f84a8a2-b158-45b3-8c1b-1f703eb58109","block_type":"box","text":"ether by consumers to pay such retail and commercial outlets remains limited. Banks and other established financial","page_number":73,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"f80fe408-a7ca-4916-b02c-81a7f101ef2c","block_type":"box","text":"institutions may refuse to process funds for bitcoin or ether transactions; process wire transfers to or from digital","page_number":73,"box":{"x":70,"y":906,"width":807,"height":12}},{"id":"1479f2b7-7c13-48e8-8f41-0620d2b9bad9","block_type":"box","text":"II-26","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2ae3f666-1f73-4cd2-8d12-ced5acc9b298","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"30dccdee-88c1-464c-9869-56179ff371a3","block_type":"box","text":"asset platforms, bitcoin- or ether-related companies or service providers; or maintain accounts for persons or entities","page_number":74,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"361949f0-ea17-4591-a2cb-44634f34a78d","block_type":"box","text":"transacting in bitcoin or ether. As a result, the prices of bitcoin or ether may be influenced to a significant extent by","page_number":74,"box":{"x":68,"y":60,"width":822,"height":11}},{"id":"21c641ae-2fb2-43d4-b5b0-f223f791cae2","block_type":"box","text":"speculators, and thus contributing to price volatility that makes retailers less likely to accept such digital assets as a","page_number":74,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"2a52ec63-75f0-4c5a-9eb0-6c70d8fb897e","block_type":"box","text":"form of payment in the future.","page_number":74,"box":{"x":68,"y":90,"width":213,"height":11}},{"id":"697691e0-c5c1-4e24-814f-3a430ab3f20e","block_type":"box","text":"In addition, as the speed of digital asset transactions and the number of transactions that can be processed","page_number":74,"box":{"x":102,"y":113,"width":775,"height":11}},{"id":"83b29a41-04bf-4b40-a7e7-ca6acb7d36b1","block_type":"box","text":"lags behind growth in the use of digital asset networks, average fees and settlement times may increase","page_number":74,"box":{"x":70,"y":128,"width":747,"height":11}},{"id":"90a69ced-5c67-4435-ae57-21411d4ed506","block_type":"box","text":"considerably. For example, the Bitcoin network and Ethereum network have been, at times, at capacity, which has led","page_number":74,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"951f9a6f-6c87-463e-9e2c-77c5463fb65a","block_type":"box","text":"to increased transaction fees. Increased fees and decreased settlement speeds could preclude certain uses for","page_number":74,"box":{"x":68,"y":158,"width":802,"height":11}},{"id":"d828c9e2-26be-4227-b382-d9882683f88e","block_type":"box","text":"bitcoin or ether (e.g., micropayments), and could reduce demand for, and the price of, bitcoin or ether. Bitcoin or","page_number":74,"box":{"x":69,"y":173,"width":801,"height":11}},{"id":"ad3c1021-d926-44e7-afd5-665afd8d3fb1","block_type":"box","text":"Ethereum transactions are typically not reversible without the consent and active participation of the recipient of the","page_number":74,"box":{"x":70,"y":188,"width":827,"height":11}},{"id":"1bf574a6-09d4-4074-ba3b-8ad15a5efa53","block_type":"box","text":"transaction. Once a transaction has been verified and recorded in a block that is added to the Bitcoin or Ethereum","page_number":74,"box":{"x":68,"y":203,"width":815,"height":9}},{"id":"57ddcb56-5607-483c-8f65-d70c10acfa4b","block_type":"box","text":"blockchain, an incorrect transfer or theft of bitcoin generally will not be reversible and a holder of bitcoin or ether,","page_number":74,"box":{"x":69,"y":218,"width":806,"height":12}},{"id":"d52188bd-bbd8-4724-9967-2a6ad2a1cf63","block_type":"box","text":"such as an ETP (as defined below), may not be capable of seeking compensation for any such transfer or theft.","page_number":74,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"4501af7a-0dd0-49e0-b830-3332d38478d1","block_type":"box","text":"Risks Related to the Digital Asset Markets.","page_number":74,"box":{"x":102,"y":257,"width":305,"height":11}},{"id":"5a6566e9-39e3-4488-8fbd-8fdc3af4d410","block_type":"box","text":"Bitcoin and ether were among the first cryptographic digital assets to","page_number":74,"box":{"x":415,"y":256,"width":491,"height":12}},{"id":"269cad03-55e6-4402-b71b-8fce3e140bc6","block_type":"box","text":"gain global adoption and critical mass. In general, digital asset networks, including the Bitcoin network, the Ethereum","page_number":74,"box":{"x":68,"y":272,"width":837,"height":11}},{"id":"10a8e950-664a-439e-95d7-66c72ced8645","block_type":"box","text":"network and other cryptographic and algorithmic protocols governing the issuance of digital assets represent a new","page_number":74,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"e0407e7b-151f-41e2-87d6-a70fa76ea86e","block_type":"box","text":"and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate. In addition, many","page_number":74,"box":{"x":69,"y":302,"width":799,"height":11}},{"id":"330367ae-7213-41e6-9c7b-00be21ee705b","block_type":"box","text":"consortiums and financial institutions are also researching and investing resources into private or permissioned","page_number":74,"box":{"x":69,"y":317,"width":799,"height":11}},{"id":"d4c7148a-c719-4415-af08-d9a37a35e7ef","block_type":"box","text":"smart contract platforms rather than open platforms like the Bitcoin network or the Ethereum network. Competition","page_number":74,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"90077f8b-5565-44a7-8c13-3867cf13a5aa","block_type":"box","text":"from the emergence or growth of alternative digital assets and smart contracts platforms, such as Solana,","page_number":74,"box":{"x":68,"y":347,"width":761,"height":11}},{"id":"ee311f02-805d-4664-a935-6e57c101626d","block_type":"box","text":"Avalanche, Polkadot, or Cardano, could have a negative impact on the demand for, and price of, bitcoin or ether and","page_number":74,"box":{"x":68,"y":362,"width":827,"height":11}},{"id":"bfd36485-d308-46df-b694-a3fa9c31250d","block_type":"box","text":"thereby adversely affect the value of the bitcoin- or ether-related investments.","page_number":74,"box":{"x":68,"y":377,"width":553,"height":11}},{"id":"0b094bcd-5429-4a38-9034-7ab2d84393cb","block_type":"box","text":"In the past, bugs, defects and flaws in the source code for digital assets have been exposed and exploited,","page_number":74,"box":{"x":102,"y":400,"width":765,"height":11}},{"id":"78721884-7e59-46fa-9a9f-bdd08e27f515","block_type":"box","text":"including flaws that disabled some functionality for users, exposed users’ personal information and/or resulted in the","page_number":74,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"b9a4e650-a948-4e68-8c23-aa6a61d13fc3","block_type":"box","text":"theft of users’ digital assets. The cryptography underlying digital asset networks or digital assets could prove to be","page_number":74,"box":{"x":68,"y":430,"width":819,"height":11}},{"id":"e70ec693-19fa-4624-be4c-b593057b6df8","block_type":"box","text":"flawed or ineffective, or developments in mathematics and/or technology, including advances in digital computing,","page_number":74,"box":{"x":68,"y":445,"width":814,"height":12}},{"id":"aad41f35-2060-4904-9b5a-d4220e09a63d","block_type":"box","text":"algebraic geometry and, in particular, quantum computing, could result in such cryptography becoming ineffective. In","page_number":74,"box":{"x":69,"y":460,"width":832,"height":12}},{"id":"235d2f8d-8754-4f03-88a0-c71e891d1fa4","block_type":"box","text":"any of these circumstances, a malicious actor may be able to compromise the security of digital asset networks or","page_number":74,"box":{"x":69,"y":475,"width":818,"height":12}},{"id":"b0257ff8-033f-447f-9dfd-ba520ab711f4","block_type":"box","text":"take a holder’s digital assets.","page_number":74,"box":{"x":68,"y":491,"width":212,"height":11}},{"id":"740765a7-2174-48ee-a947-335b6568842d","block_type":"box","text":"Quantum computing technology is an emerging phenomenon which, because it is still developing, makes it","page_number":74,"box":{"x":102,"y":513,"width":760,"height":12}},{"id":"3da10cc4-e851-4307-b368-dff5fff9fde0","block_type":"box","text":"difficult to predict its ultimate effect on the future value of bitcoin, ether and other digital assets. 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A sufficiently advanced quantum computer could potentially derive private keys from public keys that have","page_number":74,"box":{"x":69,"y":672,"width":819,"height":11}},{"id":"7f1b4d5d-c5cc-45f4-ae63-31b572c15cdb","block_type":"box","text":"been revealed on-chain or exposed during the process of initiating, broadcasting or confirming transactions. The","page_number":74,"box":{"x":69,"y":687,"width":797,"height":11}},{"id":"c76e2cae-7899-48cf-960a-1dcf9d740869","block_type":"box","text":"extent of this risk may depend on, among other things, address or account types, whether addresses or accounts are","page_number":74,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"aa78fd70-3c7b-4772-995d-8c458105d2f3","block_type":"box","text":"reused, whether public keys have been exposed, the timing and manner of transfers, and the wallet-generation, key","page_number":74,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"216416b2-285f-488a-8ef6-45343844f314","block_type":"box","text":"management and transaction-signing practices of the applicable cryptocurrency custodian(s) and other service","page_number":74,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"e6a7b514-a202-4b51-8d7d-4e83d4e3902d","block_type":"box","text":"providers. If quantum computing is able to advance in this manner, the cryptography underlying a cryptocurrency","page_number":74,"box":{"x":70,"y":748,"width":799,"height":11}},{"id":"0f660ea5-2c87-4f47-b8ba-26870cc3ac2d","block_type":"box","text":"network could become ineffective, which could compromise the security of that network, including, in the case of a","page_number":74,"box":{"x":69,"y":763,"width":817,"height":11}},{"id":"a1f9a6ba-9dbe-49be-a27c-151212aefc8d","block_type":"box","text":"network such as Ethereum, its consensus mechanism, or allow a malicious actor to compromise wallets holding","page_number":74,"box":{"x":69,"y":778,"width":800,"height":11}},{"id":"356eb416-eb2d-4100-acd7-d517d57385fb","block_type":"box","text":"cryptocurrencies, resulting in losses to the owners of such wallets.","page_number":74,"box":{"x":69,"y":793,"width":477,"height":11}},{"id":"56fdc8bc-eaf1-4b18-a939-e2c7c96fe5b7","block_type":"box","text":"While various actors in the digital asset communities are taking steps to enable the use of post-quantum or","page_number":74,"box":{"x":101,"y":816,"width":769,"height":11}},{"id":"9767600a-ebcb-484e-83e1-d162f4de8b55","block_type":"box","text":"quantum-resistant cryptographic algorithms, there is no guarantee that new post-quantum or quantum-resistant","page_number":74,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"62b4b860-a171-45da-8cf1-54e379698924","block_type":"box","text":"architectures will be built and appropriate transitions will be implemented across the relevant networks (including, in","page_number":74,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"9df13d9e-0c37-4c97-9814-535e1b10bc35","block_type":"box","text":"the case of Ethereum, its multiple layers) at scale in a timely manner, or that any such transition would occur without","page_number":74,"box":{"x":68,"y":861,"width":835,"height":11}},{"id":"3e0dfd53-b0eb-49bd-a54d-65b69a02ea73","block_type":"box","text":"bugs, security vulnerabilities, increased transaction costs, reduced network functionality or other disruption. Any such","page_number":74,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"66ac0d29-47a6-4b87-8b1e-b240a446e85f","block_type":"box","text":"changes could require the achievement of broad consensus within the relevant network community and a fork (or","page_number":74,"box":{"x":69,"y":891,"width":805,"height":12}},{"id":"f81488f6-2046-45ee-b172-749fc627bb8a","block_type":"box","text":"II-27","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2bd80a31-eb56-4f41-8f1b-4dd44ece6664","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec39efeb-a490-4cdf-ac6f-c4d450425869","block_type":"box","text":"multiple forks), and there can be no assurance that such consensus would be achieved or the changes implemented","page_number":75,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"e00aa158-2b16-40d0-a962-7a69b308f6a1","block_type":"box","text":"successfully or without comprising the security of a cryptocurrency network.","page_number":75,"box":{"x":69,"y":60,"width":537,"height":11}},{"id":"24a625c6-dc02-4502-81ab-475d94a1cb41","block_type":"box","text":"In addition, because a significant amount of bitcoin and ether is held in addresses or accounts whose public","page_number":75,"box":{"x":102,"y":82,"width":773,"height":12}},{"id":"67e71084-7dad-4a4b-a059-c5a1f94aa7e9","block_type":"box","text":"keys have already been exposed, a sufficiently advanced quantum computer could be used to misappropriate those","page_number":75,"box":{"x":69,"y":98,"width":825,"height":11}},{"id":"89097dde-26e9-4405-a5a0-67118648832c","block_type":"box","text":"assets undermining confidence in the affected network and depressing the price of the underlying cryptocurrency,","page_number":75,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"7091a8ae-6dd0-4af1-aed5-fd568b139c96","block_type":"box","text":"which would adversely affect the value of cryptocurrency holdings. Moreover, normal operations and functionality of","page_number":75,"box":{"x":68,"y":128,"width":823,"height":11}},{"id":"c19c1c10-6bbb-493a-a69e-15555c8f1ad4","block_type":"box","text":"digital asset networks may be negatively affected such that it is no longer attractive to users, miners, validators or","page_number":75,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"7e0c45ec-3cbf-419a-94c5-098d17ccd749","block_type":"box","text":"other stakeholders, thereby dampening demand for such digital assets. Even if a cryptocurrency other than bitcoin or","page_number":75,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"344b769f-083d-4db7-b075-39d286366766","block_type":"box","text":"ether were affected by similar circumstances, any reduction in confidence in the source code or cryptography","page_number":75,"box":{"x":69,"y":173,"width":778,"height":11}},{"id":"7ce2bcf7-4664-4d6f-af94-cadbf9d24e93","block_type":"box","text":"underlying digital assets generally could negatively affect demand for cryptocurrencies and therefore adversely affect","page_number":75,"box":{"x":69,"y":188,"width":834,"height":12}},{"id":"78dc980f-004f-44e1-afc9-c419686d8689","block_type":"box","text":"the value of cryptocurrency holdings.","page_number":75,"box":{"x":68,"y":203,"width":261,"height":12}},{"id":"afd89f49-a3e9-4af4-9d7b-2c0bb4aba13d","block_type":"box","text":"Digital Asset ETPs.","page_number":75,"box":{"x":102,"y":226,"width":132,"height":11}},{"id":"0d6f5c19-b0ae-4f0e-b258-9078bafe501f","block_type":"box","text":"The Fund may acquire shares in exchange-traded products (“ETPs”) that seek to reflect","page_number":75,"box":{"x":240,"y":226,"width":621,"height":11}},{"id":"553dc375-4ff3-449b-b38b-b71b2e2de931","block_type":"box","text":"generally the performance of the price of bitcoin or ether by directly holding bitcoin (“Bitcoin ETPs”) or ether (“Ether","page_number":75,"box":{"x":68,"y":241,"width":822,"height":11}},{"id":"fade3aa7-1329-44ec-ad89-44f1b3f1f905","block_type":"box","text":"ETPs”), including shares of a Bitcoin ETP or Ether ETP sponsored by an affiliate of BlackRock. The Fund will only","page_number":75,"box":{"x":70,"y":256,"width":796,"height":12}},{"id":"18c0d549-773a-4c03-a733-9f48f89738d8","block_type":"box","text":"invest in Bitcoin ETPs or Ether ETPs that are listed and traded on national securities exchanges. A Bitcoin ETP or an","page_number":75,"box":{"x":70,"y":272,"width":822,"height":11}},{"id":"0b23dcc8-9e7d-4b12-a9b7-f50dbdad9d42","block_type":"box","text":"Ether ETP is not an investment company registered under the Investment Company Act of 1940, as amended, and","page_number":75,"box":{"x":70,"y":286,"width":813,"height":12}},{"id":"9bbd727b-4f06-47c5-b1d2-f3f2a2b312b8","block_type":"box","text":"therefore does not have the same investor protections as a registered investment company.","page_number":75,"box":{"x":68,"y":302,"width":656,"height":11}},{"id":"25178b4a-07d1-4fba-9a70-264ad0e02fb4","block_type":"box","text":"Futures on Digital Assets.","page_number":75,"box":{"x":102,"y":325,"width":182,"height":11}},{"id":"87b7b457-ac58-4d9d-82a8-317913fd13ec","block_type":"box","text":"The Fund may invest in futures on Bitcoin and futures on Ethereum. See","page_number":75,"box":{"x":290,"y":324,"width":514,"height":11}},{"id":"9a14d293-ce37-4ba0-989b-cef4df50b351","block_type":"box","text":"“Derivatives—General,” “Derivatives—Regulation of Derivatives” and “Derivatives—Risk Factors in Derivatives”","page_number":75,"box":{"x":70,"y":339,"width":792,"height":12}},{"id":"3399360e-516b-4162-9631-e65b18691f0a","block_type":"box","text":"below.","page_number":75,"box":{"x":69,"y":355,"width":43,"height":9}},{"id":"72c316d5-6912-463e-b7e1-a00a6b39de35","block_type":"box","text":"Distressed Securities.","page_number":75,"box":{"x":102,"y":377,"width":159,"height":9}},{"id":"4f198b87-cf93-463f-bdc7-4fd870358f52","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":75,"box":{"x":267,"y":377,"width":633,"height":12}},{"id":"1fa50cf7-6491-4e10-b618-d85712f3f5e7","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":75,"box":{"x":69,"y":392,"width":834,"height":12}},{"id":"50b49f33-e43f-45c6-8803-ddc8bfbdc865","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":75,"box":{"x":70,"y":407,"width":827,"height":12}},{"id":"c3560e41-15f8-4971-a827-afa9bccd63ba","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":75,"box":{"x":69,"y":423,"width":835,"height":11}},{"id":"2154769e-8f55-4be4-ab48-d922f472cedd","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":75,"box":{"x":69,"y":438,"width":784,"height":11}},{"id":"e5e8f1b4-3182-4dab-9904-abe99fe2dc78","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":75,"box":{"x":70,"y":453,"width":569,"height":11}},{"id":"a34275bc-8205-4a3f-970e-75247c46cc64","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":75,"box":{"x":101,"y":476,"width":766,"height":11}},{"id":"e47fb72b-8096-4ae5-83bb-301937ab87f1","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":75,"box":{"x":70,"y":491,"width":795,"height":11}},{"id":"cdeb5756-f492-4477-8d3e-b265572d038c","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":75,"box":{"x":70,"y":506,"width":826,"height":11}},{"id":"76bf3c1c-c49a-4958-876a-a50aadf8641d","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":75,"box":{"x":69,"y":521,"width":794,"height":11}},{"id":"e80f3f09-a77e-4140-b2be-313aaae8915a","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":75,"box":{"x":69,"y":536,"width":832,"height":11}},{"id":"b7b0a9c0-150f-467c-8d48-fbfca21adf5a","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":75,"box":{"x":69,"y":551,"width":824,"height":11}},{"id":"9ecc2167-fbf3-419c-8d50-70dfa759cfa9","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":75,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"a83dd599-cef2-4308-a3f7-bc064bfe840f","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":75,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"544e2923-13ab-4960-84f3-c0a337b102c6","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":75,"box":{"x":70,"y":596,"width":831,"height":12}},{"id":"5a8d9082-8488-46da-a259-4cd1f7afa515","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":75,"box":{"x":69,"y":612,"width":826,"height":11}},{"id":"c60f5010-a876-4ba7-8390-24883e483b2f","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":75,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"69f53676-36ff-4ab2-aed6-f03a472b08fc","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":75,"box":{"x":68,"y":642,"width":834,"height":11}},{"id":"f2ad37fb-f4ec-49f7-aa7d-045bc452ac18","block_type":"box","text":"satisfied (e.g., through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":75,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"050bccfc-4241-46e2-8383-2bee5b59873b","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). 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Although a Fund does not seek to implement a","page_number":75,"box":{"x":531,"y":846,"width":341,"height":11}},{"id":"50106eab-327f-4a17-b5fe-e18e13d1e7f4","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":75,"box":{"x":69,"y":861,"width":785,"height":11}},{"id":"04ff3d33-0c1d-454b-b471-d9f06f10db97","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":75,"box":{"x":69,"y":876,"width":838,"height":11}},{"id":"148cd0ea-b661-4785-b591-40eb79bce167","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":75,"box":{"x":70,"y":891,"width":827,"height":12}},{"id":"8119ccea-757f-46f6-85ca-84b005ef25e1","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":75,"box":{"x":69,"y":906,"width":806,"height":12}},{"id":"c612d222-b312-4515-8df9-47b7868bdcba","block_type":"box","text":"II-28","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e4c3b829-1391-4421-a938-16e73cb91f4a","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a10b15fa-77cb-48e4-a450-97b57bbe9dbd","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":76,"box":{"x":69,"y":45,"width":812,"height":11}},{"id":"c7d63e5f-2980-40ff-a669-de54e80d73bf","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer.","page_number":76,"box":{"x":69,"y":60,"width":492,"height":11}},{"id":"ac66e6bb-632b-4aab-97d2-192b8863e6bb","block_type":"box","text":"The ESG characteristics utilized in a Fund’s investment process are anticipated to evolve over time and one or","page_number":76,"box":{"x":101,"y":83,"width":787,"height":10}},{"id":"16f643ee-6e33-43f4-a357-57afda9be5e4","block_type":"box","text":"more characteristics may not be relevant with respect to all issuers that are eligible for investment. Certain of these","page_number":76,"box":{"x":69,"y":98,"width":828,"height":11}},{"id":"dcf03b42-15ce-4b84-a7f5-fcd24135e760","block_type":"box","text":"considerations may affect a Fund’s exposure to certain companies or industries.","page_number":76,"box":{"x":69,"y":113,"width":575,"height":11}},{"id":"0fd2ec8d-441f-429d-a4ce-5ea593312bed","block_type":"box","text":"While Fund management views ESG considerations as having the potential to contribute to a Fund’s long-term","page_number":76,"box":{"x":101,"y":135,"width":782,"height":12}},{"id":"bb4e4eda-b169-483a-a080-1276a9f3df5f","block_type":"box","text":"performance, there is no guarantee that such results will be achieved.","page_number":76,"box":{"x":70,"y":150,"width":500,"height":12}},{"id":"8c30b8fa-4cd5-450d-96aa-7379c59ab907","block_type":"box","text":"Equity Securities.","page_number":76,"box":{"x":102,"y":173,"width":127,"height":11}},{"id":"697f4d99-c83b-4a88-985a-b7e131477948","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":76,"box":{"x":235,"y":173,"width":648,"height":11}},{"id":"38e1d9bd-7786-4c59-a4e7-93b53210784d","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":76,"box":{"x":70,"y":188,"width":802,"height":12}},{"id":"8400e34c-647d-4344-9caa-b5824c546849","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":76,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"bb66b201-6b9e-48ee-b984-accd1b5ed0af","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":76,"box":{"x":69,"y":218,"width":819,"height":12}},{"id":"bf21c590-ffc2-4be0-be15-f1a7319fa298","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":76,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"e4086e82-1f2e-49f8-8dcd-913a6dfc07cf","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":76,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"406344dc-8f0f-4b46-bb56-8d37d6307777","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":76,"box":{"x":68,"y":264,"width":775,"height":11}},{"id":"d6a474b2-e3b2-4b1e-8ccb-3611b6e1a4cb","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":76,"box":{"x":69,"y":279,"width":777,"height":11}},{"id":"ad9ebe53-5cee-4aa9-a32f-a44e93f19701","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":76,"box":{"x":69,"y":294,"width":837,"height":11}},{"id":"9e9486ef-81e9-4745-8408-928bdac6cfce","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":76,"box":{"x":69,"y":309,"width":831,"height":11}},{"id":"8f6b3866-61d0-46ab-9c4c-6b6ae425b027","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":76,"box":{"x":69,"y":324,"width":829,"height":12}},{"id":"4be5f669-9a6c-47b6-9321-d7ac9cecba07","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":76,"box":{"x":69,"y":340,"width":325,"height":11}},{"id":"1c1096ba-1302-493b-9e55-aae4ce1e5b04","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":76,"box":{"x":102,"y":362,"width":745,"height":11}},{"id":"c74c78be-2f09-40b4-8963-fbbd2dddec4c","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":76,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"71d499a3-8516-4141-910f-87377c3a02ec","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":76,"box":{"x":69,"y":392,"width":824,"height":12}},{"id":"61f54daf-67aa-4ecb-bfe0-f7c314f9d8ae","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":76,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"38015570-d31f-4b3a-9ced-71d3a8dae75f","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":76,"box":{"x":70,"y":423,"width":782,"height":11}},{"id":"6b989607-499f-4dfa-a700-25441fe2532f","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":76,"box":{"x":69,"y":438,"width":790,"height":11}},{"id":"b2a2671e-6829-4ee8-bbc4-62867a76edad","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":76,"box":{"x":70,"y":453,"width":823,"height":11}},{"id":"f01af1e7-13a7-4791-8908-f0c3cfedd531","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":76,"box":{"x":69,"y":468,"width":805,"height":11}},{"id":"ce8531bd-62a2-4e47-9788-331b28607d3d","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":76,"box":{"x":70,"y":483,"width":836,"height":11}},{"id":"8d287180-6bcb-4bc1-8eab-00cb0684a54b","block_type":"box","text":"initial public offering.","page_number":76,"box":{"x":70,"y":498,"width":147,"height":11}},{"id":"6693fe92-79bf-4a4b-b78e-72e6d6489c55","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":76,"box":{"x":101,"y":521,"width":777,"height":11}},{"id":"66076fc8-4cac-4a91-8331-6b59e886cb52","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":76,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"ec13a775-fad2-48be-ab8d-922d8f393f77","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":76,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"2f2e847e-15f6-44e9-b863-fa631568c806","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":76,"box":{"x":69,"y":566,"width":829,"height":11}},{"id":"2c7da838-e64f-4614-836f-e4682917f16b","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":76,"box":{"x":70,"y":581,"width":831,"height":12}},{"id":"12ffa889-9b84-4d33-869e-54cba57f9419","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":76,"box":{"x":69,"y":596,"width":826,"height":12}},{"id":"c1aad13e-5ef7-4084-a62b-319cc661e87c","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":76,"box":{"x":68,"y":612,"width":810,"height":11}},{"id":"91bc2904-dbbf-479a-9048-83dfea57b781","block_type":"box","text":"more established companies.","page_number":76,"box":{"x":69,"y":627,"width":209,"height":11}},{"id":"b510f425-7059-4a7d-b57d-4df0182fe5cc","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":76,"box":{"x":102,"y":649,"width":776,"height":12}},{"id":"dd6c8f95-4c5d-4160-b820-316de0853e09","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":76,"box":{"x":70,"y":664,"width":810,"height":12}},{"id":"e6c94325-684f-41ac-a368-d931547ce253","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":76,"box":{"x":70,"y":680,"width":799,"height":11}},{"id":"9824f078-b706-409f-96ec-5e5428fd4814","block_type":"box","text":"below.","page_number":76,"box":{"x":69,"y":695,"width":43,"height":9}},{"id":"48ed3df0-6b12-4edf-a8b2-3461df3e7e53","block_type":"box","text":"Real Estate-Related Securities.","page_number":76,"box":{"x":102,"y":718,"width":219,"height":8}},{"id":"e9ac26e4-15e9-4406-9fa9-d192274192df","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":76,"box":{"x":327,"y":718,"width":565,"height":11}},{"id":"f6332a6a-f430-49fa-bc29-cea725274f9f","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":76,"box":{"x":69,"y":732,"width":822,"height":12}},{"id":"fce0c503-b369-4973-a7d7-ca8d969d3e76","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":76,"box":{"x":69,"y":748,"width":814,"height":11}},{"id":"41751a65-9989-4b80-9b91-001a535b0e1e","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":76,"box":{"x":70,"y":763,"width":796,"height":11}},{"id":"67fd74f2-1f7f-4bd4-9a16-4c0731bad035","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":76,"box":{"x":69,"y":778,"width":836,"height":11}},{"id":"89c43aa3-42b0-41cd-9222-614dde3363a2","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":76,"box":{"x":69,"y":793,"width":795,"height":11}},{"id":"083d413e-2ba3-491f-bc6e-dffebd4515df","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":76,"box":{"x":68,"y":808,"width":828,"height":11}},{"id":"630e7c57-ac25-4226-82b2-450cf9ab7c31","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":76,"box":{"x":69,"y":823,"width":794,"height":12}},{"id":"befc5a05-6dbc-4793-845e-49837ff4e159","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":76,"box":{"x":68,"y":838,"width":805,"height":12}},{"id":"7109e3da-1161-469a-8983-0ffdf0639b90","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":76,"box":{"x":69,"y":853,"width":836,"height":12}},{"id":"89215ff1-fbb6-40a9-9cb9-808e68d6af9e","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":76,"box":{"x":69,"y":869,"width":838,"height":11}},{"id":"bbb4aba8-7818-4d1a-b406-b9f5a0ef6ce9","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":76,"box":{"x":70,"y":884,"width":838,"height":11}},{"id":"82477a56-cfc4-41d6-b8b9-25b808c24263","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":76,"box":{"x":68,"y":899,"width":785,"height":11}},{"id":"5c44cbd2-016b-4d61-a8dc-d82358ae737d","block_type":"box","text":"II-29","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b9dd1a31-ec30-420b-b19c-cd6b809b9da2","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c13eb318-fd3f-4f4e-b71f-e9251c7304cd","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":77,"box":{"x":70,"y":45,"width":836,"height":11}},{"id":"92fa053e-7ec2-42d1-809c-05698bf2dd60","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":77,"box":{"x":68,"y":60,"width":381,"height":11}},{"id":"6ead614d-11c5-4237-bb11-6f9257e01a92","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":77,"box":{"x":102,"y":82,"width":797,"height":12}},{"id":"6d62df0d-c33b-4855-b46f-eece6d7a5567","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":77,"box":{"x":69,"y":98,"width":829,"height":11}},{"id":"866d25c0-4906-4eb2-8f96-4a113c41c44f","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":77,"box":{"x":70,"y":113,"width":794,"height":11}},{"id":"4d2d15cc-bb3d-49f9-851d-e8bee25917aa","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":77,"box":{"x":69,"y":128,"width":730,"height":11}},{"id":"870e32fe-eac4-4faf-b932-60cba26772d0","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":77,"box":{"x":102,"y":150,"width":381,"height":12}},{"id":"a0f62263-b3e7-4b24-a09e-e57000409a8e","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":77,"box":{"x":490,"y":151,"width":376,"height":11}},{"id":"f181e993-d3f8-4a93-80aa-b0e2a11a27f6","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":77,"box":{"x":70,"y":166,"width":828,"height":11}},{"id":"59024339-2d17-463e-a1f2-5a249d51a292","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":77,"box":{"x":69,"y":181,"width":815,"height":11}},{"id":"a96f55f2-83d3-4794-9730-983c7300af4f","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":77,"box":{"x":69,"y":196,"width":804,"height":11}},{"id":"2b7e057d-dd36-45a3-979e-3bac7b1f3781","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":77,"box":{"x":69,"y":211,"width":647,"height":11}},{"id":"2349c4fe-33a5-4dc9-b2af-2a416941d182","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":77,"box":{"x":102,"y":234,"width":773,"height":11}},{"id":"366ddfe3-cf3d-41ad-8fcf-b48e6caf3a03","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":77,"box":{"x":69,"y":249,"width":597,"height":11}},{"id":"7dab0b66-be08-420f-b3e6-eb0cbe975762","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":77,"box":{"x":102,"y":271,"width":797,"height":12}},{"id":"9989f5f4-bebd-4662-9d0a-5fc80d54b0bb","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":77,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"b9b28575-f476-4b18-8a7f-832e5bcc0dc5","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":77,"box":{"x":69,"y":302,"width":808,"height":11}},{"id":"6eda1f4c-07d9-477b-a3eb-f6413179e98f","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":77,"box":{"x":69,"y":317,"width":825,"height":11}},{"id":"6526ab6a-6403-43bc-aa23-af3eb323937a","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":77,"box":{"x":69,"y":332,"width":631,"height":11}},{"id":"76b444b9-c386-4a30-b71f-f95aaad20de1","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":77,"box":{"x":101,"y":355,"width":758,"height":11}},{"id":"41f34a87-766f-4fd5-8e5d-d9cdcdad8f03","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":77,"box":{"x":70,"y":370,"width":787,"height":11}},{"id":"79419ec0-b20c-461b-98b0-320697391dd0","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":77,"box":{"x":70,"y":385,"width":789,"height":11}},{"id":"90d29a13-a17e-4496-92a6-9290a3db2982","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":77,"box":{"x":68,"y":400,"width":442,"height":11}},{"id":"76a5ccc2-9d9f-4959-a6fb-04b726ab8d76","block_type":"box","text":"Fund management believes that relatively small companies may to have the opportunity to develop into","page_number":77,"box":{"x":102,"y":423,"width":735,"height":11}},{"id":"ee0327aa-8f05-4c58-a93f-f5fed1d86232","block_type":"box","text":"significant business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of","page_number":77,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"2f6f633e-1bdc-468f-bada-130e079facb3","block_type":"box","text":"business development that have a new technology, a unique or proprietary product or service, or a favorable market","page_number":77,"box":{"x":69,"y":453,"width":827,"height":11}},{"id":"46d2beab-93a2-4799-87b0-b7d478e8ff96","block_type":"box","text":"position.","page_number":77,"box":{"x":70,"y":468,"width":58,"height":11}},{"id":"474279e8-c91d-4686-83a7-8a597c964b64","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":77,"box":{"x":102,"y":491,"width":729,"height":11}},{"id":"90948050-df50-4f48-a991-f6c0eed289c3","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":77,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"8c63aa90-9ab0-4c13-b438-1019452f683a","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":77,"box":{"x":69,"y":521,"width":794,"height":11}},{"id":"594d3400-1a67-4143-9e74-83e44e7bd2bd","block_type":"box","text":"cycles.","page_number":77,"box":{"x":69,"y":536,"width":46,"height":11}},{"id":"d76285de-4b20-4635-bc3d-e62d580b415e","block_type":"box","text":"Tracking Stocks","page_number":77,"box":{"x":103,"y":559,"width":110,"height":11}},{"id":"64a36f81-7bfb-4cad-becd-16eaacc83c4b","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":77,"box":{"x":214,"y":559,"width":640,"height":11}},{"id":"df9abcab-2656-4194-9633-06c9b8071e09","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":77,"box":{"x":69,"y":574,"width":791,"height":11}},{"id":"e3900004-7897-4f58-ae60-11ca9f790756","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":77,"box":{"x":69,"y":589,"width":826,"height":11}},{"id":"51731db7-09e0-47b2-a2f7-ce97ea52d22c","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":77,"box":{"x":68,"y":604,"width":801,"height":11}},{"id":"16b6bbe5-ed04-4b31-9377-447a745adcef","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":77,"box":{"x":69,"y":619,"width":740,"height":11}},{"id":"5974b244-20b9-48d6-a32c-52e8cc5cb60f","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":77,"box":{"x":102,"y":642,"width":245,"height":11}},{"id":"52106126-d524-473f-b0ea-2fc8c5e86023","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":77,"box":{"x":354,"y":642,"width":521,"height":11}},{"id":"5adae289-67b6-4504-932f-3440d5eb7dca","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":77,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"cc0e1d14-0854-4860-9b62-f6c97b207035","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":77,"box":{"x":69,"y":672,"width":774,"height":11}},{"id":"cd6b8371-7757-4ba7-8333-0c145d3d4a3b","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":77,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"93465a92-5b7a-4df1-9cfa-9381aec56d1f","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":77,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"3badc257-9435-442b-8758-17552377973a","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":77,"box":{"x":69,"y":717,"width":805,"height":11}},{"id":"e388246d-cb4c-4d1e-92b9-e7268110806a","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":77,"box":{"x":69,"y":733,"width":654,"height":11}},{"id":"5a65f611-256a-44cf-897a-87a9718f145e","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":77,"box":{"x":101,"y":755,"width":794,"height":11}},{"id":"86cf9122-0af9-48ce-bd4d-0270aba330f2","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":77,"box":{"x":68,"y":770,"width":748,"height":12}},{"id":"e0c6d9c6-59a0-4ea3-aaf5-391caa1cf313","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":77,"box":{"x":70,"y":785,"width":789,"height":12}},{"id":"c3866df6-04bb-4ffc-aec0-2d332093ab75","block_type":"box","text":"geographic events that affect the reference instrument. An ETN that is tied to a reference instrument may not","page_number":77,"box":{"x":68,"y":801,"width":783,"height":11}},{"id":"314b1232-e105-47d5-a7fd-4ef5fe33f50e","block_type":"box","text":"replicate the performance of the reference instrument. ETNs also incur certain expenses not incurred by their","page_number":77,"box":{"x":69,"y":816,"width":783,"height":11}},{"id":"83668638-31ba-4e27-b69c-30fd6f5a1b8f","block_type":"box","text":"applicable reference instrument. Some ETNs that use leverage may, at times, be illiquid and may be difficult to","page_number":77,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"65b2d980-ed98-4fe1-b656-6f83eb00b587","block_type":"box","text":"purchase or sell at a fair price. Levered ETNs are subject to the same risk as other instruments that use leverage in","page_number":77,"box":{"x":70,"y":846,"width":825,"height":11}},{"id":"5184bbd0-0396-4439-ac08-eea26b752cb2","block_type":"box","text":"any form. While leverage allows for greater potential return, the potential for loss is also greater. Finally, additional","page_number":77,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"9587a547-c512-4072-ad6b-53bedbc96cad","block_type":"box","text":"losses may be incurred if the investment loses value because, in addition to the money lost on the investment, the","page_number":77,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"00932c6e-c3af-4aec-b62e-7a29972b3211","block_type":"box","text":"loan still needs to be repaid.","page_number":77,"box":{"x":70,"y":891,"width":202,"height":11}},{"id":"7b19b5a3-9f63-4b53-ad36-5bfdc45901a7","block_type":"box","text":"II-30","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"94d83478-b543-4b58-b478-2f2ddee59b91","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c7623f1-5e87-40f2-a3b7-dde5a6af42cb","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":78,"box":{"x":102,"y":45,"width":774,"height":11}},{"id":"f49358af-4593-4c8f-a4cb-2080f08f3406","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":78,"box":{"x":68,"y":60,"width":788,"height":11}},{"id":"a9f5c8eb-cf10-48d0-b326-60e564bad395","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":78,"box":{"x":69,"y":75,"width":810,"height":11}},{"id":"dd3ce24d-cfb8-4101-a20b-6cbbb6f8718c","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":78,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"0b2566e9-800a-41bf-a480-c5b8742692cc","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":78,"box":{"x":68,"y":105,"width":766,"height":11}},{"id":"14d9aebb-acc0-4e8c-9210-d08775a24cb0","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":78,"box":{"x":70,"y":120,"width":279,"height":9}},{"id":"2a8e1192-f5c6-4ff7-93e7-57cc58824971","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":78,"box":{"x":101,"y":143,"width":791,"height":11}},{"id":"c60ca99b-4aab-4b6a-8fde-2e5d1d7728e5","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":78,"box":{"x":69,"y":158,"width":818,"height":11}},{"id":"680178de-90e9-44aa-8afd-d56b07ea5c6e","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":78,"box":{"x":69,"y":173,"width":547,"height":9}},{"id":"5d998459-a656-475b-91c6-2c8ff693f93f","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":78,"box":{"x":102,"y":196,"width":807,"height":11}},{"id":"0cd54ec8-0219-4bae-a82f-e5ac9f6a497a","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":78,"box":{"x":69,"y":211,"width":819,"height":11}},{"id":"34b4d7b1-39b3-4b1f-99cd-005a29cd337a","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":78,"box":{"x":69,"y":226,"width":581,"height":11}},{"id":"ae69b878-6f16-4225-85cd-aa12b2232125","block_type":"box","text":"Foreign Investments.","page_number":78,"box":{"x":102,"y":249,"width":152,"height":11}},{"id":"92ace150-f711-45d9-8298-3b5c7b2a05c4","block_type":"box","text":"Foreign Investment Risks.","page_number":78,"box":{"x":102,"y":272,"width":182,"height":11}},{"id":"a9199ab3-c071-4baf-9ffe-f8314c1df275","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":78,"box":{"x":291,"y":271,"width":567,"height":12}},{"id":"2fb115d4-8314-4f68-9657-d9ba64a406bc","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":78,"box":{"x":70,"y":286,"width":822,"height":12}},{"id":"1f9b2f49-8b1b-43f3-95db-b59f775b9e95","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":78,"box":{"x":70,"y":302,"width":774,"height":11}},{"id":"57913275-26a0-4585-abbb-e96766d6e482","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":78,"box":{"x":69,"y":317,"width":738,"height":11}},{"id":"881395da-e0b5-4857-a116-ffa1972da945","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":78,"box":{"x":102,"y":339,"width":782,"height":12}},{"id":"44779939-d2e7-4928-a41f-7998af0d7b53","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":78,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"21cfe6f1-cdba-45fb-b65f-beb1da636d51","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":78,"box":{"x":70,"y":370,"width":771,"height":11}},{"id":"afcdc2b4-c9a1-4b30-85fd-b2df0272903d","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":78,"box":{"x":69,"y":385,"width":792,"height":11}},{"id":"19c17145-9aec-45d0-b172-656ab351e3f0","block_type":"box","text":"benchmark index.","page_number":78,"box":{"x":69,"y":400,"width":124,"height":9}},{"id":"f1b219bf-e8e8-49d2-8bfc-6ce9286ef671","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":78,"box":{"x":102,"y":423,"width":767,"height":11}},{"id":"45cdefc8-badf-435b-93e4-9fa2248f14c1","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":78,"box":{"x":68,"y":438,"width":742,"height":11}},{"id":"cc57120c-f1e3-467d-890d-4d37287c7ea1","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":78,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"43c4f699-8083-461f-b4f3-7180a7e12cb4","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":78,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"0b5b8f58-50cf-4b6b-b006-9902070a72ad","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":78,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"47f12f15-6e2f-4c20-ba8b-acdae1f69d84","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":78,"box":{"x":69,"y":498,"width":794,"height":11}},{"id":"0e17c70f-9b51-425d-98b6-bffb7005f3df","block_type":"box","text":"securities and zero-coupon securities.","page_number":78,"box":{"x":69,"y":514,"width":268,"height":10}},{"id":"f7cbe0a0-4ebd-4182-b953-be6d3e9aa74d","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":78,"box":{"x":102,"y":536,"width":785,"height":11}},{"id":"80fcebf6-8dff-46f0-9421-617838ef1e3f","block_type":"box","text":"taxes.","page_number":78,"box":{"x":68,"y":552,"width":42,"height":8}},{"id":"d0cbbee4-26e7-4038-a277-0a15cdd0d14a","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":78,"box":{"x":101,"y":574,"width":798,"height":11}},{"id":"95aaded8-00ba-4bd2-9288-a53f97c53bf5","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":78,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"b73b503c-b48c-4af8-a50c-6304e91d0632","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":78,"box":{"x":70,"y":604,"width":792,"height":11}},{"id":"4b181f5b-5ee7-449e-b1af-cba19ef83e3a","block_type":"box","text":"underlying security (i.e., the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":78,"box":{"x":69,"y":619,"width":840,"height":11}},{"id":"a3bd7e47-614e-4cba-add8-ddcce1bf8b9a","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":78,"box":{"x":70,"y":634,"width":809,"height":12}},{"id":"e20227e2-c6fc-49da-a3f1-2c7cbc85609f","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":78,"box":{"x":68,"y":649,"width":800,"height":12}},{"id":"f9a92455-eda6-4987-b8d5-1e59b83d3b22","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":78,"box":{"x":69,"y":665,"width":815,"height":11}},{"id":"19b98f7c-68dd-4b6d-b6da-319fa42f56db","block_type":"box","text":"Foreign Market Risk.","page_number":78,"box":{"x":102,"y":687,"width":144,"height":11}},{"id":"a07dc703-9abf-4960-9d37-dac30b0dc3fc","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":78,"box":{"x":254,"y":687,"width":652,"height":11}},{"id":"f2da89a5-24b0-4951-a23a-860794d493e6","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":78,"box":{"x":70,"y":702,"width":797,"height":12}},{"id":"34d39734-3e08-40d7-9bf5-e41c552140fc","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":78,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"e61bf83c-c6ae-4e51-83be-e686adc3201f","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":78,"box":{"x":69,"y":733,"width":836,"height":11}},{"id":"a02c428f-87c2-4cc5-afff-36419b34ba5b","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":78,"box":{"x":70,"y":748,"width":835,"height":11}},{"id":"4a9337c2-0c5d-43fd-b990-bfa401744e84","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":78,"box":{"x":69,"y":763,"width":810,"height":11}},{"id":"4b12f2d0-aa56-41e9-b2bf-f346c7525338","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":78,"box":{"x":70,"y":778,"width":820,"height":11}},{"id":"6c935767-9ebf-4382-809b-9a6ec43aab96","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":78,"box":{"x":68,"y":793,"width":826,"height":11}},{"id":"5d1623b2-f334-4299-9bf1-f9d00b9542d5","block_type":"box","text":"tarrifs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":78,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"5c556934-e1c3-4d46-8e52-fdf8c6bf0e3d","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":78,"box":{"x":69,"y":823,"width":821,"height":12}},{"id":"59fb7c96-c340-4fa6-9456-d6f36ab333b4","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":78,"box":{"x":70,"y":838,"width":807,"height":12}},{"id":"98fa6ae5-7351-40a7-a325-89f629de699c","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":78,"box":{"x":69,"y":853,"width":830,"height":12}},{"id":"b8222583-850d-4357-8b58-de764c25395e","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":78,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"85d20f49-e0eb-43a0-b945-fce1a8160df0","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":78,"box":{"x":69,"y":884,"width":813,"height":11}},{"id":"5a637e0b-f028-4dd7-a54a-5fc99a93b7c0","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":78,"box":{"x":68,"y":899,"width":828,"height":11}},{"id":"f03a81ca-2e8d-480a-a801-a802792dd198","block_type":"box","text":"II-31","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"830bd4b8-4e6c-47eb-a173-21de2f032f23","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8093347e-cce4-4ee5-87d2-31beaaf843e6","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":79,"box":{"x":68,"y":45,"width":782,"height":11}},{"id":"7448b2cb-4088-4ee9-a9f3-3dd16a032c80","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":79,"box":{"x":68,"y":60,"width":796,"height":11}},{"id":"1ba918d1-31b4-4483-98ba-cb6e8717aae4","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":79,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"898de564-4a96-4673-b178-460bcca19c12","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":79,"box":{"x":70,"y":90,"width":768,"height":11}},{"id":"30742c61-3607-4919-927c-5184dd2d8260","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":79,"box":{"x":68,"y":105,"width":813,"height":11}},{"id":"8da676e9-e5eb-4219-b5eb-4637cd07b5d7","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":79,"box":{"x":69,"y":120,"width":814,"height":11}},{"id":"4b07bb2a-99b8-4fdb-addc-d30ada307475","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":79,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"841d4b09-7b7f-45f5-b442-5ca6eca3da49","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":79,"box":{"x":68,"y":150,"width":782,"height":12}},{"id":"f7496eb5-c962-40f7-991e-f9d017dbbd06","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":79,"box":{"x":69,"y":166,"width":830,"height":11}},{"id":"3e7b6da8-9621-4bd5-8aaf-34319d88687d","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":79,"box":{"x":69,"y":181,"width":829,"height":11}},{"id":"6a281fa6-b8e6-4568-a7cb-cbb6001afa34","block_type":"box","text":"Fund’s operations.","page_number":79,"box":{"x":70,"y":196,"width":130,"height":11}},{"id":"726c007d-aa90-4700-97de-06dc276b69e4","block_type":"box","text":"Foreign Economy Risk.","page_number":79,"box":{"x":102,"y":219,"width":158,"height":11}},{"id":"96862557-8b06-4bef-8cd4-0fafb2dfbd77","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":79,"box":{"x":267,"y":218,"width":636,"height":12}},{"id":"e7a2d598-b35f-4b13-b761-f6e103445c3f","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":79,"box":{"x":70,"y":234,"width":812,"height":11}},{"id":"0b929be1-f5e2-4add-8d65-b45e4b51322f","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":79,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"8581ebfb-612e-4b64-8d35-5aebeb9d1e2a","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":79,"box":{"x":69,"y":264,"width":795,"height":11}},{"id":"530fba52-2f0c-4592-a94f-6dce289cc689","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":79,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"a8d3f881-5d93-4a62-a14f-bcd7051d27df","block_type":"box","text":"measures.","page_number":79,"box":{"x":69,"y":296,"width":74,"height":7}},{"id":"f0d7124f-817d-4b15-b191-918b0bd9b2a6","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":79,"box":{"x":102,"y":317,"width":240,"height":11}},{"id":"2e1bc729-baac-46b7-8bf7-f51842643c20","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":79,"box":{"x":349,"y":317,"width":534,"height":11}},{"id":"a09cea30-5f5e-479e-807e-603b6f980d1c","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":79,"box":{"x":70,"y":332,"width":838,"height":11}},{"id":"348009df-8220-46fa-aa8f-3dc6393a5f7a","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":79,"box":{"x":69,"y":347,"width":833,"height":11}},{"id":"216b882d-9178-4372-a39e-45615827acbe","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":79,"box":{"x":69,"y":362,"width":801,"height":11}},{"id":"c4e3cc8d-6a85-4558-a277-3da227e5196b","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":79,"box":{"x":69,"y":377,"width":808,"height":12}},{"id":"f7b5d24d-5800-4448-ad8c-673a5412f439","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":79,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"d22bcb22-529c-408d-951e-ca9544ff5d44","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":79,"box":{"x":69,"y":407,"width":814,"height":12}},{"id":"dca02ddf-931c-4b2e-8345-99ff336240d2","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":79,"box":{"x":68,"y":423,"width":771,"height":11}},{"id":"552cb1bf-58da-474b-a14e-6aa5f56ca9b7","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":79,"box":{"x":68,"y":438,"width":813,"height":11}},{"id":"32f098d0-469e-490e-aff4-e84323fffd63","block_type":"box","text":"United States or abroad.","page_number":79,"box":{"x":70,"y":453,"width":172,"height":9}},{"id":"6aa4faa7-6df6-4d5f-84a3-739078a4adca","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":79,"box":{"x":102,"y":476,"width":466,"height":11}},{"id":"32e1692d-82b9-45db-9d6a-eaf7c5ba53e0","block_type":"box","text":"Many foreign governments supervise and","page_number":79,"box":{"x":575,"y":475,"width":293,"height":12}},{"id":"33ae524f-5c55-4cb0-ae9b-db4f176dd3d9","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":79,"box":{"x":69,"y":491,"width":828,"height":11}},{"id":"eed9c781-b01f-460d-bb25-e0ec86cfb6ed","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":79,"box":{"x":69,"y":506,"width":826,"height":11}},{"id":"6a7deeef-c09b-43a7-b923-6d7fb6b66af9","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":79,"box":{"x":69,"y":521,"width":778,"height":11}},{"id":"a215db15-170e-4422-bed4-098038ec6010","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":79,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"5e632d6e-beb9-4d24-bc43-ec1ed8557489","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":79,"box":{"x":69,"y":551,"width":831,"height":11}},{"id":"bddb6fcb-177b-4d13-861c-5a3d6182c30e","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":79,"box":{"x":69,"y":566,"width":840,"height":11}},{"id":"9856b6e5-9742-483f-b8c2-8f56f5109f0f","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":79,"box":{"x":69,"y":581,"width":760,"height":11}},{"id":"0d94ae4e-6e1b-41a8-8b10-81d800f58836","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":79,"box":{"x":69,"y":596,"width":803,"height":12}},{"id":"71976118-6063-44e6-9866-dc70c3d30363","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":79,"box":{"x":69,"y":612,"width":798,"height":11}},{"id":"fcde5402-3172-49ca-989e-d158864c36ba","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":79,"box":{"x":69,"y":627,"width":793,"height":11}},{"id":"c5055ffa-91a8-4bbd-955b-f2536bc481da","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":79,"box":{"x":69,"y":642,"width":797,"height":11}},{"id":"01e0dca0-a179-4e7a-a470-1a907af6d7a0","block_type":"box","text":"investments.","page_number":79,"box":{"x":70,"y":657,"width":89,"height":9}},{"id":"03913c57-3c98-4129-b6a1-053191404541","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":79,"box":{"x":102,"y":680,"width":458,"height":11}},{"id":"d8a6f6e1-3f75-4be7-891e-6b3ccb78ef13","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":79,"box":{"x":566,"y":680,"width":341,"height":11}},{"id":"e61d1a49-9ee7-4a3d-a86d-a3d1320f1eeb","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":79,"box":{"x":69,"y":695,"width":819,"height":11}},{"id":"09671426-8b84-42c1-ad9e-70b38abfd69d","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":79,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"ee2b79a6-8dfd-44ff-b09a-520f31660e21","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":79,"box":{"x":68,"y":725,"width":838,"height":11}},{"id":"2b1836e4-3ff4-481b-9675-a3eb054fd58d","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":79,"box":{"x":69,"y":740,"width":835,"height":11}},{"id":"007daad6-c072-4d07-9933-5a43413fcfd2","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":79,"box":{"x":68,"y":755,"width":777,"height":11}},{"id":"3ff47f85-d0da-4ab0-a71d-801b63049e8e","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":79,"box":{"x":69,"y":770,"width":831,"height":12}},{"id":"8c92a75f-9283-428b-9310-021b5e5b5a80","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":79,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"0f376492-9d89-4ba3-892e-71fdf990f59f","block_type":"box","text":"States.","page_number":79,"box":{"x":69,"y":801,"width":49,"height":9}},{"id":"63866f80-5662-4862-b2f0-6260df249547","block_type":"box","text":"Publicly Available Information.","page_number":79,"box":{"x":102,"y":823,"width":210,"height":11}},{"id":"ba47ec0e-5d32-450e-a6b7-162218e9ab90","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":79,"box":{"x":319,"y":823,"width":558,"height":12}},{"id":"c0f8d141-b5c7-4083-af7c-4aecb7fa9ab8","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":79,"box":{"x":68,"y":838,"width":779,"height":12}},{"id":"d97cb390-8fcc-4bd1-a418-6a2694f0082d","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":79,"box":{"x":69,"y":853,"width":793,"height":12}},{"id":"84a2c2a0-1c87-4052-89f7-2128be7d50cf","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":79,"box":{"x":68,"y":869,"width":834,"height":11}},{"id":"5b2e858c-a096-4e4c-a49c-cc6f5949f858","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":79,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"25feba70-c3e5-483a-b809-5a5f9027d89e","block_type":"box","text":"II-32","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d53ec0d8-2dad-4cf4-a21b-7157f3e0a546","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a66e95c9-2d9d-498c-8218-04c1c077f46a","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":80,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"873d412f-71a3-4560-915f-deb8e9217eb7","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":80,"box":{"x":68,"y":60,"width":827,"height":11}},{"id":"5df9f49a-fcb5-45a8-9bdc-cdeaca3162c5","block_type":"box","text":"United States.","page_number":80,"box":{"x":70,"y":75,"width":99,"height":9}},{"id":"bde2ade2-09f4-472d-809c-f0674ada8440","block_type":"box","text":"Settlement Risk.","page_number":80,"box":{"x":102,"y":98,"width":116,"height":9}},{"id":"d07c2a83-f749-41c7-a0b3-ecaca00d43e1","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":80,"box":{"x":225,"y":98,"width":669,"height":11}},{"id":"cb2b2bb3-fb9e-49be-826d-23b036372e90","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":80,"box":{"x":70,"y":113,"width":837,"height":11}},{"id":"cb677dbf-e617-4feb-94ce-3c4dad39a07b","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":80,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"3e943798-1da1-4223-a17c-1e85acedf340","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":80,"box":{"x":69,"y":143,"width":772,"height":11}},{"id":"b205db9b-0e41-42dc-bf8e-83b63d5f953c","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":80,"box":{"x":102,"y":166,"width":781,"height":11}},{"id":"f0280132-8226-458b-9c42-2d9c573cb00c","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":80,"box":{"x":69,"y":181,"width":771,"height":11}},{"id":"bc5534b8-e72f-4188-b2a7-ade664b325dd","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":80,"box":{"x":69,"y":196,"width":797,"height":11}},{"id":"64fbcfeb-2abe-458f-9330-007c70b0de2e","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":80,"box":{"x":68,"y":211,"width":802,"height":11}},{"id":"5c0e36c2-1553-4d64-894b-20f0ddd4ecef","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":80,"box":{"x":69,"y":226,"width":812,"height":11}},{"id":"c2b3a4d9-e33c-44c2-9f8c-4730b8225e44","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":80,"box":{"x":69,"y":241,"width":821,"height":11}},{"id":"031f665d-b3f2-4f45-aed6-fb4deff9fc48","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":80,"box":{"x":69,"y":256,"width":816,"height":11}},{"id":"1ef840dc-2b76-47e0-a7db-7b73b8456e3a","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":80,"box":{"x":69,"y":271,"width":539,"height":12}},{"id":"d77bc0bb-fc78-4e2b-b093-c244d6c0c6b8","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":80,"box":{"x":102,"y":294,"width":781,"height":11}},{"id":"9b5d02ce-26a7-433f-8c99-a5bd319816f2","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":80,"box":{"x":69,"y":309,"width":810,"height":11}},{"id":"f2511345-8ffb-4a96-8a93-e0978f6caabc","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":80,"box":{"x":69,"y":324,"width":601,"height":11}},{"id":"8ff9017a-4dbb-40a6-8e0e-0e1f850c0105","block_type":"box","text":"Sovereign Debt.","page_number":80,"box":{"x":102,"y":347,"width":111,"height":11}},{"id":"a2e7d528-cb79-4050-94f0-b2248e6b87be","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":80,"box":{"x":221,"y":347,"width":653,"height":11}},{"id":"a542388e-3ea1-4909-a87e-346da2bc2a12","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":80,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"2b400833-4254-43ae-bafd-e778899cd00c","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":80,"box":{"x":69,"y":377,"width":826,"height":12}},{"id":"bf5a9354-30c5-48b3-9212-c16e5a06b9c4","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":80,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"0f76db1a-ce51-4747-82a1-61250066d8a5","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":80,"box":{"x":69,"y":407,"width":809,"height":12}},{"id":"91a4561b-55f4-4a1b-85ef-7f3e03b31b68","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":80,"box":{"x":69,"y":423,"width":832,"height":11}},{"id":"2bd53893-5c05-457e-9b4e-53c8a10be3a7","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":80,"box":{"x":69,"y":438,"width":790,"height":11}},{"id":"5c4c8ae5-bb4c-4814-a933-68466207c6ad","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":80,"box":{"x":69,"y":453,"width":831,"height":11}},{"id":"3624329e-3bbe-4182-a78a-719f10846510","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":80,"box":{"x":70,"y":468,"width":805,"height":11}},{"id":"7c80a4e4-ca1f-469f-9d65-9486ac83ebe3","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":80,"box":{"x":69,"y":483,"width":772,"height":11}},{"id":"01b090d2-f46c-4c80-b8b9-895dfe439062","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":80,"box":{"x":69,"y":498,"width":789,"height":11}},{"id":"6b6515d7-d9ae-4b2f-89f9-fa077e08750e","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":80,"box":{"x":69,"y":513,"width":839,"height":11}},{"id":"1257ff5a-d9ab-4009-8fc7-e53d4b092419","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":80,"box":{"x":69,"y":528,"width":810,"height":12}},{"id":"fa1e63f8-40e0-4053-b634-adda3f63dadf","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":80,"box":{"x":69,"y":543,"width":821,"height":12}},{"id":"1e8d2c59-80f5-4600-b052-48d0620f58f9","block_type":"box","text":"debt.","page_number":80,"box":{"x":69,"y":559,"width":34,"height":9}},{"id":"8bc77de3-5bd9-4967-9ae2-3811226a417d","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":80,"box":{"x":102,"y":581,"width":807,"height":12}},{"id":"638085db-6ce0-4998-bb7b-a4306f3faaf3","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":80,"box":{"x":70,"y":596,"width":814,"height":12}},{"id":"1cd24375-089c-47ed-a5c4-b4a9b77d082e","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":80,"box":{"x":70,"y":612,"width":300,"height":11}},{"id":"14f63238-2cbe-4ef7-a8c4-a1caa54ccf44","block_type":"box","text":"Withholding Tax Reclaims Risk.","page_number":80,"box":{"x":103,"y":634,"width":226,"height":11}},{"id":"4cb666de-67ad-47a1-b435-0a08fc9e7249","block_type":"box","text":"k.","page_number":80,"box":{"x":328,"y":641,"width":3,"height":2}},{"id":"e65b1581-b0de-4971-9a83-d1873c8e07a2","block_type":"box","text":"A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":80,"box":{"x":337,"y":634,"width":534,"height":12}},{"id":"d896c520-7ac5-4201-9cdb-9b7675155431","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":80,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"f60c86fb-4424-4d21-94a8-4d1b7f733c00","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":80,"box":{"x":69,"y":665,"width":795,"height":11}},{"id":"4b522b42-a296-4aaf-8ee7-22abc91d61c3","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":80,"box":{"x":69,"y":680,"width":799,"height":11}},{"id":"9d0de082-a92d-4eba-9606-6c6e6792e5c1","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":80,"box":{"x":68,"y":695,"width":838,"height":11}},{"id":"d7a4771e-94c8-454b-a426-9777f9ad7ba1","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":80,"box":{"x":68,"y":710,"width":807,"height":11}},{"id":"980e5909-4a5c-4f79-8c98-1d8d2b655f81","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":80,"box":{"x":69,"y":725,"width":814,"height":11}},{"id":"d5b2e385-f4fc-4f59-ba28-9304dcdb143d","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":80,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"18721942-87aa-4431-b737-ddadca4be6d1","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":80,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"f3d64e84-941f-40f7-a777-1d755846bfe9","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":80,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"2e1b874f-295f-4a1a-b419-7cf37ff3652e","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":80,"box":{"x":69,"y":785,"width":814,"height":12}},{"id":"34669774-4810-4a8c-bb48-20b17a4dcbe1","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":80,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"533891cd-a9ac-4449-a403-566c82bbcc4f","block_type":"box","text":"in the Fund’s net asset value.","page_number":80,"box":{"x":70,"y":816,"width":209,"height":9}},{"id":"27b22fed-7dd4-4922-ab33-6190a1bbd33c","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":80,"box":{"x":103,"y":838,"width":263,"height":12}},{"id":"9cb088c6-eebe-4e82-a33c-4b296e907897","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":80,"box":{"x":372,"y":838,"width":532,"height":12}},{"id":"0b6aebc6-7efd-4b63-9d56-f2aa0027a21b","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":80,"box":{"x":68,"y":853,"width":773,"height":12}},{"id":"9b2176b2-5685-4adc-9680-3380362b19ac","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":80,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"7d02863f-a692-495b-af3b-6ad8a26672e0","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":80,"box":{"x":69,"y":884,"width":812,"height":11}},{"id":"1f88bd4f-ef20-4d31-9aa9-9c59ef3d2a5d","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":80,"box":{"x":69,"y":899,"width":803,"height":11}},{"id":"ee148ae3-c915-4b38-a44d-19c7d4ef943a","block_type":"box","text":"II-33","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8cabb1d8-7673-4f80-942c-68422b26970a","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf6d6fbc-6c16-44a9-974f-26631ee1b6dc","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":81,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"8a0d3cb5-5b18-411c-b43b-d50b117d9a4b","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":81,"box":{"x":69,"y":60,"width":819,"height":11}},{"id":"8b58c49c-ac59-407d-93c2-4f06db332ae7","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":81,"box":{"x":68,"y":75,"width":746,"height":11}},{"id":"915cea87-cae3-4b2b-93f2-ed83743369de","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":81,"box":{"x":101,"y":98,"width":787,"height":11}},{"id":"b166936e-5d6b-47b5-b41c-fd01f827ce26","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":81,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"f45033c8-45ce-47f9-bbc8-f547ef964872","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":81,"box":{"x":70,"y":128,"width":817,"height":11}},{"id":"ad96eeb9-3e67-4812-8666-e6d7fea7eb39","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":81,"box":{"x":70,"y":143,"width":791,"height":11}},{"id":"47116947-d25c-463f-be93-040a9b9f1e8d","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":81,"box":{"x":68,"y":158,"width":803,"height":11}},{"id":"49924b97-2ce2-4f87-b78e-3ac3791d66fd","block_type":"box","text":"Fund may invest.","page_number":81,"box":{"x":70,"y":173,"width":117,"height":11}},{"id":"d15e3b57-9e3c-4743-bbad-b29b09e83b2f","block_type":"box","text":"Funding Agreements.","page_number":81,"box":{"x":102,"y":196,"width":154,"height":11}},{"id":"504518bd-1b84-444c-9d5b-1e0b9a5069b1","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":81,"box":{"x":262,"y":196,"width":584,"height":11}},{"id":"a0af6dbf-fba5-424f-b2ec-62bb25d3f964","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":81,"box":{"x":69,"y":211,"width":773,"height":11}},{"id":"7f90e4ca-5624-448e-9387-3b4d794d1079","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":81,"box":{"x":70,"y":226,"width":761,"height":11}},{"id":"20ce70a6-a919-42af-a61f-19dbf07e0fa7","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":81,"box":{"x":68,"y":241,"width":817,"height":11}},{"id":"090e4f7a-05b7-4001-8e0f-cb665b3facc5","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":81,"box":{"x":69,"y":256,"width":794,"height":12}},{"id":"5f20cd67-0c22-4c9a-bcd1-b1886a429cb2","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":81,"box":{"x":68,"y":271,"width":839,"height":12}},{"id":"3112517e-6c62-454f-a90f-4f277950406e","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":81,"box":{"x":69,"y":286,"width":806,"height":12}},{"id":"60b3cfe0-cb00-4bb5-b54f-021cf5e151d2","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":81,"box":{"x":69,"y":302,"width":700,"height":11}},{"id":"80b67b3c-ae62-47f8-a3f8-db69370e41d2","block_type":"box","text":"Guarantees.","page_number":81,"box":{"x":102,"y":324,"width":87,"height":9}},{"id":"70781c94-6bfd-4950-96a8-4db63a5770e6","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":81,"box":{"x":194,"y":324,"width":685,"height":12}},{"id":"b31a5926-7835-4770-99d0-33f89498ba20","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":81,"box":{"x":70,"y":339,"width":797,"height":12}},{"id":"be06903c-5d62-453c-a991-2e9f3292430f","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":81,"box":{"x":70,"y":355,"width":488,"height":11}},{"id":"ec6cabe5-3d6c-416b-9280-2e8dd80c9412","block_type":"box","text":"Illiquid Investments.","page_number":81,"box":{"x":102,"y":377,"width":146,"height":11}},{"id":"cc131356-d371-4d44-ada4-9890d7048021","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":81,"box":{"x":255,"y":377,"width":630,"height":11}},{"id":"ac55aabd-808e-4bf4-9fc2-644cc42fda39","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":81,"box":{"x":70,"y":392,"width":787,"height":12}},{"id":"a438ff9b-6913-40df-a20f-ce7f57f4d19e","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":81,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"84ceee27-f393-4252-a74c-0edfe7cf2152","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":81,"box":{"x":69,"y":423,"width":834,"height":11}},{"id":"90d91c21-0e1b-453c-a15c-6a4c96e6f7f7","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":81,"box":{"x":70,"y":438,"width":838,"height":11}},{"id":"98ec170c-48b6-4200-9e6b-f1f10cd229df","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":81,"box":{"x":69,"y":453,"width":824,"height":11}},{"id":"e0153182-ddef-4e50-a468-1e6680e23cf8","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":81,"box":{"x":69,"y":468,"width":838,"height":11}},{"id":"4c9e0f34-bc8c-4461-813f-8ae27352ebd0","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":81,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"0058762a-3ec7-405b-a10e-d1484e30924e","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":81,"box":{"x":68,"y":498,"width":832,"height":11}},{"id":"84ce94ec-acfe-4f8a-915a-ec544dfdc930","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":81,"box":{"x":70,"y":513,"width":803,"height":12}},{"id":"42950edb-a090-4994-986c-0af107ff5a83","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":81,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"790e1ab5-f7cf-4ea9-ae47-5ef6ad9d7bdf","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. If illiquid","page_number":81,"box":{"x":69,"y":543,"width":781,"height":12}},{"id":"f30a9c05-f141-4884-a1e9-53ef7df40e0d","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":81,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"c0c52f90-5323-416d-b6bc-f1b86037ae32","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":81,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"7ad6b164-71da-42e2-b70b-9c9f65b5e80f","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":81,"box":{"x":69,"y":589,"width":813,"height":11}},{"id":"f097f67e-ab6d-4dfe-b220-e52b6b4ef767","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":81,"box":{"x":70,"y":604,"width":814,"height":11}},{"id":"0b86ad3b-1a24-46d4-9c8a-e9ac0afb0661","block_type":"box","text":"market opportunities. The risks associated with illiquidity will be particularly acute where a Fund’s operations require","page_number":81,"box":{"x":69,"y":619,"width":833,"height":11}},{"id":"c7fe2a37-238d-43ce-89cd-eadc8c041816","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":81,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"c50f4368-a2de-4c2e-a7a7-541e07c95e40","block_type":"box","text":"short-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":81,"box":{"x":69,"y":649,"width":651,"height":12}},{"id":"75091fe0-273d-48d6-b6ee-fbbc71d50cca","block_type":"box","text":"Index Funds.","page_number":81,"box":{"x":102,"y":672,"width":91,"height":9}},{"id":"97812446-955f-410c-ac36-707dd2f205df","block_type":"box","text":"Cash Flows; Expenses.","page_number":81,"box":{"x":102,"y":695,"width":162,"height":11}},{"id":"663e7b81-2a80-4ce4-b18d-c6f97871bcdb","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":81,"box":{"x":270,"y":695,"width":613,"height":11}},{"id":"16b02f74-6f76-4626-bff3-f760634e595d","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":81,"box":{"x":68,"y":710,"width":803,"height":11}},{"id":"952d1a2f-e39d-44c7-92a5-8e3d1310b4ce","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":81,"box":{"x":70,"y":725,"width":810,"height":11}},{"id":"3148a945-b522-44a1-8946-4bf9dbc0a57e","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":81,"box":{"x":68,"y":740,"width":823,"height":11}},{"id":"cae412f3-f60c-4135-8288-ed8a5d2aa273","block_type":"box","text":"the investment performance of each index is a hypothetical number which does not take into account brokerage","page_number":81,"box":{"x":68,"y":755,"width":799,"height":11}},{"id":"62d8e068-31c8-4616-ad43-8a2913437b47","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":81,"box":{"x":69,"y":770,"width":831,"height":12}},{"id":"e7faa613-d910-4d27-b887-47ef79aa4502","block_type":"box","text":"(","page_number":81,"box":{"x":69,"y":786,"width":3,"height":10}},{"id":"2521c437-d86f-48ff-9f2a-d0e6c4b55cda","block_type":"box","text":"e.g.","page_number":81,"box":{"x":74,"y":787,"width":25,"height":10}},{"id":"cec341e2-f088-47ad-b604-ee6361e0b838","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":81,"box":{"x":101,"y":785,"width":749,"height":12}},{"id":"0bad5afe-7242-456c-ac8d-5208af754ed4","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":81,"box":{"x":69,"y":801,"width":774,"height":11}},{"id":"482a3dd5-8bef-430a-b55d-ff452263e5e4","block_type":"box","text":"particular security as an investment.","page_number":81,"box":{"x":70,"y":816,"width":258,"height":11}},{"id":"d3d29861-f8ce-4c64-b216-7ea2b0b0f252","block_type":"box","text":"Tracking Error Risk","page_number":81,"box":{"x":103,"y":839,"width":132,"height":11}},{"id":"6d3d531f-2f68-4bb1-ba2c-aff2c1915f95","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":81,"box":{"x":236,"y":838,"width":658,"height":12}},{"id":"32b1e2ae-f8e1-4251-a5ee-b966f14734d8","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":81,"box":{"x":68,"y":853,"width":827,"height":12}},{"id":"a5786713-3870-462b-bd65-52906e715db1","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":81,"box":{"x":70,"y":869,"width":830,"height":11}},{"id":"af3e9fa3-bcc9-4109-ab3b-838fd8cd9bb3","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":81,"box":{"x":69,"y":884,"width":827,"height":11}},{"id":"9111cc49-365c-4167-b981-e862d4df64d3","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":81,"box":{"x":68,"y":899,"width":797,"height":11}},{"id":"30872e33-6390-4432-90ce-f4698207372d","block_type":"box","text":"II-34","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"011f9165-a028-458f-86df-ab62024d4028","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"408e248b-f05b-4d5b-822f-7d195769f16c","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":82,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"d2f6cf94-4c46-4e19-85dd-0c5acda58653","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":82,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"575fbb8f-d5a6-465c-9ad0-73d24fc6d351","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":82,"box":{"x":69,"y":75,"width":838,"height":11}},{"id":"e2b64656-21ef-4c18-ab9b-0c2097c658eb","block_type":"box","text":"complying with various new or existing regulatory requirements. 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Bloomberg is not responsible for nor has it reviewed any","page_number":83,"box":{"x":70,"y":589,"width":809,"height":11}},{"id":"08a12cfb-d6e9-4735-88ea-c2da50c929ee","block_type":"box","text":"Fund nor any associated literature or publications, and Bloomberg makes no representation or warranty, express or","page_number":83,"box":{"x":70,"y":604,"width":821,"height":11}},{"id":"5c431117-1db8-4882-9dfe-0551ba662909","block_type":"box","text":"implied, as to their accuracy, or completeness, or otherwise.","page_number":83,"box":{"x":70,"y":619,"width":430,"height":11}},{"id":"7b2bd141-7219-4e2c-a071-98de895f59b2","block_type":"box","text":"Bloomberg reserves the right, at any time and without notice, to alter, amend, terminate or in any way change a","page_number":83,"box":{"x":102,"y":642,"width":795,"height":11}},{"id":"e4843ef4-b9f8-4919-8e0c-8e7232d0d433","block_type":"box","text":"Bloomberg Index. Bloomberg has no obligation to take the needs of any particular Fund or its participants or any","page_number":83,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"0a5a4355-dcaf-4697-8d18-1a32290403d2","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":83,"box":{"x":69,"y":672,"width":735,"height":11}},{"id":"10d167c8-9c51-4347-8732-c7d9baae485c","block_type":"box","text":"ICE BofA Indexes.","page_number":83,"box":{"x":102,"y":695,"width":124,"height":9}},{"id":"17a396b5-2404-411a-b80f-01f9552f2018","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":83,"box":{"x":233,"y":695,"width":670,"height":11}},{"id":"27595a98-5b41-4b28-afab-3fb298f47e39","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":83,"box":{"x":70,"y":710,"width":819,"height":11}},{"id":"089b008a-caac-49b4-99aa-e8f64a51313b","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":83,"box":{"x":69,"y":725,"width":820,"height":11}},{"id":"ad3a1f61-0002-44a7-960d-01a34c29f374","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":83,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"867889fd-6d4f-48ee-bd65-9b1c650aa799","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":83,"box":{"x":70,"y":755,"width":785,"height":11}},{"id":"121a5d1e-c3f5-4ec9-82ca-d3e747c38080","block_type":"box","text":"completeness, or otherwise.","page_number":83,"box":{"x":69,"y":771,"width":202,"height":10}},{"id":"923c6f59-900c-4868-93ef-a70d85403728","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":83,"box":{"x":102,"y":793,"width":779,"height":11}},{"id":"101aac64-51e4-4e7f-b7c2-2428c07f3bc3","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":83,"box":{"x":70,"y":808,"width":825,"height":11}},{"id":"2fa876cb-616e-4a4c-ad29-6fdca0b975d8","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":83,"box":{"x":70,"y":823,"width":608,"height":12}},{"id":"46c8bf0b-6a9a-46ef-b191-e4a56043e5e8","block_type":"box","text":"Indexed and Inverse Securities.","page_number":83,"box":{"x":102,"y":846,"width":228,"height":9}},{"id":"54de3fd6-6df8-4ecc-afab-ecf49bb253ca","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":83,"box":{"x":336,"y":846,"width":523,"height":11}},{"id":"8a6c8038-5d24-403f-8b51-6a7a5b547029","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":83,"box":{"x":70,"y":861,"width":831,"height":11}},{"id":"52333a6b-29a7-4fba-8d4e-13077cf76e4c","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":83,"box":{"x":70,"y":876,"width":814,"height":11}},{"id":"17002846-f16d-4008-88f1-34c581c16756","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":83,"box":{"x":68,"y":891,"width":830,"height":11}},{"id":"0f5c2fa5-6f40-4842-830d-e6a500a78ade","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":83,"box":{"x":69,"y":906,"width":827,"height":12}},{"id":"1a780c5f-56df-46e2-8147-fb42c0b7e245","block_type":"box","text":"II-36","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"adc7c0b7-1d5b-442d-ac04-9e5cf478165f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d16d1991-4d1f-4331-b559-27a69ca48504","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":84,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"2f1037c9-bee5-4206-be88-38d3351a09dc","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":84,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"8b9c37ac-fb2a-4afb-9f7c-4c6a217f1da8","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":84,"box":{"x":69,"y":75,"width":781,"height":11}},{"id":"487d4caf-4c5c-4605-8fc3-67666d69fb83","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":84,"box":{"x":70,"y":90,"width":838,"height":11}},{"id":"26bd049d-a687-46a6-a522-faf4ac3d132b","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":84,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"595f15da-9899-44fd-a7f8-1d4e0f5b283d","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":84,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"72be6f12-0fbb-4676-a8dc-084daece4af5","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":84,"box":{"x":70,"y":135,"width":835,"height":12}},{"id":"002c1cf9-341f-40ce-b486-51ea2415e750","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":84,"box":{"x":70,"y":151,"width":817,"height":11}},{"id":"9677c64d-496e-4b01-8fa1-eae1f5b601ac","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":84,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"6427fbf2-d752-4e7d-8d9a-b8aaed8afb15","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":84,"box":{"x":69,"y":181,"width":804,"height":11}},{"id":"08971c25-920b-4ec4-b32c-fb4dbf9ed6af","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":84,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"09c7b019-58d7-43bd-8b77-9c005b5d75be","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":84,"box":{"x":69,"y":211,"width":819,"height":11}},{"id":"2d81806c-d516-4752-b1f7-d8e283ea0f58","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":84,"box":{"x":69,"y":226,"width":798,"height":11}},{"id":"b6ba7e9b-d9a7-4fa7-8638-01d5eee09068","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":84,"box":{"x":70,"y":241,"width":829,"height":11}},{"id":"d8bcd42e-1686-4bd5-90e8-2e0b4c79ccf0","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":84,"box":{"x":70,"y":256,"width":834,"height":12}},{"id":"ad96cf42-5826-4822-a544-e9defa6f61c1","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":84,"box":{"x":70,"y":271,"width":839,"height":12}},{"id":"52b45b7c-3c58-4e4f-b844-ca7768536a59","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":84,"box":{"x":69,"y":287,"width":781,"height":11}},{"id":"beee2817-5ec8-4c5c-98bb-85bef1fa88f8","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":84,"box":{"x":70,"y":302,"width":812,"height":11}},{"id":"8693d9c0-e566-44f6-bdda-f296bb3e89e9","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":84,"box":{"x":69,"y":317,"width":553,"height":11}},{"id":"30ffe94a-53d8-4855-950c-9a5625e0b3bd","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":84,"box":{"x":101,"y":339,"width":741,"height":12}},{"id":"fab67d1b-4c49-4029-bd93-061484ad40f9","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":84,"box":{"x":69,"y":355,"width":815,"height":11}},{"id":"0bacc042-6487-40d9-8436-500d1182f223","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":84,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"e86f7168-a7e7-4e24-92be-1f3b887414a1","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":84,"box":{"x":68,"y":385,"width":805,"height":11}},{"id":"1d122884-8632-40ea-8ea5-62fa5ccf9093","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":84,"box":{"x":70,"y":400,"width":813,"height":11}},{"id":"902a5b71-b0c5-4d1e-af11-cf02495b784f","block_type":"box","text":"Inflation Risk.","page_number":84,"box":{"x":102,"y":423,"width":100,"height":9}},{"id":"5e323174-5083-417f-9414-cf2321cd73f7","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":84,"box":{"x":209,"y":423,"width":663,"height":11}},{"id":"a26a628d-bf7f-4071-a764-67813266465a","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":84,"box":{"x":68,"y":438,"width":820,"height":11}},{"id":"7ad036d3-df83-48bd-9331-b783693ce3a9","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":84,"box":{"x":70,"y":453,"width":792,"height":11}},{"id":"f40bf4df-f8b1-4d92-8cc1-48945104d94a","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":84,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"d87c2b72-d693-4546-8f18-3188ca0638ba","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":84,"box":{"x":69,"y":483,"width":497,"height":11}},{"id":"3a0d8e7a-d9ad-462f-923d-a73340b3e89f","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":84,"box":{"x":102,"y":506,"width":253,"height":11}},{"id":"bd3d0057-43f4-4bab-a43c-ca8b6574f492","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":84,"box":{"x":361,"y":506,"width":540,"height":11}},{"id":"b2362169-7216-40a2-ae2b-268d60f6455a","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":84,"box":{"x":68,"y":521,"width":836,"height":11}},{"id":"de2bd832-f08a-4757-a695-36f6ff446460","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":84,"box":{"x":69,"y":536,"width":815,"height":11}},{"id":"7919cbdd-273f-4687-a62c-08fb7bf58cfa","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":84,"box":{"x":69,"y":551,"width":795,"height":11}},{"id":"1d38af8c-2164-4748-a483-fabe67c762e1","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":84,"box":{"x":69,"y":566,"width":829,"height":11}},{"id":"51f6a48d-4589-48a0-8c1a-8e0a88d1405c","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":84,"box":{"x":69,"y":581,"width":814,"height":12}},{"id":"b5edb83b-92b6-4547-b1a2-dc38c21f707f","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":84,"box":{"x":70,"y":596,"width":813,"height":12}},{"id":"0357cb73-6d06-4fa9-85ea-7be5057924d3","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":84,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"b6247b4e-5c99-49f4-84ef-28758ac44b90","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":84,"box":{"x":68,"y":627,"width":802,"height":11}},{"id":"7930a710-d4f1-48c8-8d93-8668e1f270bd","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":84,"box":{"x":69,"y":642,"width":837,"height":11}},{"id":"9401ff47-c191-4029-811d-ccd92cf8ce2a","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":84,"box":{"x":70,"y":657,"width":832,"height":11}},{"id":"cf30ff9a-c1da-48a3-9fff-e4c5485a6226","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":84,"box":{"x":70,"y":672,"width":777,"height":11}},{"id":"8a12a639-1be9-4618-b4c6-683ba63c3ac3","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":84,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"87fb4248-75c9-4239-b039-67c8e5a0ab9d","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":84,"box":{"x":69,"y":702,"width":823,"height":12}},{"id":"23fbf2c8-4fc8-4358-bafc-3fcf03982b2e","block_type":"box","text":"be available for very limited periods.","page_number":84,"box":{"x":69,"y":717,"width":257,"height":12}},{"id":"31da7a96-432f-4822-b0db-4b8cac638600","block_type":"box","text":"Investment in Emerging Markets.","page_number":84,"box":{"x":102,"y":740,"width":242,"height":11}},{"id":"02511f5a-317c-46ba-8e4f-0a8c69aeb428","block_type":"box","text":"General.","page_number":84,"box":{"x":102,"y":763,"width":58,"height":9}},{"id":"ce80a90b-a3cb-4994-8e7a-02f128a17f93","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":84,"box":{"x":102,"y":785,"width":748,"height":12}},{"id":"53d2cf04-d37c-4810-9a46-618c6e810373","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":84,"box":{"x":69,"y":801,"width":840,"height":11}},{"id":"eb82695b-b9f2-458d-99c1-67b33e51f5b8","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":84,"box":{"x":68,"y":816,"width":813,"height":11}},{"id":"d25db194-7ae3-4e5e-a103-05e7fc2f8e54","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":84,"box":{"x":68,"y":831,"width":836,"height":11}},{"id":"b04be0e9-4eb6-4201-91cd-b6e38cc4c9ac","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":84,"box":{"x":69,"y":846,"width":839,"height":11}},{"id":"c589ad67-1d00-46c9-b1f3-5c024ef0f8fe","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":84,"box":{"x":70,"y":861,"width":831,"height":11}},{"id":"170a2b21-2f43-424f-b611-fd615b9e8765","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":84,"box":{"x":69,"y":876,"width":396,"height":11}},{"id":"a5e072c1-f9d5-4b60-8e61-ac2c4c9a9db8","block_type":"box","text":"II-37","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"acebc16a-2b9b-420b-bdab-afe5de9cfabe","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a09c4973-b3ec-450f-9656-24cadb88c2b5","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":85,"box":{"x":102,"y":45,"width":770,"height":11}},{"id":"489429e1-4cd0-4702-95d3-682570f4e3c2","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":85,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"c3537afc-75fc-4143-8171-3e9ca5a604ba","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":85,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"9fdb83ed-1aec-404e-9f25-4a7b29c09c13","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":85,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"11eb4f48-aee2-466c-ad3b-eb4c790679fb","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":85,"box":{"x":69,"y":105,"width":809,"height":11}},{"id":"744fdcc7-335c-4e36-b55f-e9d642caa6bd","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":85,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"a02bc139-3441-4ab8-9e68-aca58d214bbe","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":85,"box":{"x":69,"y":135,"width":800,"height":12}},{"id":"af49998f-0732-43d0-a03c-6e9d0a98b628","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":85,"box":{"x":69,"y":150,"width":811,"height":12}},{"id":"ab9215cb-2333-40c5-a710-a47708758f39","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":85,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"0edad740-1b29-4b05-bc5d-198ff68e466c","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":85,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"675beb5c-fd46-428b-811a-c53f478625a8","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":85,"box":{"x":70,"y":196,"width":813,"height":11}},{"id":"fc5a240b-499e-4d6b-bf25-496dccccc9fd","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":85,"box":{"x":69,"y":211,"width":694,"height":11}},{"id":"a5192d3d-57e1-4a05-b55f-a889c00ddaa2","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":85,"box":{"x":102,"y":234,"width":767,"height":11}},{"id":"540ed8d7-e06e-4132-b849-4a656cfaf285","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":85,"box":{"x":69,"y":249,"width":814,"height":11}},{"id":"eaf15a62-1fed-4438-870c-e5cb7448ed4b","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":85,"box":{"x":69,"y":264,"width":792,"height":11}},{"id":"d0dc863a-f531-453e-900d-c121f953f9e0","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":85,"box":{"x":69,"y":279,"width":838,"height":11}},{"id":"2647d7c8-5df9-4d34-a287-b3fccf23c65b","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":85,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"f75a9658-2351-4193-a8e7-d739a9cef2fc","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":85,"box":{"x":68,"y":309,"width":816,"height":11}},{"id":"bf6d3c16-cc98-4da8-bc05-f6e86c6a7164","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":85,"box":{"x":70,"y":324,"width":802,"height":11}},{"id":"0a4c157f-8e90-4984-b147-8ec818e9f693","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":85,"box":{"x":70,"y":339,"width":838,"height":12}},{"id":"bc4c291f-5f5b-483f-9ba3-f1d7953c154d","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":85,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"3d8255b3-7486-41d5-bdcf-d030663f06a0","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":85,"box":{"x":69,"y":370,"width":819,"height":11}},{"id":"f5fcfa2c-7b7c-4bef-836e-a1b962028459","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":85,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"f9af776d-3b6b-4b59-ba2f-cf24b7ac51a9","block_type":"box","text":"volatile than investments in more established markets.","page_number":85,"box":{"x":68,"y":400,"width":392,"height":9}},{"id":"bbd47d3e-c033-49f1-97bc-6eac976029b8","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":85,"box":{"x":101,"y":423,"width":805,"height":11}},{"id":"15c7b317-8fa6-48e2-a9d4-709a58414c30","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":85,"box":{"x":69,"y":438,"width":818,"height":11}},{"id":"65742b50-ea0d-46d6-ad8b-fecab937bf06","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":85,"box":{"x":68,"y":453,"width":831,"height":11}},{"id":"fbcf63d0-99b6-4643-bf6e-c8076cf508cb","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":85,"box":{"x":69,"y":468,"width":768,"height":11}},{"id":"7a9ec88a-b275-4957-b216-a09972339477","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":85,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"fd41c6d4-9d23-4729-b657-c7c66302a5d4","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":85,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"5bbafc09-6e6b-4b4b-8862-224c10798236","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":85,"box":{"x":69,"y":513,"width":814,"height":12}},{"id":"7c46bf40-6e80-4784-af40-f75d6e0fac16","block_type":"box","text":"acquisition or disposal of securities.","page_number":85,"box":{"x":69,"y":528,"width":257,"height":11}},{"id":"d80ac65a-d0f9-4c55-b30b-aed3d0bbccfe","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":85,"box":{"x":102,"y":551,"width":800,"height":11}},{"id":"aed6ec79-15b7-4903-8685-973a6e6b42a8","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":85,"box":{"x":70,"y":566,"width":769,"height":11}},{"id":"c0dd95e2-115d-4b51-8e32-1d0f368b24f8","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":85,"box":{"x":69,"y":581,"width":798,"height":12}},{"id":"7845d9d7-4418-44ab-a8fd-4c2eed808cd0","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":85,"box":{"x":69,"y":596,"width":819,"height":12}},{"id":"892e2483-6934-4922-813d-3a93b4475dc2","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":85,"box":{"x":69,"y":612,"width":804,"height":11}},{"id":"e1012a2b-e326-46dc-a2b4-cb3265f93fb0","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":85,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"6a69352e-4352-4e54-af1e-fce2745c3c26","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":85,"box":{"x":102,"y":649,"width":778,"height":12}},{"id":"518b5aa8-082f-4b62-bc13-4be022dcdafc","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":85,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"2781d539-cf00-40f0-aa65-bee58ecf4cc7","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":85,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"19101307-2fb6-4612-a062-92f85f068e03","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":85,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"61e81bb8-e943-4cc1-8b5c-ffcfd2cbc65a","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":85,"box":{"x":68,"y":710,"width":799,"height":11}},{"id":"f9718141-98ef-4598-8655-b62e2bd565f6","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":85,"box":{"x":70,"y":725,"width":829,"height":11}},{"id":"93f96496-70ed-420c-89de-e15883c822f4","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":85,"box":{"x":68,"y":740,"width":740,"height":11}},{"id":"9733647d-5d95-48bb-a531-f57ff6edcb50","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":85,"box":{"x":102,"y":763,"width":305,"height":11}},{"id":"dbe1901b-e8c5-47d7-9c11-55a0e2ffeb40","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":85,"box":{"x":414,"y":763,"width":485,"height":11}},{"id":"9ec0c8da-5b3b-4d9b-b9c6-3ad13dd93c25","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":85,"box":{"x":70,"y":778,"width":832,"height":11}},{"id":"f5958e22-17fb-4cbf-af78-eedff91467d2","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":85,"box":{"x":69,"y":793,"width":808,"height":11}},{"id":"ce08a7b5-dad4-408d-81d9-512a5ac7ba89","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":85,"box":{"x":68,"y":808,"width":838,"height":11}},{"id":"7d84a2ce-cb92-4791-b972-5b8b78e164ff","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":85,"box":{"x":69,"y":823,"width":834,"height":12}},{"id":"5f2125ef-1739-4cf6-b59e-e108484ffdd2","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":85,"box":{"x":70,"y":838,"width":791,"height":11}},{"id":"4ce56626-bbe2-4abb-ae06-fd4fd8a6d2d7","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":85,"box":{"x":69,"y":853,"width":804,"height":12}},{"id":"2c667edc-bfd2-4319-9bdd-906d5f2fe9db","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":85,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"9e27ecb0-88a9-4861-8774-5b748dd8d485","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":85,"box":{"x":69,"y":884,"width":830,"height":11}},{"id":"883d8ba0-100a-4d14-841e-87167277bd24","block_type":"box","text":"II-38","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"39f7cc7b-2456-4c57-9ed9-a8e26065c14b","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ed70629a-921c-4bed-b485-7097540831c3","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":86,"box":{"x":70,"y":45,"width":766,"height":11}},{"id":"1263a482-f74f-49d1-a062-cf043f91a46d","block_type":"box","text":"performance of the Fund.","page_number":86,"box":{"x":70,"y":60,"width":179,"height":11}},{"id":"2c3fd8c1-6a41-4cb4-9962-4ca7334f2ac1","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":86,"box":{"x":102,"y":82,"width":784,"height":12}},{"id":"462e1e97-6ab2-4da3-9b8b-ad8c5121c41c","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":86,"box":{"x":69,"y":98,"width":803,"height":11}},{"id":"79b4c006-9975-4a21-8f64-941d53d1ab5e","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":86,"box":{"x":69,"y":113,"width":788,"height":11}},{"id":"083609ab-95da-4aad-b5a0-1411a4a7dbb0","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":86,"box":{"x":69,"y":128,"width":827,"height":11}},{"id":"aea4170d-da14-4328-93a1-3887e2d5c99b","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":86,"box":{"x":68,"y":143,"width":823,"height":11}},{"id":"1c7e8c58-25a1-42cb-aa3e-758337030bde","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":86,"box":{"x":68,"y":158,"width":822,"height":11}},{"id":"4902124f-4abc-4f75-b94f-1795fb2a810c","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":86,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"cc007599-8d04-41c3-b8ac-14438f7f1dc2","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":86,"box":{"x":69,"y":188,"width":821,"height":12}},{"id":"b9716068-e7e3-49da-90da-aa976373bf2c","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":86,"box":{"x":70,"y":203,"width":827,"height":12}},{"id":"b29d63f7-07d4-464b-8b56-0f333b1239a2","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":86,"box":{"x":70,"y":218,"width":803,"height":12}},{"id":"52ae79f1-220d-4226-9170-7ce56a5d1f22","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":86,"box":{"x":69,"y":234,"width":824,"height":11}},{"id":"dce6609e-c6b9-460b-a130-b16357c13dbd","block_type":"box","text":"affected by a variety of factors.","page_number":86,"box":{"x":69,"y":249,"width":220,"height":11}},{"id":"5652f11f-874b-4880-9aa1-402cda36117f","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":86,"box":{"x":101,"y":271,"width":785,"height":12}},{"id":"5486799c-cc58-4e9a-90c1-8dfbb125da8e","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":86,"box":{"x":70,"y":286,"width":789,"height":12}},{"id":"87f7292c-d03f-42e5-9315-821712581951","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":86,"box":{"x":69,"y":302,"width":814,"height":11}},{"id":"b39844ec-ad86-4b30-a84a-57ef812f64e2","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":86,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"69defa12-7907-407a-b6da-5f9ef1a70a64","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":86,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"49a69780-03c3-451f-95d2-d8a52b12db4c","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":86,"box":{"x":70,"y":347,"width":652,"height":11}},{"id":"d9b30194-42cb-4633-8dcc-718989a558cf","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":86,"box":{"x":102,"y":370,"width":737,"height":11}},{"id":"10c4d716-00cd-49a7-94c1-278ce4307932","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":86,"box":{"x":69,"y":385,"width":803,"height":11}},{"id":"9cee1685-02eb-4b50-9062-90f8dfaf7a3b","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":86,"box":{"x":69,"y":400,"width":801,"height":11}},{"id":"9c1983aa-bc61-407f-a405-ea50ac37f784","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":86,"box":{"x":69,"y":415,"width":793,"height":11}},{"id":"70d896a5-eb52-4f47-b26c-a733d27e009d","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":86,"box":{"x":69,"y":430,"width":820,"height":11}},{"id":"25e1d4dc-202d-480c-aaa9-3e2b8a6c73eb","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":86,"box":{"x":69,"y":445,"width":839,"height":12}},{"id":"468f1f2a-f03a-40ff-8602-1e5a34575c60","block_type":"box","text":"nations.","page_number":86,"box":{"x":69,"y":461,"width":56,"height":8}},{"id":"b1f2e0de-323b-4d16-a526-355e8e00c614","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":86,"box":{"x":102,"y":483,"width":794,"height":11}},{"id":"bfc87c43-9103-4044-b9d5-4362d5fc2ef3","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":86,"box":{"x":68,"y":498,"width":773,"height":11}},{"id":"9f175f6a-0ccc-4d29-8b9b-9d47c1ff89d0","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":86,"box":{"x":69,"y":513,"width":808,"height":12}},{"id":"198e93ab-131b-442c-8ace-bf8df5d4a540","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":86,"box":{"x":69,"y":528,"width":791,"height":12}},{"id":"c3be673d-a7b1-40c9-9cbb-bd362cb719c7","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":86,"box":{"x":69,"y":543,"width":790,"height":12}},{"id":"242b5d96-9fe6-46fe-a862-09d8872580f4","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":86,"box":{"x":69,"y":559,"width":790,"height":11}},{"id":"6d7b9525-c97f-497c-9cb7-a3fd4d6148ec","block_type":"box","text":"market Asia-Pacific companies.","page_number":86,"box":{"x":69,"y":574,"width":220,"height":11}},{"id":"3c9c0a85-eac4-46c9-960f-809dbc1282bd","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":86,"box":{"x":102,"y":596,"width":780,"height":12}},{"id":"b458cdd5-cda5-4be3-bb0b-057d20c8aa8d","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":86,"box":{"x":69,"y":612,"width":829,"height":11}},{"id":"6561f543-42d9-48b5-a554-103a1fe99726","block_type":"box","text":"services for such securities outside such countries.","page_number":86,"box":{"x":69,"y":627,"width":367,"height":9}},{"id":"52eee547-d992-4474-8a7d-46982a6cf4ed","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":86,"box":{"x":102,"y":649,"width":795,"height":12}},{"id":"5c11c326-9603-43e2-be51-096821c02393","block_type":"box","text":"to commercial banks and foreign governments.","page_number":86,"box":{"x":68,"y":664,"width":335,"height":12}},{"id":"43d4d7b1-815b-4d47-aa8a-ce0d31c91456","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":86,"box":{"x":102,"y":687,"width":788,"height":11}},{"id":"f2310229-3ad6-4971-a680-e472ce8b632b","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":86,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"0bda9ae5-468e-4e89-924c-73f1c5d90f54","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":86,"box":{"x":68,"y":718,"width":450,"height":11}},{"id":"d52e868f-b92f-42f5-b94d-81c4334cff39","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":86,"box":{"x":102,"y":740,"width":782,"height":11}},{"id":"fe5320e2-e54e-47ae-9cd5-b9a94d1f66f0","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":86,"box":{"x":70,"y":755,"width":819,"height":11}},{"id":"aa7c619b-f022-4b4d-9da3-70ee580e0d4f","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":86,"box":{"x":68,"y":770,"width":711,"height":12}},{"id":"77ec6b71-95ad-4524-b161-30e2c5dfc3a1","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":86,"box":{"x":102,"y":793,"width":435,"height":11}},{"id":"1aa9f025-1f0f-4ccb-b362-bc622fe5e9c8","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":86,"box":{"x":543,"y":793,"width":355,"height":11}},{"id":"9faccaf2-c506-4f8a-8be6-8a5799f4e7d3","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":86,"box":{"x":70,"y":808,"width":817,"height":11}},{"id":"18e9055c-cbef-42e7-bb8f-286f4fb0d362","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":86,"box":{"x":69,"y":823,"width":836,"height":12}},{"id":"fc5da306-4550-4abb-a066-6b0ce1c599a5","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":86,"box":{"x":68,"y":838,"width":828,"height":12}},{"id":"421d8ef0-253e-4f0a-942a-3e931d5b0870","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":86,"box":{"x":69,"y":853,"width":794,"height":12}},{"id":"552ea8c5-fa4e-4085-90b4-0f80cc314654","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":86,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"5082a923-d9b1-444d-a839-4ee74b6da3eb","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":86,"box":{"x":69,"y":884,"width":820,"height":11}},{"id":"b8a3b1ad-4d55-4a38-9c09-13c27a003634","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":86,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"3c2ddd50-b938-42ce-96eb-3068f3555a98","block_type":"box","text":"II-39","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"60239b46-c09e-4db9-84b7-9ef4afe5d8e4","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a54ea43c-8266-43f2-a53b-4a8fc0f9544a","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":87,"box":{"x":69,"y":45,"width":788,"height":11}},{"id":"10e065c7-15ee-4b2f-83fb-e7481688bada","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":87,"box":{"x":70,"y":60,"width":434,"height":11}},{"id":"9bec115e-7a42-4a83-b8e8-87e80e72cc68","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":87,"box":{"x":101,"y":82,"width":787,"height":12}},{"id":"52331e71-44b3-4c34-a354-b7cb81299000","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":87,"box":{"x":68,"y":98,"width":833,"height":11}},{"id":"4e399b6e-48d1-49c3-8d27-6e07fff9e46e","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":87,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"8a1e6578-7fd1-425d-b9d9-d63112bb6281","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":87,"box":{"x":69,"y":128,"width":831,"height":11}},{"id":"0a93914c-a89b-4905-8dcb-6fd20b0a0093","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":87,"box":{"x":68,"y":143,"width":834,"height":11}},{"id":"55fe5807-33a7-473a-90eb-6bb520750193","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":87,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"f52db6f7-9fad-4a62-85fd-e9b8ec178702","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":87,"box":{"x":69,"y":173,"width":800,"height":11}},{"id":"b3381692-34eb-4cb6-a2ad-8d592b4aa5e1","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":87,"box":{"x":69,"y":188,"width":826,"height":12}},{"id":"0e5c7957-edb8-40d1-934e-f0c624345c23","block_type":"box","text":"investment at that time.","page_number":87,"box":{"x":70,"y":204,"width":168,"height":8}},{"id":"9d9b28e5-f88f-41a1-90b2-026042a5ad97","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":87,"box":{"x":102,"y":226,"width":774,"height":11}},{"id":"97421e66-f120-4b19-8630-9e5a5e24c858","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":87,"box":{"x":70,"y":241,"width":803,"height":11}},{"id":"f18eac87-f315-4b75-88e7-308a074169e3","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":87,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"d15473d0-5119-4409-a7b9-7ca808a09800","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":87,"box":{"x":69,"y":271,"width":826,"height":12}},{"id":"7e2fbf89-3cee-4d02-a816-ef825405d7b7","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":87,"box":{"x":69,"y":286,"width":818,"height":12}},{"id":"1d19b4cc-c7a9-460b-b9ee-fb05bb9c700b","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":87,"box":{"x":68,"y":302,"width":826,"height":11}},{"id":"7d5142ef-7063-4b98-9534-ff2c4b66a5c5","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":87,"box":{"x":68,"y":317,"width":800,"height":11}},{"id":"d9d5032a-9122-4237-87ac-f1833bc06ff1","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":87,"box":{"x":69,"y":332,"width":839,"height":11}},{"id":"134704d4-bf91-4a1f-9a31-b085fd4fcc51","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":87,"box":{"x":68,"y":347,"width":798,"height":11}},{"id":"813702f1-ad11-467f-8895-ff419daea7c4","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":87,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"92c8f20b-8206-4c2d-b03f-db8016263356","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":87,"box":{"x":69,"y":377,"width":808,"height":12}},{"id":"d8290c13-bbd8-4916-8f94-1d74f5e469cc","block_type":"box","text":"government).","page_number":87,"box":{"x":68,"y":393,"width":92,"height":11}},{"id":"13107c7c-57f8-474f-a1e1-6c2d4c7663cd","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":87,"box":{"x":102,"y":415,"width":790,"height":11}},{"id":"21d5d80f-f82d-4b6e-9539-87eb2e81b320","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":87,"box":{"x":68,"y":430,"width":828,"height":11}},{"id":"5c842672-3461-4c72-a179-744aac1bbf00","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":87,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"8a0f5f15-4caf-487c-b2e3-81efab2b233d","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":87,"box":{"x":69,"y":460,"width":829,"height":12}},{"id":"1478d0f4-c47a-4427-8d95-184b74662dbf","block_type":"box","text":"foreign banks and other financial institutions.","page_number":87,"box":{"x":68,"y":475,"width":322,"height":12}},{"id":"053d046f-6fc2-4529-8408-f91cb585cf1f","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":87,"box":{"x":102,"y":498,"width":767,"height":11}},{"id":"109f71c8-5ae0-4c20-94c7-0fa80776df1e","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":87,"box":{"x":69,"y":513,"width":814,"height":11}},{"id":"0b46c46d-8163-4db5-8b4d-6a574776e515","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":87,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"87c4dac4-a67f-48c6-87dd-aef568dfa865","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":87,"box":{"x":69,"y":543,"width":812,"height":11}},{"id":"f1be36e3-b83a-4ee1-b7ef-79bda64e1494","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":87,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"eb7e2710-6310-46c7-a4d9-8185ab1fb89c","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":87,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"dfe7c2ee-2aab-424c-a14c-f8e383c0fff8","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":87,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"2a6deb62-d807-4fc1-8335-14639c7d2267","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":87,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"c0df9fbc-9e3c-4755-a4d0-8120ac27aff2","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":87,"box":{"x":68,"y":619,"width":837,"height":11}},{"id":"9f27b43c-f262-4845-aede-cb5ddf9fc4f1","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":87,"box":{"x":70,"y":634,"width":771,"height":12}},{"id":"502238be-5d10-482d-925e-686658323c35","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":87,"box":{"x":69,"y":649,"width":711,"height":12}},{"id":"82ba4897-9889-4039-8dbe-617777037b7f","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":87,"box":{"x":101,"y":672,"width":779,"height":11}},{"id":"342cf244-3eff-46a2-accf-71a4acddcec8","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":87,"box":{"x":68,"y":687,"width":840,"height":11}},{"id":"a74fdd00-af22-4ddc-87fb-8b98fa0dbaa9","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":87,"box":{"x":68,"y":702,"width":838,"height":12}},{"id":"3a260d0a-d36c-4f6b-a3fe-94ebd6670519","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":87,"box":{"x":68,"y":717,"width":802,"height":12}},{"id":"91831f11-3c09-4379-9d74-950226f25199","block_type":"box","text":"foreign securities.","page_number":87,"box":{"x":68,"y":732,"width":127,"height":12}},{"id":"378cf96d-c2c7-41ee-921f-455e114e5347","block_type":"box","text":"Risks of Investments in Russia.","page_number":87,"box":{"x":102,"y":755,"width":224,"height":9}},{"id":"d61b40f6-7007-4c3b-909a-41d983fa89a1","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":87,"box":{"x":332,"y":755,"width":539,"height":11}},{"id":"eef3a03d-6b7d-4c84-a445-e6fbfe199dd4","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":87,"box":{"x":70,"y":770,"width":826,"height":11}},{"id":"29985948-6033-4ecd-a7c6-3c01778cc90b","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":87,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"a5959f64-0214-4ffe-8f38-2cc74ecfb03f","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":87,"box":{"x":69,"y":801,"width":812,"height":11}},{"id":"8f3292d4-fff8-49cf-8773-0250a0b3d2ec","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":87,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"871a0fb8-224b-461d-8192-ef5b681092bd","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":87,"box":{"x":69,"y":831,"width":771,"height":11}},{"id":"7692c3c0-240e-4e3b-8a9c-b69ebe94c544","block_type":"box","text":"developed markets.","page_number":87,"box":{"x":69,"y":846,"width":138,"height":11}},{"id":"0a0068f3-7be5-453f-bf1c-fa7863007abc","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":87,"box":{"x":102,"y":869,"width":751,"height":11}},{"id":"95324f77-3be7-4da3-94b4-8e5b516b9582","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":87,"box":{"x":69,"y":884,"width":839,"height":11}},{"id":"68525615-0cca-4881-929e-e5dff9e4419a","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":87,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"c976d4e4-b66f-48c2-9914-51ca69deb59c","block_type":"box","text":"II-40","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b2a75e5e-41b5-4578-b107-fc118dfd8049","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2689aacb-8aa0-4aa5-9521-973567ff38ce","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":88,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"895b476e-7a0a-4ddb-b38a-7118dbd55b3d","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":88,"box":{"x":69,"y":60,"width":783,"height":11}},{"id":"7dfc5152-49d0-4ee7-9be8-e3d2524be90f","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":88,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"9654aba4-7d0f-4f63-8e36-dead4e6eb397","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":88,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"4c7f0f7b-e4cb-402c-ba8b-8162ec07a605","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities; market loss still","page_number":88,"box":{"x":70,"y":105,"width":831,"height":11}},{"id":"eb6dd0e9-cb6b-4bec-97c2-839011e7889d","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":88,"box":{"x":69,"y":120,"width":797,"height":12}},{"id":"78e5e9f7-d8a2-43c2-a062-da755ad8701d","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":88,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"49a1563d-5114-4823-ae1f-be7cb89bb3e6","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":88,"box":{"x":69,"y":151,"width":827,"height":11}},{"id":"0a3c0a49-04dc-4638-a307-216370317ee5","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":88,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"2b5079ef-cf25-4917-b5f1-b62962289e45","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":88,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"24b6256e-c025-46ff-9833-1a7b07d9ecac","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":88,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"2003dfe8-ce38-407e-9a2c-9aa7ba7b2430","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":88,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"6a072a08-f700-4a45-a787-7f0f654b7f61","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":88,"box":{"x":68,"y":226,"width":723,"height":11}},{"id":"8ed91aee-0fc8-4463-b9f7-d0513857c4f0","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":88,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"a2b56468-dd5a-4eab-bdff-df8edca5828e","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":88,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"4524f7f8-5b9e-4ba0-97a8-ec14efe7e79f","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":88,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"71edf48c-87f4-4bd9-8fe8-4382633f95f5","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":88,"box":{"x":68,"y":294,"width":821,"height":11}},{"id":"f01c9979-9ea4-4d81-aa06-2a3f7d9f87f7","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":88,"box":{"x":69,"y":309,"width":770,"height":11}},{"id":"9365862c-ee8f-4cdd-b40b-c70de7aa79ce","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":88,"box":{"x":69,"y":325,"width":827,"height":11}},{"id":"21083f47-02d4-495c-8c87-2895e1d6e18a","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":88,"box":{"x":68,"y":339,"width":824,"height":12}},{"id":"94963a1c-e229-4167-b271-1a6e62cb479a","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":88,"box":{"x":69,"y":355,"width":814,"height":11}},{"id":"aec39777-e5f4-4d6e-b948-4190a421580e","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":88,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"475cad82-6a83-4799-9845-11228fcf4888","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":88,"box":{"x":69,"y":385,"width":814,"height":11}},{"id":"fefdd92f-7d19-49d0-8dd8-c7b9f63d0ed5","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":88,"box":{"x":69,"y":400,"width":816,"height":11}},{"id":"703d40fe-90bc-4bb1-8d2a-09e8d418b5d1","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":88,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"f54901bd-e3ad-4afd-bc4a-adbc978174f1","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":88,"box":{"x":69,"y":430,"width":829,"height":11}},{"id":"93c0594c-4729-4ebb-b6ec-1bf211b595d0","block_type":"box","text":"sectors globally.","page_number":88,"box":{"x":69,"y":446,"width":112,"height":11}},{"id":"352219bf-f968-4be9-868a-012f47db7b24","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":88,"box":{"x":102,"y":468,"width":745,"height":11}},{"id":"23f7290b-9b7f-4a70-8a32-8acb9dbe254c","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":88,"box":{"x":70,"y":483,"width":826,"height":11}},{"id":"27131cae-ff1f-409c-840a-03f462e169b4","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":88,"box":{"x":70,"y":498,"width":799,"height":11}},{"id":"3c5e9079-9e65-4cbf-b102-b4feaa80ce42","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":88,"box":{"x":70,"y":513,"width":788,"height":12}},{"id":"534282a2-1d88-44a2-8361-ed6fc1b571ec","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":88,"box":{"x":69,"y":528,"width":807,"height":12}},{"id":"e08f5aca-4b40-400a-9512-ef8476fb72bd","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":88,"box":{"x":70,"y":543,"width":782,"height":12}},{"id":"5cc67f80-210a-4397-8d68-0cbe508d4a8a","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":88,"box":{"x":70,"y":559,"width":802,"height":11}},{"id":"d6f8c1b3-ea4b-4d07-88f4-171b0cf3e8be","block_type":"box","text":"These sanctions have resulted and may continue result in the immediate freeze of Russian securities and/or funds","page_number":88,"box":{"x":68,"y":574,"width":822,"height":11}},{"id":"30ebadac-97cb-429a-b1f1-c2841964c9f8","block_type":"box","text":"invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities and/or","page_number":88,"box":{"x":70,"y":589,"width":812,"height":11}},{"id":"aaaec0c2-8f90-48e9-8ac0-3deff18e5f47","block_type":"box","text":"assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may further impair","page_number":88,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"9502cc1f-d640-415d-a906-6c974342dc89","block_type":"box","text":"the value and liquidity of Russian securities.","page_number":88,"box":{"x":68,"y":619,"width":314,"height":11}},{"id":"696d9231-b85e-42c3-8839-7e6e006978bb","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":88,"box":{"x":102,"y":642,"width":241,"height":11}},{"id":"4cb9d047-d978-4d5f-96c8-8978295b1d8d","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":88,"box":{"x":350,"y":642,"width":523,"height":11}},{"id":"994e0352-febe-4488-b386-90c230b8e29f","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":88,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"6447ae88-528b-4658-aa57-557259921c29","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":88,"box":{"x":69,"y":672,"width":814,"height":11}},{"id":"976f7477-37ac-4ecb-b35f-50e2cea01881","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":88,"box":{"x":68,"y":687,"width":793,"height":11}},{"id":"a2429bbb-ab8e-4157-92ac-a1787e8e7eaf","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":88,"box":{"x":70,"y":702,"width":819,"height":12}},{"id":"e2718a2b-855c-4615-9398-a7f0d2bc82d9","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":88,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"f419e23f-2699-49b2-b0e9-fe4298d6ab2e","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":88,"box":{"x":70,"y":733,"width":803,"height":11}},{"id":"57faa496-7e9b-44ff-8f27-8c94ce038d5b","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":88,"box":{"x":69,"y":748,"width":837,"height":11}},{"id":"6a7a9010-cc59-4bce-9cad-65b8f2d8c523","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":88,"box":{"x":69,"y":763,"width":765,"height":11}},{"id":"68cdc8d1-9a8b-409d-85fa-e18ed6ef2241","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":88,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"f58bb3ce-d51e-42f3-a611-f5ae6ab137a1","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":88,"box":{"x":69,"y":793,"width":805,"height":11}},{"id":"bed71a02-d1fa-406a-b3c1-4eb94d592df2","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":88,"box":{"x":69,"y":808,"width":837,"height":11}},{"id":"15fd2773-66b2-4f0e-b70b-6d829bb0c879","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":88,"box":{"x":69,"y":823,"width":826,"height":12}},{"id":"572fd6a4-e4dc-4701-a0f5-124d70e6ff99","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":88,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"bed36cbb-65ed-4d21-b22d-c104609228ae","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":88,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"6eef9b2b-f071-453a-af84-03a6de26c999","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":88,"box":{"x":69,"y":869,"width":797,"height":11}},{"id":"4b5c93ae-d12a-415d-9abf-81e7bc160956","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":88,"box":{"x":68,"y":884,"width":781,"height":11}},{"id":"67a62687-1fc0-4b0f-a285-ba71fa935aff","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":88,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"039928f2-2204-4d54-b9cf-c97c0b50487a","block_type":"box","text":"II-41","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e3b1d7e6-8203-43e7-ac17-f884d651b0db","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d1e2cd27-5f83-491d-bfce-09190a2d2fd1","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":89,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"3c858d22-c7a6-4d96-8c91-9b083ab03901","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":89,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"1ec4b2b0-b589-41b2-9c3e-7dd4269e80d0","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":89,"box":{"x":69,"y":75,"width":823,"height":11}},{"id":"8b6853ea-d5fe-402d-947c-23be4ea28809","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":89,"box":{"x":69,"y":90,"width":791,"height":11}},{"id":"f4f56ffc-279d-4aae-89a7-ce0dc339c0f1","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":89,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"a4284130-2fc6-4c14-ad39-a77030c67ac7","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":89,"box":{"x":68,"y":120,"width":799,"height":12}},{"id":"d87db9c2-6ba7-4563-b2d9-e15dae2f4e70","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":89,"box":{"x":69,"y":135,"width":815,"height":12}},{"id":"d179f072-4464-4f7d-9b08-b8d847c3ffa6","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":89,"box":{"x":68,"y":150,"width":818,"height":12}},{"id":"377fc49a-01b1-4d35-a7c8-4aaca1ffdd9e","block_type":"box","text":"impacted.","page_number":89,"box":{"x":70,"y":166,"width":67,"height":11}},{"id":"6d978025-751e-48b3-ba54-6698ddc83363","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":89,"box":{"x":102,"y":188,"width":773,"height":12}},{"id":"9e6db3f6-1ac0-4de0-b643-cff08f78eaa5","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":89,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"68de847e-876d-48c2-9d86-be889ed175c5","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":89,"box":{"x":70,"y":218,"width":818,"height":12}},{"id":"7f90442c-8e6b-4110-abc8-cfcea66e8523","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":89,"box":{"x":69,"y":234,"width":836,"height":11}},{"id":"9739358b-6466-4a9c-bd50-298c4fd6f0cc","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":89,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"62f7f9b1-4b4f-4a7e-b4b6-e7f48854877f","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":89,"box":{"x":68,"y":264,"width":809,"height":11}},{"id":"b590dc54-4803-4702-abad-becf14371107","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":89,"box":{"x":70,"y":279,"width":790,"height":11}},{"id":"f6a955e0-69b0-44e3-a987-7ad65acc88b7","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":89,"box":{"x":70,"y":294,"width":798,"height":11}},{"id":"10406097-3552-4a13-a23a-0bfb456235c3","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":89,"box":{"x":68,"y":309,"width":781,"height":11}},{"id":"bbc624aa-f546-41db-a5ce-db2bd8ec342a","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":89,"box":{"x":70,"y":324,"width":836,"height":11}},{"id":"321ef48e-616e-4ca7-9ebf-6bf5f3150de3","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":89,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"aa8bdd9c-f01e-4fad-9c6f-c8dfe065fc33","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":89,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"e37be8d8-a4b4-4fc8-8df6-a87538b923ee","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":89,"box":{"x":69,"y":370,"width":790,"height":11}},{"id":"a46fb82f-69aa-4924-ac0c-3dfed5516259","block_type":"box","text":"economy.","page_number":89,"box":{"x":69,"y":387,"width":65,"height":9}},{"id":"a8b8a616-7b79-45ae-b7f1-4e0890647237","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":89,"box":{"x":101,"y":408,"width":747,"height":11}},{"id":"d9cd419f-a4ea-47ea-8f4b-8fb1d6821c7d","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":89,"box":{"x":69,"y":423,"width":776,"height":11}},{"id":"f4db70a4-4d79-4288-9e1f-8155c39d8c8f","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":89,"box":{"x":69,"y":438,"width":836,"height":11}},{"id":"d11f003d-2cc1-4167-ab0e-4664996102e4","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":89,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"4cf23d8c-5e76-48a6-bbfc-586974ba81a0","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":89,"box":{"x":69,"y":468,"width":813,"height":11}},{"id":"c15c684d-c63c-4913-a212-4ddeb0b509eb","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":89,"box":{"x":70,"y":483,"width":822,"height":11}},{"id":"8233aa0d-b049-4384-b6ae-ba13c4df4af3","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":89,"box":{"x":68,"y":498,"width":837,"height":11}},{"id":"3ccf16e0-29b5-49ea-8b8e-4995c7ecda4d","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":89,"box":{"x":69,"y":513,"width":826,"height":12}},{"id":"1eb8091a-5cc2-4eef-a344-00cf98ad77f6","block_type":"box","text":"typically the case for investment managers.","page_number":89,"box":{"x":68,"y":528,"width":309,"height":12}},{"id":"b90ff58c-37c3-47a3-a820-5340f79b818d","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":89,"box":{"x":101,"y":551,"width":806,"height":11}},{"id":"69872be3-b07e-4217-89c1-50e21bef73a2","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":89,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"288bfce9-1c23-41c7-8b38-d6d713ea1c7c","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":89,"box":{"x":70,"y":581,"width":777,"height":12}},{"id":"79214c6c-8977-4c74-84e7-4f504466b277","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":89,"box":{"x":69,"y":597,"width":796,"height":11}},{"id":"1f03ad9a-95b0-4729-aceb-213ab30618e1","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":89,"box":{"x":70,"y":612,"width":830,"height":11}},{"id":"e95f727d-9228-4874-8b0b-a2c2e1215de8","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":89,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"2e889243-c7e0-45b0-8ca8-1ce4a3a43ccd","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":89,"box":{"x":68,"y":642,"width":764,"height":11}},{"id":"48b2cfd4-d109-4c0a-8be0-bfa5b364d9e8","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":89,"box":{"x":69,"y":657,"width":795,"height":11}},{"id":"6c740f58-9734-45e5-80a0-7ff5194975ca","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":89,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"0c63230a-4b77-43ec-bb25-f72922c8c050","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":89,"box":{"x":70,"y":687,"width":829,"height":11}},{"id":"7cabceaa-881c-4cb5-bafc-60b0833d251e","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":89,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"cb8e9eb4-1b64-459b-9825-0ac611b858fa","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":89,"box":{"x":69,"y":717,"width":825,"height":12}},{"id":"04158237-80c5-41e5-988c-cedd64203765","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":89,"box":{"x":70,"y":732,"width":797,"height":12}},{"id":"5f0eac3f-8792-43a7-99ca-2afdf9a0fcce","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":89,"box":{"x":69,"y":748,"width":510,"height":11}},{"id":"7d9af269-079f-4ee0-8cf3-225540ba1f3a","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":89,"box":{"x":102,"y":770,"width":773,"height":12}},{"id":"e8a1d75e-feec-4957-a370-d3a93c53b2c5","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":89,"box":{"x":69,"y":785,"width":820,"height":12}},{"id":"19d423e1-22fd-4f61-b11d-3aa3b7cf61ef","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":89,"box":{"x":69,"y":801,"width":787,"height":11}},{"id":"649157be-c5cc-4c68-bd25-f1944c3832eb","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":89,"box":{"x":70,"y":816,"width":837,"height":11}},{"id":"f781c35d-1e34-43ff-bced-fed5b64211ca","block_type":"box","text":"will be indirectly subject to those risks.","page_number":89,"box":{"x":68,"y":831,"width":277,"height":11}},{"id":"84bac23c-fe15-4ac1-ad21-1f0ccf355400","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":89,"box":{"x":102,"y":853,"width":223,"height":12}},{"id":"98acc601-a30c-4d4a-b3a9-436fb81a9bbe","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":89,"box":{"x":332,"y":854,"width":521,"height":11}},{"id":"c286e71e-f2e6-4033-bb8f-23fbd8a92d8a","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":89,"box":{"x":69,"y":869,"width":829,"height":11}},{"id":"32971123-4874-45d1-939c-5e31d3cc5ce1","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas and its economy is heavily dependent","page_number":89,"box":{"x":70,"y":884,"width":832,"height":11}},{"id":"29edbd56-ba54-4de3-b5ea-35548295e12f","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":89,"box":{"x":69,"y":899,"width":813,"height":11}},{"id":"c7ca193f-dd25-48fc-b8fd-1b0f3bee923e","block_type":"box","text":"II-42","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"24b1b481-346f-4d9e-bf13-4262eb41ba71","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae419c7a-75e6-4af3-93a0-1d0266795b47","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":90,"box":{"x":69,"y":45,"width":804,"height":11}},{"id":"5cc66b01-3a62-4892-910f-d8f971e76746","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":90,"box":{"x":68,"y":60,"width":816,"height":11}},{"id":"b06bbe89-dab1-414f-9852-a2346353ebbc","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":90,"box":{"x":68,"y":75,"width":758,"height":11}},{"id":"0f2c2a03-d754-4b94-835b-bca46a47263a","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":90,"box":{"x":70,"y":90,"width":803,"height":11}},{"id":"5e582ed6-2e88-45d3-ae36-342883030cd5","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":90,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"f0a4e6ee-603c-466d-848d-8034ed108fc9","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":90,"box":{"x":68,"y":120,"width":822,"height":12}},{"id":"71f6ba4a-7df5-409a-aa08-1a2b5e9649a0","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":90,"box":{"x":69,"y":136,"width":827,"height":10}},{"id":"a6cccb41-593b-4eff-a5c7-c8ef389b8e2c","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":90,"box":{"x":68,"y":151,"width":814,"height":11}},{"id":"2f9797cb-0aef-4386-9902-a5a8f3a950cb","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":90,"box":{"x":69,"y":166,"width":787,"height":11}},{"id":"74e9b1ee-694f-49dc-8863-8ba12ae6a25b","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":90,"box":{"x":69,"y":181,"width":766,"height":11}},{"id":"bdb468e4-a0c5-46cb-a3e7-9c830ef9686b","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":90,"box":{"x":68,"y":196,"width":804,"height":11}},{"id":"e76959da-1860-42ee-af88-b48d5145212c","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":90,"box":{"x":69,"y":211,"width":838,"height":11}},{"id":"bdf55c9f-b197-4900-84df-cd2daccc225e","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":90,"box":{"x":69,"y":226,"width":790,"height":11}},{"id":"9e6552ed-c004-4e3a-ad76-4c49628f4d8b","block_type":"box","text":"impact on a Fund’s investments.","page_number":90,"box":{"x":70,"y":241,"width":230,"height":11}},{"id":"5f07bf63-45ab-455c-840c-04ac7f5ba2e7","block_type":"box","text":"Brady Bonds.","page_number":90,"box":{"x":102,"y":264,"width":92,"height":11}},{"id":"fa503023-099d-4ef2-949a-b6fe9c93345c","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":90,"box":{"x":201,"y":264,"width":689,"height":11}},{"id":"39a4aa85-363c-4641-9706-e87255efa1ad","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":90,"box":{"x":69,"y":279,"width":815,"height":11}},{"id":"131f113c-caca-4e9c-8130-1c8a33ccb55c","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":90,"box":{"x":69,"y":294,"width":766,"height":11}},{"id":"1204a444-3f7f-48fc-855b-7c5eef195635","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":90,"box":{"x":69,"y":309,"width":784,"height":11}},{"id":"1e592aff-d281-4981-b03c-0e05a5c3b4bf","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":90,"box":{"x":68,"y":324,"width":837,"height":12}},{"id":"91e38ca0-6365-41c9-866c-4bf22b21818a","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":90,"box":{"x":69,"y":340,"width":839,"height":11}},{"id":"c62ef6b1-3cd2-40ce-83e6-2b0f77c2b561","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":90,"box":{"x":70,"y":355,"width":786,"height":11}},{"id":"b25f38af-9d3f-45d3-9245-9063ffdea3f8","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines,.","page_number":90,"box":{"x":69,"y":370,"width":787,"height":11}},{"id":"4f1aa324-6dcc-4351-ac0f-37aec86ab543","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":90,"box":{"x":102,"y":392,"width":798,"height":12}},{"id":"e9cfbc8e-6727-409d-bda2-8f323c6291f3","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":90,"box":{"x":69,"y":408,"width":780,"height":11}},{"id":"349e7ea8-b272-4990-9209-81fc74246a02","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":90,"box":{"x":69,"y":423,"width":812,"height":11}},{"id":"8a66d479-93b4-4bbd-bcb6-ebdbaf421a44","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":90,"box":{"x":69,"y":438,"width":796,"height":11}},{"id":"3b4ec678-a772-4330-b1b0-52b0ac9ea1fe","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":90,"box":{"x":69,"y":453,"width":812,"height":11}},{"id":"9ad2c7cc-b38d-4a81-9711-1d7183bfb2e7","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":90,"box":{"x":68,"y":468,"width":823,"height":11}},{"id":"f43410c0-135b-43ac-abfb-b0b4047f4bbb","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":90,"box":{"x":68,"y":483,"width":833,"height":11}},{"id":"e19b4990-81cb-4a00-907b-ef0589411d93","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":90,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"4fca2d59-324d-4d83-a0c6-261bc2af4b04","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":90,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"0cd306ef-9c22-40c1-857b-0b7c7c6aea94","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":90,"box":{"x":69,"y":528,"width":835,"height":12}},{"id":"1a80ce7e-30ea-4417-80ef-ae3e7e72bbbf","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":90,"box":{"x":68,"y":543,"width":832,"height":12}},{"id":"07e84e67-ec4d-4fc9-9095-3b6076799eca","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":90,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"4955c667-2a48-4cc2-8054-4794cab996d7","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":90,"box":{"x":69,"y":574,"width":430,"height":11}},{"id":"fbe1cd14-2681-4b7d-9552-e8901575b513","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":90,"box":{"x":102,"y":596,"width":807,"height":12}},{"id":"530b9481-8346-47f4-a3e2-a6a8d14d67cd","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":90,"box":{"x":68,"y":612,"width":838,"height":11}},{"id":"10203a4b-bf65-4eb6-a19b-df01490dce59","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":90,"box":{"x":70,"y":627,"width":819,"height":11}},{"id":"f15c2023-59f8-4a34-9983-efeace754e9b","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":90,"box":{"x":70,"y":642,"width":835,"height":11}},{"id":"aac94d4e-0c19-4f97-9879-b302eec48657","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":90,"box":{"x":68,"y":657,"width":841,"height":11}},{"id":"d6e7a6aa-8f2b-466a-a80b-1bc1dcdecb9c","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":90,"box":{"x":70,"y":672,"width":351,"height":11}},{"id":"d653d09c-b97f-4a5b-8cd8-b72266364d36","block_type":"box","text":"China Investments Risk.","page_number":90,"box":{"x":102,"y":695,"width":171,"height":9}},{"id":"16e07d42-fd67-4f18-a8be-db7977cb40ef","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":90,"box":{"x":102,"y":717,"width":763,"height":11}},{"id":"5aa07d7a-b3d2-4202-9c48-cbc72a476589","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":90,"box":{"x":70,"y":732,"width":830,"height":12}},{"id":"36ec0116-202d-46c6-8e93-d28137754af1","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":90,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"b51365f9-2716-4e45-b9d8-a0955f45502e","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":90,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"d1f8bcfd-9a05-4f1f-96c5-34bb6fb10742","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":90,"box":{"x":69,"y":778,"width":713,"height":11}},{"id":"1c63fa3c-7b5b-41cd-b8c6-82cc2f070f41","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":90,"box":{"x":102,"y":801,"width":762,"height":11}},{"id":"c07b454f-bced-4c41-8de8-0744deb65e00","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":90,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"41052f9e-cc89-4ca7-a32c-a773ed829fa1","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":90,"box":{"x":69,"y":831,"width":820,"height":11}},{"id":"56971865-a726-47de-bcc2-e65fa2f3384b","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":90,"box":{"x":68,"y":846,"width":777,"height":11}},{"id":"021b00c8-782d-4c55-bf95-3d0f5034f47b","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":90,"box":{"x":69,"y":861,"width":809,"height":11}},{"id":"d31dc757-fbdf-45b9-b859-9ffe4d61b767","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":90,"box":{"x":69,"y":876,"width":805,"height":11}},{"id":"5300a29c-4a9a-4640-8cfa-f4fdc9a0ecbd","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":90,"box":{"x":70,"y":891,"width":770,"height":12}},{"id":"506ad764-40f4-4467-9358-32e64c26949b","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":90,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"550d0f8a-ea42-49e7-a99c-50d6158c2c4a","block_type":"box","text":"II-43","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca7406e2-3e53-429f-b995-2ef53a827d38","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7c65c7b4-00ec-412b-919f-f8d3f005ad5f","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":91,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"1b6502e0-a973-4d66-ab5e-f18e0785060d","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":91,"box":{"x":68,"y":60,"width":812,"height":11}},{"id":"6784c7a4-6f7a-4c0e-8f36-69dab21c795d","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":91,"box":{"x":69,"y":75,"width":818,"height":11}},{"id":"480308d0-b22a-4963-bf01-cb603d80e8fe","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":91,"box":{"x":69,"y":90,"width":769,"height":11}},{"id":"c96dd142-848f-4f92-9f87-6384bafe1eab","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":91,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"2dce133a-fa8e-4f80-9bbf-cfee6cb852c7","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":91,"box":{"x":68,"y":120,"width":810,"height":12}},{"id":"48f921d6-c5a5-462b-891c-fd66690a8637","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":91,"box":{"x":70,"y":135,"width":813,"height":12}},{"id":"41bca087-a3bd-4719-ba37-293c58dfae59","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":91,"box":{"x":69,"y":150,"width":811,"height":12}},{"id":"b17bc7f7-ba83-4a0b-b54f-eafb250831d3","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":91,"box":{"x":69,"y":166,"width":804,"height":11}},{"id":"836880ad-9cc9-41e5-898b-c62c7a144242","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":91,"box":{"x":69,"y":181,"width":829,"height":11}},{"id":"801a33e8-bd9e-42e2-b12f-c198085076e1","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":91,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"12dec285-68d3-4194-8e4b-b13ab9b4c984","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":91,"box":{"x":69,"y":211,"width":819,"height":11}},{"id":"36c209dd-07b5-4117-a774-359d159fb379","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":91,"box":{"x":69,"y":226,"width":776,"height":11}},{"id":"c5c40f31-657e-4741-9036-b8a04132a2ed","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":91,"box":{"x":101,"y":249,"width":792,"height":11}},{"id":"705f5e2c-cdf6-4901-a8d1-38471523ba03","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":91,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"7a51b2dd-05cc-47e7-b829-02013f30827a","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":91,"box":{"x":68,"y":279,"width":835,"height":11}},{"id":"590f6907-73a1-42be-ba63-362a0216da63","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":91,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"3b204b84-7ec3-492c-9cca-a49020d34c59","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":91,"box":{"x":70,"y":309,"width":763,"height":11}},{"id":"a72536bf-9b27-40ee-87db-09fa5c1dba6c","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policy making and","page_number":91,"box":{"x":69,"y":324,"width":834,"height":12}},{"id":"0a8fc258-6f3a-4794-913e-a73661101d04","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":91,"box":{"x":70,"y":339,"width":813,"height":12}},{"id":"73cee59d-2f58-49c8-afbf-a433db8d740b","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":91,"box":{"x":68,"y":355,"width":653,"height":11}},{"id":"917ce9ef-3d36-45b0-b8b6-f61bf0a746f2","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":91,"box":{"x":101,"y":377,"width":783,"height":12}},{"id":"4190673d-9e8c-4ca2-9086-4ec6cb8ee6a4","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":91,"box":{"x":69,"y":392,"width":805,"height":12}},{"id":"3d7e8767-1132-44b4-8a5b-ada3cca891b6","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":91,"box":{"x":69,"y":407,"width":827,"height":12}},{"id":"d3127ec1-c64f-4432-b37f-08fb77dcd0a2","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":91,"box":{"x":70,"y":423,"width":821,"height":11}},{"id":"6d8479f7-57cc-422c-b26d-22952064845d","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":91,"box":{"x":69,"y":438,"width":683,"height":11}},{"id":"9ee5e9f8-3919-4cc3-b1e5-d4c855708370","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":91,"box":{"x":102,"y":460,"width":797,"height":12}},{"id":"fee6c25f-ce3a-437a-85bb-be3faec938da","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":91,"box":{"x":69,"y":475,"width":779,"height":12}},{"id":"99626c39-3e2b-4714-a491-5c7801ab1881","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":91,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"24f19ca3-56bc-4bf9-893a-c94d83d21fe9","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":91,"box":{"x":70,"y":506,"width":836,"height":11}},{"id":"0b5202f9-921f-4a82-80a0-8bdb75d21d56","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":91,"box":{"x":69,"y":521,"width":778,"height":11}},{"id":"143c26bf-fa8e-4abd-b87c-980ea1ffe94a","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":91,"box":{"x":70,"y":536,"width":803,"height":11}},{"id":"a5455699-8f1e-4ae6-b147-af2dd0424a8e","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":91,"box":{"x":68,"y":551,"width":816,"height":11}},{"id":"0d8ac4f1-02f9-4658-8aaf-21e31479131a","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":91,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"dc185d1d-fa17-488a-a106-ebd600c58098","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":91,"box":{"x":69,"y":581,"width":798,"height":11}},{"id":"8b84a091-b103-45de-818e-6b3f756d778d","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":91,"box":{"x":68,"y":596,"width":826,"height":12}},{"id":"9268517b-c384-4f97-a171-9c6e522d6d4b","block_type":"box","text":"sub-custodian.","page_number":91,"box":{"x":69,"y":612,"width":102,"height":9}},{"id":"a6f04626-d10c-43ff-8fa6-a9f1df564cc0","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":91,"box":{"x":101,"y":634,"width":801,"height":12}},{"id":"8dbfb851-574c-429f-b396-5e9c5c6fd4d7","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":91,"box":{"x":69,"y":649,"width":829,"height":12}},{"id":"57361c72-08ec-4d68-8985-2ac377749461","block_type":"box","text":"on investor protection considerations.","page_number":91,"box":{"x":69,"y":665,"width":268,"height":10}},{"id":"49b7b130-27e5-4d2a-8ab1-f970e654a31f","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":91,"box":{"x":101,"y":687,"width":806,"height":11}},{"id":"e2242934-39e1-4124-bf8a-751b807a07ae","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":91,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"42567e93-1930-4945-9e31-4a0b4fb37ab3","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":91,"box":{"x":68,"y":717,"width":810,"height":12}},{"id":"521123de-188f-40b2-84a7-335120d6eace","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":91,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"1cc999c6-8f35-4a4c-a1b1-3a9ea8c21b5c","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":91,"box":{"x":68,"y":748,"width":774,"height":11}},{"id":"f0cdebdb-3849-4fb9-85fc-f8012baad8e0","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":91,"box":{"x":69,"y":763,"width":760,"height":11}},{"id":"70c450e1-11b3-4dda-8221-e88abf7d61c8","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":91,"box":{"x":69,"y":778,"width":788,"height":11}},{"id":"bb65c704-a8d8-44c6-b740-b694bf247665","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":91,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"33a6be6f-4667-47e1-9457-9b5331359bf1","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":91,"box":{"x":70,"y":808,"width":821,"height":11}},{"id":"0de08c5c-38c3-4a12-9e06-170d7050130c","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":91,"box":{"x":70,"y":823,"width":820,"height":11}},{"id":"551eba39-f77d-4e70-96dc-97349eeca879","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":91,"box":{"x":69,"y":838,"width":805,"height":12}},{"id":"3e313fe9-3154-4996-afec-040d75224541","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":91,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"76b86b30-678d-4e1e-b58d-7643d92f3d3d","block_type":"box","text":"accounting firm.","page_number":91,"box":{"x":69,"y":869,"width":112,"height":11}},{"id":"76a60af3-de31-4ead-bc91-47b3462d1bd5","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":91,"box":{"x":101,"y":891,"width":780,"height":12}},{"id":"b2c15569-6eb7-44eb-a796-20666aeb3aae","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":91,"box":{"x":70,"y":906,"width":815,"height":12}},{"id":"fa6b0b64-fe14-440d-b31d-a87c1e72ae1a","block_type":"box","text":"II-44","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5b247614-8c13-4819-be70-9e8ac59bff2c","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4444f5b-d6b5-4f6a-bdaf-74d368e3d869","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":92,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"36505bc1-d6fe-4d48-b346-62666ab6afd3","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":92,"box":{"x":69,"y":60,"width":787,"height":11}},{"id":"ef706a98-4542-44ae-844b-9dc6bab303ed","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":92,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"3da9c377-9077-4bc9-a5c6-5cceac8a3ee5","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":92,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"2549643f-f76e-49f8-a294-92fded0608f1","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":92,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"a68a21cd-35a9-43a2-b550-b1885556c111","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":92,"box":{"x":70,"y":120,"width":812,"height":11}},{"id":"890b31ad-adc6-462f-83ed-cb6207278f4e","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":92,"box":{"x":69,"y":135,"width":808,"height":11}},{"id":"94707491-4190-4dc5-a14e-0598071c462e","block_type":"box","text":"RMB (“CNH”).","page_number":92,"box":{"x":70,"y":151,"width":97,"height":10}},{"id":"b91afe2e-c43a-4e42-904f-a3788f8a4614","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":92,"box":{"x":102,"y":173,"width":802,"height":11}},{"id":"ce3131a2-c790-44ba-9bd2-3c16f7e66dad","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":92,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"795b9b29-7b81-4f1e-83e5-497861ed48a6","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":92,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"fc4cd3bc-e700-47c4-8f02-e4b3392e946e","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":92,"box":{"x":70,"y":218,"width":775,"height":12}},{"id":"4f950cfc-ca8c-47c7-a1a5-d9c418d77ce8","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":92,"box":{"x":69,"y":234,"width":809,"height":11}},{"id":"d66400c4-6cd9-4b36-b415-c4dba027ba78","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":92,"box":{"x":69,"y":249,"width":803,"height":11}},{"id":"2b7a7daf-7e9a-4e98-942c-b130f05ae7aa","block_type":"box","text":"represent equity ownership in the operating company.","page_number":92,"box":{"x":69,"y":264,"width":380,"height":11}},{"id":"cb9962c2-ad26-4644-a246-b7a8cedc7d9a","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":92,"box":{"x":101,"y":286,"width":801,"height":12}},{"id":"139f44dc-96c7-4e5a-8724-f3145b3ddbd8","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":92,"box":{"x":68,"y":302,"width":833,"height":11}},{"id":"c0f4a6cb-9cb6-4e6a-8b6a-29da7096d465","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":92,"box":{"x":69,"y":317,"width":825,"height":11}},{"id":"a314a899-47fe-4963-b240-dfaed9c7d2a2","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":92,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"fe2d5aff-ca21-4ac7-aad7-8f0dfb807c30","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":92,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"1efef09c-0726-4ec4-8dcb-df6b787741fa","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":92,"box":{"x":69,"y":362,"width":770,"height":11}},{"id":"8a3274b4-7f62-4986-8758-8056057c4cae","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":92,"box":{"x":69,"y":377,"width":829,"height":12}},{"id":"901351c2-c915-4f48-9638-a0c19d51c962","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":92,"box":{"x":69,"y":392,"width":815,"height":12}},{"id":"6174daec-b607-4cdb-8fcd-645e8dd5326c","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":92,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"2ad6fcca-253b-47e8-9dc6-4c9899cf70c6","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":92,"box":{"x":69,"y":423,"width":802,"height":11}},{"id":"3f578512-f58c-40a4-8596-a1445c37a499","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":92,"box":{"x":70,"y":438,"width":828,"height":11}},{"id":"8116d35a-8649-4902-bfb5-7a7bb5a05f01","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":92,"box":{"x":69,"y":453,"width":833,"height":11}},{"id":"bdcb946e-a0ea-4179-9acb-b46bd533388c","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":92,"box":{"x":69,"y":468,"width":819,"height":11}},{"id":"0050e3dc-0b8e-49fa-aadb-5c3f1b00a1df","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":92,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"848cba1b-4620-44e1-8da7-c83572ee749e","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":92,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"8140cb38-0f35-47ff-95e0-e3b07d0bc2d9","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":92,"box":{"x":69,"y":513,"width":837,"height":12}},{"id":"89db8764-8bca-44ca-9fae-ad0f588de817","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":92,"box":{"x":68,"y":528,"width":792,"height":12}},{"id":"033076d5-7814-4986-9c2c-118772b1bc75","block_type":"box","text":"losses to a Fund.","page_number":92,"box":{"x":70,"y":544,"width":120,"height":9}},{"id":"05c6e7de-b8e4-450f-b235-50dcc025e596","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":92,"box":{"x":101,"y":566,"width":760,"height":11}},{"id":"09e0d231-af7b-4c1e-a39c-feeb89324b82","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":92,"box":{"x":68,"y":581,"width":815,"height":12}},{"id":"f41ddcd3-9bbf-4e55-91d7-ffca0722a096","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":92,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"c0e6ee81-d34b-4342-8428-3434c4dd6a4a","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":92,"box":{"x":69,"y":612,"width":830,"height":11}},{"id":"e8573747-41a4-46ec-b4d9-d69f5abbdb76","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":92,"box":{"x":69,"y":627,"width":815,"height":11}},{"id":"417e91ae-c187-4b25-b934-2c6c23077005","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":92,"box":{"x":69,"y":642,"width":832,"height":11}},{"id":"25104afd-d6c1-4245-8cf4-8ce172cb839a","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":92,"box":{"x":69,"y":657,"width":765,"height":11}},{"id":"3248adc2-d5b2-4703-9e22-36e76c876578","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":92,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"0d584bf1-c3bc-4d83-ae93-172ee9c56b28","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":92,"box":{"x":70,"y":687,"width":816,"height":11}},{"id":"5402025b-76f9-4e95-881d-90362de199b1","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":92,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"43ac2203-37df-48e3-a44b-fabb0fd3659c","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":92,"box":{"x":69,"y":717,"width":825,"height":12}},{"id":"900f8c2e-59e1-488d-83a7-13ae3f968cc6","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":92,"box":{"x":69,"y":732,"width":798,"height":11}},{"id":"3d342118-fed8-41b4-86eb-ffc8e6f3e71e","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":92,"box":{"x":68,"y":748,"width":805,"height":11}},{"id":"5af02171-358b-4f17-a6ec-729dd0f54ad6","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":92,"box":{"x":69,"y":763,"width":817,"height":11}},{"id":"3ca1261f-e48f-42ad-8671-93c864225ef5","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":92,"box":{"x":68,"y":778,"width":825,"height":11}},{"id":"9fb43783-c34e-42a4-be7a-495df042b031","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":92,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"9cef503d-9f77-4e1e-a621-5baf07922a40","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":92,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"2d02d44c-288e-4313-b611-91747fe3ff8e","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":92,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"ba04f0bc-45a0-41f7-90e3-758900367538","block_type":"box","text":"such companies.","page_number":92,"box":{"x":69,"y":839,"width":119,"height":10}},{"id":"670426bf-53fe-4318-b8b9-73e00cc8e97f","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":92,"box":{"x":101,"y":861,"width":792,"height":11}},{"id":"37c37233-4552-4fea-8be4-978326e8bcb9","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":92,"box":{"x":69,"y":876,"width":840,"height":11}},{"id":"69bd8821-fc7f-4104-8609-73a1dcb5aef0","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":92,"box":{"x":68,"y":891,"width":815,"height":11}},{"id":"c72a5a01-fb72-4c79-9a11-4486eba86046","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":92,"box":{"x":69,"y":906,"width":823,"height":12}},{"id":"a99d1454-023a-4b0a-9fc3-946e10ce5c5c","block_type":"box","text":"II-45","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f23e9655-7fdb-4c4b-b6c2-2d19c9f7d684","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e40aed2-8ab4-4422-8887-5cb43bbc105f","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":93,"box":{"x":69,"y":45,"width":812,"height":11}},{"id":"4549c193-b2e5-4f4a-a041-c7b2bdb3b20b","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":93,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"49ad33f7-791c-4489-b340-48e24cfca889","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":93,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"99e2b397-46ac-4240-a19c-770a5cb25ed5","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":93,"box":{"x":68,"y":90,"width":773,"height":11}},{"id":"00d5e568-a47d-46c4-ac9a-c7b7a37d5781","block_type":"box","text":"standards.","page_number":93,"box":{"x":69,"y":105,"width":74,"height":9}},{"id":"7ff59db1-a06b-4da3-ba8d-5d33cb084fca","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":93,"box":{"x":102,"y":128,"width":794,"height":11}},{"id":"2dfd34c9-5e6d-4050-a396-675aceb6b936","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":93,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"cb69cbe3-99f5-402f-bf93-42592956df20","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":93,"box":{"x":69,"y":158,"width":803,"height":11}},{"id":"ecce4ea4-7483-40b7-b7ae-3d22ad87d929","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":93,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"4a3719b8-00f9-47a2-9e48-cbf3ecc0959e","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":93,"box":{"x":69,"y":188,"width":548,"height":11}},{"id":"abab3802-1caa-4b74-93ec-2578a8cfd782","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":93,"box":{"x":102,"y":211,"width":288,"height":11}},{"id":"4e1d8383-f79f-4909-b49c-b1c7ecb82d1d","block_type":"box","text":"General.","page_number":93,"box":{"x":102,"y":234,"width":58,"height":9}},{"id":"b8c6e4f3-bde1-4ddc-8c57-8ac6e1abf17f","block_type":"box","text":"China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":93,"box":{"x":166,"y":234,"width":696,"height":11}},{"id":"894bc650-6436-469a-88be-1f36ae7ea575","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":93,"box":{"x":69,"y":249,"width":815,"height":11}},{"id":"823b64e4-3c7b-49eb-8d33-baf8ea93e82a","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":93,"box":{"x":69,"y":264,"width":815,"height":11}},{"id":"33e9e4df-27a1-46c0-afc4-306812d974bf","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":93,"box":{"x":68,"y":279,"width":833,"height":11}},{"id":"29f2587f-016e-4a18-9e69-e26974d4b0bb","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":93,"box":{"x":69,"y":294,"width":744,"height":11}},{"id":"e649e7ba-2744-4b4e-83e2-b88dd1ff1589","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":93,"box":{"x":102,"y":317,"width":745,"height":11}},{"id":"eb46acc3-b987-4ecc-8c1f-72ecefbe4601","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":93,"box":{"x":69,"y":332,"width":807,"height":11}},{"id":"5118ed96-f891-4597-a3a9-ae20b827843f","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":93,"box":{"x":70,"y":347,"width":834,"height":11}},{"id":"6e16f1ce-ac0d-4c8c-97ac-43208cdd01fd","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":93,"box":{"x":69,"y":362,"width":812,"height":11}},{"id":"342e57fe-cf9a-4d43-bf11-d9817c403aa1","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":93,"box":{"x":70,"y":377,"width":819,"height":12}},{"id":"fe945665-5c89-4e6c-b5d9-0665078e176c","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":93,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"1bfce0ae-9c11-49e5-83a2-241b8bc27b1e","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":93,"box":{"x":69,"y":408,"width":818,"height":11}},{"id":"b49eca3b-258d-42d9-894b-12614668d707","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":93,"box":{"x":68,"y":423,"width":824,"height":11}},{"id":"675b36b1-7959-4cac-b4c0-2919fd56512e","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":93,"box":{"x":68,"y":438,"width":827,"height":11}},{"id":"565b5f5d-5c51-4437-be4a-3c431ac743b0","block_type":"box","text":"company established by SEHK.","page_number":93,"box":{"x":69,"y":453,"width":219,"height":11}},{"id":"482580de-0848-40c3-8fb0-f18a9b13eb31","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":93,"box":{"x":101,"y":476,"width":794,"height":11}},{"id":"d9d5e1cc-733b-40bf-8afc-340dd7435fe9","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":93,"box":{"x":68,"y":491,"width":839,"height":11}},{"id":"9f122c5b-a1ec-454a-b303-e9fbcfc81dc5","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":93,"box":{"x":69,"y":506,"width":779,"height":11}},{"id":"33f0b1c0-8644-4e85-b462-664dfdb77b53","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":93,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"b3bbef38-1e43-44b7-b7d9-e6c654395a2a","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":93,"box":{"x":70,"y":536,"width":827,"height":11}},{"id":"4cb47961-eba9-48e0-9293-e48ef8bdadb6","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":93,"box":{"x":70,"y":551,"width":837,"height":11}},{"id":"8b626e65-5ee6-4c39-a709-aaadb905cbdf","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":93,"box":{"x":69,"y":566,"width":802,"height":11}},{"id":"5eb6a048-c412-43f1-8dbd-300a8d6bbc6a","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":93,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"93dfc99c-f3bb-4ad7-9823-904defed2a1e","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":93,"box":{"x":68,"y":597,"width":821,"height":11}},{"id":"b30dcf28-cfe2-4192-afe1-3538b575eef7","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":93,"box":{"x":68,"y":612,"width":829,"height":11}},{"id":"c4d06e22-ffc4-402a-bb02-bd4d2e166cfc","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":93,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"2b291f21-f650-4638-8d1e-657ae69735f0","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":93,"box":{"x":69,"y":642,"width":820,"height":11}},{"id":"d7703f82-15c1-4400-8223-c4c2033575cf","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":93,"box":{"x":69,"y":657,"width":820,"height":11}},{"id":"90bb6169-06a5-4231-8391-42193cf1e94c","block_type":"box","text":"(“SZSE Securities”) of its participants (i.e., stock brokers) to ensure that this requirement is satisfied. While shares","page_number":93,"box":{"x":69,"y":672,"width":827,"height":11}},{"id":"77446901-fcf1-4875-a790-a9592f158039","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":93,"box":{"x":69,"y":687,"width":815,"height":11}},{"id":"3466c246-c34b-4a12-8850-d888957244fe","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":93,"box":{"x":69,"y":702,"width":810,"height":12}},{"id":"0c623a32-ba36-4ced-9faa-855254dbfb2b","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":93,"box":{"x":69,"y":717,"width":834,"height":12}},{"id":"045ac06c-de65-4fb6-8822-574d5e45f481","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":93,"box":{"x":69,"y":732,"width":799,"height":12}},{"id":"bb0869fd-42b6-4ace-87d8-d7b1beecfd6d","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":93,"box":{"x":69,"y":748,"width":797,"height":11}},{"id":"86a0de83-de8e-43c7-8d3c-4f2512c48c8c","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":93,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"62bc6296-46b7-48a6-8cfe-9dd0681107c7","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":93,"box":{"x":68,"y":778,"width":820,"height":11}},{"id":"a66bde18-e7fc-489b-8b5a-4e087d7e9d81","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":93,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"05462418-5387-4b46-8036-579c89e9d9f4","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":93,"box":{"x":69,"y":808,"width":811,"height":11}},{"id":"7a474a13-8db4-4515-a477-1bcceb972acc","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":93,"box":{"x":68,"y":823,"width":815,"height":12}},{"id":"649020f0-43d8-476b-b50b-710c95254077","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":93,"box":{"x":69,"y":838,"width":824,"height":11}},{"id":"9d71c62d-21d1-44f5-81e8-6ac4ae2ce235","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":93,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"333a2a4d-faa9-413c-ae53-ccc1351e8e91","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":93,"box":{"x":70,"y":869,"width":582,"height":11}},{"id":"21b323e9-4c53-4398-b7ba-c484890dd485","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":93,"box":{"x":102,"y":891,"width":802,"height":12}},{"id":"abbfff57-f5ef-4a85-a4ac-172779b12709","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":93,"box":{"x":69,"y":906,"width":784,"height":12}},{"id":"24d54ef1-f080-4695-beef-86a7bde56722","block_type":"box","text":"II-46","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ca0d0ea-2f4f-451b-bceb-50b320c0ec73","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0814228b-0e47-48ce-bbac-ac9dd5766e5d","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":94,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"f7d11833-9830-412b-a4d0-aba534982805","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":94,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"beccb390-52c3-4025-bad0-bc3f238de8df","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":94,"box":{"x":69,"y":75,"width":802,"height":11}},{"id":"4fc8a22b-8e9a-43c4-b819-6c4759771e92","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":94,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"3131376a-d88e-45f7-b523-3946d1bfcd51","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":94,"box":{"x":70,"y":105,"width":807,"height":11}},{"id":"3653eea3-2ff0-4bc5-8cdb-39d8969f46e0","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":94,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"32e37b2a-7ecd-4e7b-b066-76d89a724cb8","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":94,"box":{"x":70,"y":135,"width":774,"height":12}},{"id":"d24fca7b-57f1-4dc6-b5b4-cb50bb408513","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":94,"box":{"x":70,"y":151,"width":816,"height":11}},{"id":"f0c2070b-2c40-4e9e-845d-57033edddccc","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":94,"box":{"x":69,"y":166,"width":808,"height":11}},{"id":"6789fae2-a077-4d92-a3c0-601b958ec51e","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":94,"box":{"x":68,"y":181,"width":779,"height":11}},{"id":"d2c486dd-5564-42f9-9fdd-037336f3d354","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":94,"box":{"x":69,"y":196,"width":788,"height":11}},{"id":"4f256071-1dc5-4905-942c-e163b36fddb0","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":94,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"b089eba7-f4f2-4dc8-8e36-12f1abdc2692","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":94,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"b17fb48e-ae99-4ba6-ae86-2d685da90f15","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":94,"box":{"x":70,"y":241,"width":783,"height":11}},{"id":"0825a5bf-447f-47df-a348-72f4ecc98a52","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":94,"box":{"x":70,"y":256,"width":826,"height":12}},{"id":"6ca3411f-f67b-4301-90c1-9d30ec9cecfd","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":94,"box":{"x":69,"y":271,"width":752,"height":12}},{"id":"f1526830-3f61-42b7-8f01-bf3fcf94b92b","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":94,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"3d62d8b4-eb15-45e4-ac80-10513eea6607","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":94,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"1ed4ec93-5906-4c82-95ad-39d2ac9e6852","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":94,"box":{"x":68,"y":324,"width":769,"height":12}},{"id":"c37dd821-ba95-473f-809a-d5781b13caf8","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":94,"box":{"x":70,"y":340,"width":809,"height":10}},{"id":"e67c9981-beb9-4424-8aba-f4119da90538","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":94,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"cdad1b3c-3c69-4a56-90b9-6e744f7b4738","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":94,"box":{"x":68,"y":370,"width":822,"height":11}},{"id":"33b2e77b-b676-4a21-ab6e-268020955962","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":94,"box":{"x":69,"y":385,"width":829,"height":11}},{"id":"5f94c52f-0598-4076-a639-dc1e3134d4ae","block_type":"box","text":"PRC.","page_number":94,"box":{"x":69,"y":400,"width":32,"height":9}},{"id":"e72b2241-792f-49f4-af17-260dbf0c4881","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":94,"box":{"x":102,"y":423,"width":796,"height":11}},{"id":"6039203e-818b-48b8-a8ec-ba4c2b09a0d2","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":94,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"9a4352cf-4ee1-4d53-847e-181513bac77c","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":94,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"fba3c912-3f19-496d-8eca-ca13e9db6afe","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":94,"box":{"x":68,"y":468,"width":818,"height":11}},{"id":"122df5ad-0dc0-454c-aacd-94512c7cd778","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":94,"box":{"x":70,"y":483,"width":813,"height":11}},{"id":"ae062ea8-d734-4a59-9407-f1249de5408d","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":94,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"f335146e-0875-47f9-8299-99d02a356ef6","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":94,"box":{"x":68,"y":513,"width":695,"height":12}},{"id":"27e62e80-2ffb-463d-afb5-8ae8ee460c11","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":94,"box":{"x":101,"y":536,"width":772,"height":11}},{"id":"4fcca997-d869-4ddf-87f6-acff0a0b1990","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":94,"box":{"x":69,"y":551,"width":810,"height":11}},{"id":"f1a381ed-1c7b-440c-b56d-8838f6ce79ba","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":94,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"c38fb178-8f9d-4a75-b784-47563ba7c5e4","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":94,"box":{"x":70,"y":581,"width":786,"height":12}},{"id":"553479de-9911-4c5e-aa2e-8a53d3730df1","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":94,"box":{"x":69,"y":596,"width":821,"height":12}},{"id":"c31fed05-4cb0-4bb9-96f3-73faa8971d97","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":94,"box":{"x":69,"y":612,"width":819,"height":11}},{"id":"c803665b-0e52-4d1b-b49d-8ddf7b1b35b5","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":94,"box":{"x":69,"y":627,"width":823,"height":11}},{"id":"950c97ac-ce56-4c8b-8073-5b17c488dd53","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":94,"box":{"x":68,"y":642,"width":814,"height":11}},{"id":"fdc0b865-ad50-4834-8166-857eed22ba52","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":94,"box":{"x":69,"y":657,"width":793,"height":11}},{"id":"af23c639-c631-4152-a98a-a3767d06b881","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":94,"box":{"x":69,"y":672,"width":815,"height":11}},{"id":"6384055e-afee-4f80-b333-3e522f4d60c8","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":94,"box":{"x":69,"y":687,"width":828,"height":11}},{"id":"bf65cbe5-9236-4958-9171-c15acd742196","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":94,"box":{"x":69,"y":702,"width":831,"height":12}},{"id":"496f2467-52ee-4348-b87c-8ad932338ffa","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":94,"box":{"x":68,"y":717,"width":596,"height":12}},{"id":"f76a3441-cc2c-4647-9dad-9be5f56addb1","block_type":"box","text":"Suspension Risk.","page_number":94,"box":{"x":102,"y":740,"width":122,"height":11}},{"id":"fb7fad14-6614-4802-9e8b-ef62ab0e0339","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":94,"box":{"x":231,"y":740,"width":675,"height":11}},{"id":"9b0756c1-4af7-4f01-afc7-7e7e2048d539","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":94,"box":{"x":68,"y":755,"width":829,"height":11}},{"id":"617bfb38-c56c-4b5c-99f4-361afc6d69e3","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":94,"box":{"x":68,"y":770,"width":823,"height":12}},{"id":"80205800-8852-42d5-b2a2-167713e90f94","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":94,"box":{"x":68,"y":785,"width":831,"height":12}},{"id":"695935ff-4cff-4264-b8ac-2e6d7250da77","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":94,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"8f3ebd93-852c-4c95-913c-bbb99aefaa7c","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":94,"box":{"x":68,"y":816,"width":791,"height":11}},{"id":"b3388818-c0f4-49fc-b841-89da14f5f583","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":94,"box":{"x":70,"y":831,"width":837,"height":11}},{"id":"89e8b899-6621-439b-848b-378f46b47946","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":94,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"22f46dcd-899f-4ec6-ac86-bb1697da2bdb","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":94,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"e4c81f99-2d07-4660-8874-b29765194d1c","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":94,"box":{"x":69,"y":876,"width":829,"height":11}},{"id":"14a2e688-5fdd-4107-bcd3-b8c3a279000f","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":94,"box":{"x":69,"y":891,"width":778,"height":12}},{"id":"3fdda405-8205-4379-a128-7c874d0b6bba","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":94,"box":{"x":69,"y":906,"width":815,"height":12}},{"id":"a0572ad8-4fd1-494c-8be1-8d583c3fa8e2","block_type":"box","text":"II-47","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f533222-6861-45f5-8fc3-66107f54f4cf","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad868e81-d9c0-40fc-a5cb-4869c0661ace","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":95,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"3eb83127-01e9-4b9c-a0bb-b4dc17ba90f3","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":95,"box":{"x":69,"y":60,"width":563,"height":11}},{"id":"c145462a-b21f-4107-a1c8-cda8f31f35a4","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":95,"box":{"x":102,"y":82,"width":542,"height":12}},{"id":"b8bedcf6-8809-4ed8-ba8b-f29369466b3b","block_type":"box","text":"A Fund may invest directly in the","page_number":95,"box":{"x":650,"y":83,"width":230,"height":11}},{"id":"8d5df9eb-8751-41ec-8b7d-0c412cfc901d","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":95,"box":{"x":69,"y":98,"width":791,"height":11}},{"id":"85890cd0-5839-485c-80af-80623613b78b","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":95,"box":{"x":69,"y":113,"width":790,"height":11}},{"id":"e2e9e533-d41d-4a0c-b6c9-74cfab433995","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":95,"box":{"x":69,"y":128,"width":803,"height":11}},{"id":"974a2a60-33e9-4751-8b48-8e9e79cb88de","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":95,"box":{"x":70,"y":143,"width":832,"height":11}},{"id":"59964b99-43a6-4187-8549-5a3d53d6e71a","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":95,"box":{"x":70,"y":158,"width":821,"height":11}},{"id":"366c069f-51b8-4e96-8a5e-d123b872a22f","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":95,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"dad693de-ab14-44da-a2be-7fec2d9713a0","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":95,"box":{"x":70,"y":188,"width":825,"height":12}},{"id":"98634f76-00bb-4051-95ea-2d91b91cb2ea","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":95,"box":{"x":69,"y":203,"width":809,"height":12}},{"id":"e390f3cf-fc66-4261-822b-c95d45d522e0","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":95,"box":{"x":68,"y":218,"width":786,"height":11}},{"id":"0af0e272-2eee-4a41-9353-1b1bc4e1d681","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":95,"box":{"x":69,"y":234,"width":830,"height":11}},{"id":"d1341419-43ab-44a1-935a-bdfc1ca3e09f","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":95,"box":{"x":68,"y":249,"width":788,"height":11}},{"id":"9da2c391-32f8-4d48-b8be-6f986e62e106","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":95,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"9d1f2d9c-d0dc-47ce-a360-cccfc8788f9e","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":95,"box":{"x":69,"y":279,"width":570,"height":11}},{"id":"b8b06993-9e7f-406d-af46-acba27443295","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":95,"box":{"x":101,"y":302,"width":773,"height":11}},{"id":"1db6ed28-b298-427d-bc6d-edf2e0805302","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":95,"box":{"x":69,"y":317,"width":823,"height":11}},{"id":"067977f3-8653-45f0-bff7-e0a7da7ec188","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":95,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"2db6acd9-8939-4155-954d-f2b0a46f85de","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":95,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"3a3758a0-32f1-46be-af4d-f85193ec290b","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":95,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"31143b18-3ed2-40da-b570-67a8349bc741","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":95,"box":{"x":69,"y":377,"width":787,"height":11}},{"id":"9bef0536-c2e9-4e2e-aa24-a986a8a93d5c","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":95,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"3e65a301-a09c-43d3-acce-78081947e98c","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":95,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"0559460e-40ec-4225-9f4c-9badca20417e","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":95,"box":{"x":68,"y":423,"width":500,"height":11}},{"id":"7218ce57-5e12-4326-8515-54a1e9ada75f","block_type":"box","text":"i.e.","page_number":95,"box":{"x":570,"y":423,"width":20,"height":9}},{"id":"478eafba-0987-4c4c-abe0-5dec20ef1f2a","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":95,"box":{"x":593,"y":423,"width":267,"height":11}},{"id":"164cfaf7-c22c-4ec4-832d-a3fe5b3c17bc","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":95,"box":{"x":69,"y":438,"width":832,"height":11}},{"id":"d1b5f4cd-1f90-4634-9555-3e7f7bf1849e","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":95,"box":{"x":69,"y":453,"width":819,"height":11}},{"id":"c7aae87e-b6a6-4144-adbc-93941a244dbd","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":95,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"0a55f705-e518-4eaa-b6df-11fc8a154061","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":95,"box":{"x":68,"y":483,"width":822,"height":11}},{"id":"22fc91d3-bf0f-43be-a4b4-faf964e17f5c","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":95,"box":{"x":69,"y":498,"width":793,"height":11}},{"id":"39bdb91f-48c2-489a-9b25-383c77d5e1b2","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":95,"box":{"x":68,"y":513,"width":802,"height":12}},{"id":"075a4c98-e62f-49f5-8f96-4ca46ee8cc51","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":95,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"b1bdad8b-6195-4bc9-86e6-9d9cba1d8aea","block_type":"box","text":"parties.","page_number":95,"box":{"x":70,"y":544,"width":52,"height":10}},{"id":"874f480f-4e37-41c2-a895-3d2976daf166","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":95,"box":{"x":101,"y":566,"width":799,"height":11}},{"id":"2c818e8b-d115-4847-9ae3-8f98fe273cef","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":95,"box":{"x":70,"y":581,"width":785,"height":12}},{"id":"92564612-d9fd-4993-9c1f-0fe334982578","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":95,"box":{"x":69,"y":596,"width":776,"height":12}},{"id":"25496a0d-7c6f-4660-a449-d63f9fcc8f19","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":95,"box":{"x":70,"y":612,"width":830,"height":11}},{"id":"c90ba316-fab7-413a-a329-e1fb851a6f16","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":95,"box":{"x":69,"y":627,"width":412,"height":9}},{"id":"bce90813-95ce-472d-b657-9199c0e0bffb","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":95,"box":{"x":102,"y":649,"width":793,"height":12}},{"id":"5fc82d84-f415-4bf4-850f-33eb20c5106d","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":95,"box":{"x":70,"y":664,"width":832,"height":12}},{"id":"8d81dde7-524d-484a-b2c9-73af0b3dd307","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":95,"box":{"x":69,"y":680,"width":821,"height":11}},{"id":"d2881dce-ab62-4a84-8e61-85f756a682a0","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":95,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"e3a7faab-990c-4fee-8395-2143a9e919ae","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":95,"box":{"x":68,"y":710,"width":798,"height":11}},{"id":"105808a8-4207-4259-a906-39b1a50e7ab9","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":95,"box":{"x":70,"y":725,"width":556,"height":11}},{"id":"9824e9a4-76f4-4819-b538-8b292d9d8812","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":95,"box":{"x":102,"y":748,"width":762,"height":11}},{"id":"078a9ce9-cf43-440c-88a0-d1f38bc3b9a0","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":95,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"2433cc71-7819-4254-8b3f-afda4dc1902d","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":95,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"00242af0-eb96-4dd4-9295-ff8cd31105e3","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":95,"box":{"x":69,"y":793,"width":820,"height":11}},{"id":"8b1dde42-0029-4a88-b75e-703ef4ccb108","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":95,"box":{"x":68,"y":808,"width":840,"height":11}},{"id":"bdbca967-0274-48d5-9c0f-7319d6170acd","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":95,"box":{"x":68,"y":823,"width":826,"height":11}},{"id":"f75264af-1fed-48d1-93f7-ba007ce9c764","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":95,"box":{"x":68,"y":838,"width":808,"height":12}},{"id":"59873155-799a-4bef-b526-988030e59f8c","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":95,"box":{"x":70,"y":853,"width":826,"height":12}},{"id":"df4194aa-d101-4da0-8ad6-ba1e3e3d56c9","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":95,"box":{"x":69,"y":869,"width":789,"height":11}},{"id":"61cd19e9-eec2-45e8-a330-259d138a5a4b","block_type":"box","text":"performance.","page_number":95,"box":{"x":70,"y":884,"width":93,"height":11}},{"id":"6698142a-fbd8-4c9d-b871-13e44d82bf34","block_type":"box","text":"II-48","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"34c0b4c4-e920-4916-8d12-ecb9a19d657f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba458e1c-a111-47ea-94dc-8956c660b066","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":96,"box":{"x":101,"y":45,"width":803,"height":11}},{"id":"b07877ed-7afc-4d72-a142-c69ea9155357","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":96,"box":{"x":68,"y":60,"width":776,"height":11}},{"id":"5505eee1-7524-405c-aa8b-90c229bd0910","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":96,"box":{"x":69,"y":75,"width":806,"height":11}},{"id":"65834b67-b146-4c30-be42-d6648254d2e8","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":96,"box":{"x":69,"y":90,"width":791,"height":11}},{"id":"e235add5-e151-4873-ab24-b66ca592d8f5","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":96,"box":{"x":69,"y":105,"width":827,"height":11}},{"id":"59a50bde-912f-40d9-ba29-a79e12aeadc0","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":96,"box":{"x":68,"y":120,"width":827,"height":12}},{"id":"0eed077d-f954-4c6a-833a-3a706023c05b","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":96,"box":{"x":102,"y":143,"width":755,"height":11}},{"id":"5aef3a93-0c83-40d4-9fd7-c70a051de55b","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":96,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"1f83d23c-fe19-4aad-ace2-22140c117ffb","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":96,"box":{"x":68,"y":173,"width":298,"height":11}},{"id":"f938df4d-2987-4978-b111-24fa12f810c5","block_type":"box","text":"Tax Risk - Withholding Income Tax Risk.","page_number":96,"box":{"x":103,"y":196,"width":276,"height":11}},{"id":"02d10c94-771a-4df1-91f6-bbd602d004ed","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":96,"box":{"x":101,"y":219,"width":758,"height":11}},{"id":"4e9b2b98-05ce-43e0-a838-ad9da8fc94f4","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":96,"box":{"x":70,"y":234,"width":828,"height":11}},{"id":"cecee58c-ea20-46fe-92ca-df5e3d1cd0c1","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":96,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"544f14ab-0ab4-4d12-82a7-c1ab6cadb37b","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":96,"box":{"x":69,"y":264,"width":425,"height":11}},{"id":"d5f0bf16-d5fd-4af3-8167-e9001cb2b989","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":96,"box":{"x":101,"y":287,"width":697,"height":11}},{"id":"de38680f-5c9d-49e3-8747-406b7cd71099","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":96,"box":{"x":102,"y":309,"width":803,"height":11}},{"id":"1ec85b51-8671-48ff-8639-6daff47114a1","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":96,"box":{"x":68,"y":324,"width":822,"height":12}},{"id":"e51c6ddc-671d-4275-8af1-25619901ee63","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":96,"box":{"x":69,"y":339,"width":794,"height":12}},{"id":"205fe953-4643-4c4c-84df-40a3510bc7d2","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":96,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"584ffe23-04d2-4bf8-a073-6dea80d145c2","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":96,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"2b6e8774-e721-481f-8c1d-82e3a3b38c70","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":96,"box":{"x":68,"y":385,"width":783,"height":11}},{"id":"22fd5d47-0f98-4a0a-9365-1264a5ed8cd0","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":96,"box":{"x":69,"y":400,"width":825,"height":11}},{"id":"8433a15f-b34d-4178-9d15-11cd613e4bd9","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":96,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"f4151b21-2770-4ac0-97bc-98534960acf3","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":96,"box":{"x":68,"y":430,"width":818,"height":11}},{"id":"ac408f0b-b39c-419e-ae79-a5f075f583da","block_type":"box","text":"without notice.","page_number":96,"box":{"x":68,"y":446,"width":103,"height":8}},{"id":"aebcc389-952d-4053-89d9-f312717b93a2","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":96,"box":{"x":102,"y":468,"width":759,"height":11}},{"id":"4ca8529f-84b9-4879-bfa4-8ab863f8757a","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":96,"box":{"x":70,"y":483,"width":827,"height":11}},{"id":"423226ed-718d-43fa-b33e-bc2a7d76719b","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":96,"box":{"x":68,"y":498,"width":798,"height":11}},{"id":"69aaf12d-4339-4d76-943a-ebf44f68b6fd","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":96,"box":{"x":70,"y":513,"width":798,"height":11}},{"id":"345933ca-0683-4304-a849-e7dd547f7b4d","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":96,"box":{"x":69,"y":528,"width":792,"height":12}},{"id":"1768bbe7-3793-4be9-a3b3-abc12080764e","block_type":"box","text":"December 31, 2027.","page_number":96,"box":{"x":70,"y":544,"width":147,"height":10}},{"id":"5a81d0ef-783f-4546-93f2-3acaa383f6ab","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":96,"box":{"x":103,"y":566,"width":225,"height":11}},{"id":"0ab50b60-59ca-4acd-9ebb-e302d62d7d8d","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":96,"box":{"x":333,"y":566,"width":569,"height":11}},{"id":"c1afecd7-c3c0-40e7-af06-ea7706d6aa39","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":96,"box":{"x":69,"y":581,"width":528,"height":12}},{"id":"7d71884e-c0c3-4431-b85a-23614c6c417f","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":96,"box":{"x":101,"y":604,"width":697,"height":11}},{"id":"b827d1f4-5610-48fa-b345-471fd5682ea6","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":96,"box":{"x":101,"y":627,"width":789,"height":11}},{"id":"7c34b5a3-5cb7-4ba8-b068-b6fe3b3e5b13","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":96,"box":{"x":69,"y":642,"width":565,"height":9}},{"id":"9db2876b-29fa-4308-8a24-663da3e9c9a6","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":96,"box":{"x":102,"y":664,"width":749,"height":12}},{"id":"018d55a3-66df-4af9-a8df-ba6bed527fdb","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":96,"box":{"x":70,"y":680,"width":791,"height":11}},{"id":"e09415da-6ea4-444b-91e1-e668a0702923","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":96,"box":{"x":69,"y":695,"width":840,"height":11}},{"id":"3e559383-094f-4e1e-a76b-883e5ced51c1","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":96,"box":{"x":70,"y":710,"width":766,"height":11}},{"id":"170f9e1e-3d70-40b3-ab0a-a28474b864c2","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":96,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"6246809d-7a13-4005-b33d-f2a41d0e3de0","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":96,"box":{"x":70,"y":740,"width":772,"height":11}},{"id":"786daa64-f237-45e7-a442-0918a733dc6b","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":96,"box":{"x":68,"y":755,"width":840,"height":11}},{"id":"f10d0b06-fbba-4666-9b71-402702896d7f","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":96,"box":{"x":68,"y":770,"width":665,"height":12}},{"id":"ab2e6fa6-a6b2-4066-ac92-3dea9258693f","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":96,"box":{"x":101,"y":793,"width":801,"height":11}},{"id":"045183dc-3c22-4067-893b-6e7660f5c816","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":96,"box":{"x":68,"y":808,"width":821,"height":11}},{"id":"d6c69a75-6ccb-4185-ad4e-8044848dc8e9","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":96,"box":{"x":68,"y":823,"width":808,"height":11}},{"id":"29d85ba5-6730-4f75-9bae-92a6fe4a82aa","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":96,"box":{"x":69,"y":838,"width":810,"height":12}},{"id":"1800e8cf-5f1a-4de5-99bc-65ca6daab786","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":96,"box":{"x":68,"y":854,"width":829,"height":11}},{"id":"a9d3b4f5-dd5e-49b0-bc1b-8a6f087bbbfa","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":96,"box":{"x":69,"y":869,"width":819,"height":11}},{"id":"5e3ad094-e500-4387-b4fb-5ce60f37a879","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":96,"box":{"x":69,"y":884,"width":833,"height":11}},{"id":"a0027d84-ec80-404c-9312-146f97e8e2a1","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":96,"box":{"x":68,"y":899,"width":474,"height":11}},{"id":"aa3d1db5-cfd5-4853-8989-4bc285b1ca57","block_type":"box","text":"II-49","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"75541d55-44d9-4532-865a-1704d81b97fa","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"482edcfc-283c-4767-8d1a-a7e7390d3ef1","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":97,"box":{"x":102,"y":45,"width":777,"height":11}},{"id":"8a3e4945-1a51-4ce9-9d4c-b64bbaa6c631","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":97,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"35f5a86e-1f2a-4abc-b72c-441b41b633c6","block_type":"box","text":"the PRC in notifications.","page_number":97,"box":{"x":68,"y":75,"width":171,"height":9}},{"id":"8fe1390c-577b-40d7-9b28-24ed36abeb46","block_type":"box","text":"Investment in Other Investment Companies.","page_number":97,"box":{"x":102,"y":98,"width":320,"height":11}},{"id":"01522658-30bc-401e-84bf-b0b35f30aa25","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":97,"box":{"x":429,"y":98,"width":402,"height":11}},{"id":"97c06dda-7059-41e8-86d9-f9444e8eb88e","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":97,"box":{"x":70,"y":113,"width":818,"height":11}},{"id":"0c513987-2cfb-4d51-ac57-24bb3c2ea7e7","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":97,"box":{"x":69,"y":128,"width":797,"height":11}},{"id":"9fc33ea5-29e8-49a5-8516-43d17e79cb1d","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":97,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"eb4f50f9-9723-4c3a-88d4-80d3ca9b4147","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":97,"box":{"x":70,"y":158,"width":814,"height":11}},{"id":"ead4e6d4-25db-45a1-be26-3998c2c898c3","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":97,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"67eb78a6-71a1-489f-9403-0d36f6474a82","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":97,"box":{"x":69,"y":188,"width":796,"height":12}},{"id":"b3201bb9-7298-4ff9-bc51-a1db14a87c2c","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":97,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"e10d657f-a049-4e80-adc4-384214fb8be4","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":97,"box":{"x":68,"y":218,"width":812,"height":12}},{"id":"f81a3897-9fd0-480d-86a6-f57891d30488","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":97,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"0c8cf240-385f-484e-a0f9-333db11254dd","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":97,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"17abd72d-913d-448e-baa4-51c145db8fe7","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":97,"box":{"x":68,"y":264,"width":821,"height":11}},{"id":"fd21a43c-34a0-4408-98cd-85a58b3dd7e1","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":97,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"987a7d5b-dd38-47c9-85f8-4b380621a3dc","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":97,"box":{"x":69,"y":294,"width":776,"height":11}},{"id":"bb7899b7-7694-4310-b088-6ce70e888426","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":97,"box":{"x":70,"y":309,"width":802,"height":11}},{"id":"257d3bc5-9e55-4140-b7cb-fddf29eaeefd","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":97,"box":{"x":69,"y":324,"width":801,"height":11}},{"id":"f7714b56-d860-46be-99fe-d177f24d2d81","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":97,"box":{"x":70,"y":339,"width":829,"height":12}},{"id":"22be1a0a-df63-402a-bfae-dbb9a94235a9","block_type":"box","text":"subject to certain conditions.","page_number":97,"box":{"x":69,"y":355,"width":206,"height":11}},{"id":"56b8cd49-a358-4e3c-8bd4-40e9124080a0","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":97,"box":{"x":101,"y":377,"width":799,"height":11}},{"id":"318811cc-3069-439d-8e24-5dbccfff8691","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":97,"box":{"x":102,"y":400,"width":779,"height":11}},{"id":"ee5aef9d-ded3-48a9-ba91-f57fa7a20d0d","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":97,"box":{"x":69,"y":415,"width":824,"height":11}},{"id":"3438fc9b-0c38-4b34-a762-1fa692b828b1","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":97,"box":{"x":69,"y":430,"width":836,"height":11}},{"id":"c777a6c1-df8e-46cb-a52f-c8b96e584b1f","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":97,"box":{"x":68,"y":445,"width":839,"height":12}},{"id":"09535036-5849-49c9-aed7-542f8d153358","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":97,"box":{"x":68,"y":460,"width":806,"height":12}},{"id":"0d2a8c64-011a-40b1-96a5-5310b0f0c01c","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":97,"box":{"x":68,"y":476,"width":810,"height":10}},{"id":"aca42b8b-5249-4bbc-bf75-e4f6a8ae1ba9","block_type":"box","text":"loss.","page_number":97,"box":{"x":70,"y":491,"width":31,"height":9}},{"id":"61474402-f4f1-41e6-a469-e552fbf1a371","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":97,"box":{"x":102,"y":513,"width":758,"height":12}},{"id":"90e4b78b-d49f-4e9f-949a-6ad9efb980dc","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":97,"box":{"x":69,"y":528,"width":837,"height":12}},{"id":"619fb0d2-be75-481b-bfe2-ee349aaedac8","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":97,"box":{"x":70,"y":544,"width":835,"height":11}},{"id":"f302b462-f181-4e30-8a43-40bd3c097534","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":97,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"4b9d33cd-ca40-45d4-8ca2-707a57bd4673","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":97,"box":{"x":69,"y":574,"width":768,"height":11}},{"id":"6c67d548-d26b-49c1-9d39-fb1e149f59f1","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":97,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"5f32ece1-52b3-4450-88f3-b8d00f51fa4b","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":97,"box":{"x":69,"y":604,"width":830,"height":11}},{"id":"6e292214-4879-4543-bf23-c32ca4fdc255","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":97,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"622a2235-4a97-458b-8cc7-de7a548d48ba","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":97,"box":{"x":70,"y":634,"width":778,"height":11}},{"id":"25ab9c77-d3cf-4be0-a443-fa0df665e949","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":97,"box":{"x":69,"y":649,"width":796,"height":12}},{"id":"b94a15c1-ab34-4815-8e08-b16b8dc20296","block_type":"box","text":"assets.","page_number":97,"box":{"x":69,"y":665,"width":51,"height":8}},{"id":"4e5de45c-fd7f-4785-a312-caf420fac5a2","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":97,"box":{"x":101,"y":687,"width":776,"height":11}},{"id":"7e4ba019-3f97-46cc-80d8-adf96a371ca6","block_type":"box","text":"may be limited. In addition, a fund-of-funds (e.g., an investment company that seeks to meet its investment objective","page_number":97,"box":{"x":69,"y":702,"width":833,"height":12}},{"id":"ce98014a-498b-499e-94af-727366c92c39","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":97,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"ce7b580b-8500-441f-8e7c-9647433da7e9","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":97,"box":{"x":69,"y":732,"width":472,"height":12}},{"id":"1d17c594-5648-41ec-986b-a4f9c7eeab32","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":97,"box":{"x":101,"y":755,"width":790,"height":11}},{"id":"f7d92668-7233-4298-84c9-fec6d74ed155","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":97,"box":{"x":70,"y":770,"width":818,"height":12}},{"id":"860d1789-c81a-42a5-afe4-5e54c2742b08","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":97,"box":{"x":69,"y":785,"width":791,"height":12}},{"id":"530eb6a4-e02d-4c92-b7e8-f2bae97de9e2","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":97,"box":{"x":70,"y":801,"width":795,"height":11}},{"id":"cd15b575-02e9-459e-a1d9-32d8b4e86681","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":97,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"9741e3f9-dbba-4542-9b31-d2f45e0b6d2e","block_type":"box","text":"countries.","page_number":97,"box":{"x":69,"y":831,"width":69,"height":9}},{"id":"ddac4255-b5bc-4b44-954a-10028c418fd5","block_type":"box","text":"Issuer Insolvency Risk.","page_number":97,"box":{"x":102,"y":854,"width":166,"height":11}},{"id":"4004edf1-dede-426c-9ff2-b3a4852e6bbf","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":97,"box":{"x":275,"y":853,"width":631,"height":12}},{"id":"d0f09403-5647-411d-a711-cc1803f57188","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":97,"box":{"x":69,"y":869,"width":832,"height":11}},{"id":"1956d2c2-ca66-4b98-b466-a5e77a01816d","block_type":"box","text":"II-50","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2b12679f-7e61-46a2-b892-c6d1469a2369","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9bb6ce66-3d0d-42aa-aed4-351f7feb900f","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":98,"box":{"x":69,"y":45,"width":781,"height":11}},{"id":"2af88db2-3af6-438a-862c-bbd9b7265e1c","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":98,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"56a0debe-716d-4424-9c10-2191b3a96e4a","block_type":"box","text":"issuer uncertain.","page_number":98,"box":{"x":70,"y":75,"width":118,"height":9}},{"id":"093c5ba1-a0bd-4f6c-9428-b44164bb4b83","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":98,"box":{"x":102,"y":98,"width":788,"height":11}},{"id":"38c21887-2517-4a0b-a105-b5dc752d0823","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":98,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"8a0ab2f7-ead4-411a-b7ec-519029dfe08b","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":98,"box":{"x":68,"y":128,"width":779,"height":11}},{"id":"3d1e983c-79ab-493d-a4c7-2911c04ac8ef","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":98,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"bd307396-48cf-46e2-acef-ae082e2ab352","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":98,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"05ac72e1-8cd4-4f56-a509-3086a3198a3d","block_type":"box","text":"eventually be satisfied.","page_number":98,"box":{"x":69,"y":173,"width":162,"height":11}},{"id":"d79ae3dc-4c4e-40e5-b9be-1eef99165592","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":98,"box":{"x":102,"y":196,"width":805,"height":11}},{"id":"89d41e62-6abc-478d-a06f-21aa8a86109c","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":98,"box":{"x":70,"y":211,"width":827,"height":11}},{"id":"d6b552af-e86a-4ce3-9dbf-cc9e67a84d16","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":98,"box":{"x":69,"y":226,"width":819,"height":11}},{"id":"7adb0a14-a533-451e-b6f2-f4f978ba827d","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":98,"box":{"x":69,"y":241,"width":802,"height":11}},{"id":"3dd962af-7d2c-43be-ba73-6efcf163c142","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":98,"box":{"x":70,"y":256,"width":830,"height":12}},{"id":"1c924ebc-53f4-41ee-a0bc-7f5838ff7f4f","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":98,"box":{"x":70,"y":272,"width":805,"height":11}},{"id":"6ac26cec-3cbe-4ee2-8d09-94ba5028197e","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":98,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"653cc203-bce6-4fa2-a498-f84313eac265","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":98,"box":{"x":70,"y":302,"width":828,"height":11}},{"id":"365e8372-7835-4190-a6ad-598ad69cdeb4","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":98,"box":{"x":69,"y":317,"width":820,"height":11}},{"id":"bd2c35f6-9390-46b8-b78b-875202167fd3","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":98,"box":{"x":70,"y":332,"width":820,"height":11}},{"id":"ebe1b2f1-9e60-4646-a87a-3162c9a5815b","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":98,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"7e3a6cbd-aa54-48ad-81c9-1ec85fe42a1f","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":98,"box":{"x":68,"y":362,"width":788,"height":11}},{"id":"b129cd91-1474-431a-9cf2-a80101e55d4a","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":98,"box":{"x":68,"y":377,"width":826,"height":11}},{"id":"51fb775f-b4b8-483a-87da-5995752542ba","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":98,"box":{"x":69,"y":392,"width":809,"height":12}},{"id":"83f484d4-6ddc-4388-85ff-c8d199c7c001","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":98,"box":{"x":68,"y":407,"width":809,"height":12}},{"id":"3f5fd51a-e31a-48a0-b37b-2fe5c1e0746f","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":98,"box":{"x":69,"y":423,"width":741,"height":11}},{"id":"0d34ebe2-341d-4f75-ba47-5eb5bd105f08","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":98,"box":{"x":101,"y":446,"width":780,"height":11}},{"id":"183a8326-1f18-41f8-93dc-87c0247be028","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":98,"box":{"x":68,"y":460,"width":807,"height":12}},{"id":"4409122e-0245-436b-9405-ed59ca20af26","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":98,"box":{"x":69,"y":475,"width":795,"height":11}},{"id":"9a399710-1b79-4923-b934-c71ebd4cbfb8","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":98,"box":{"x":68,"y":491,"width":814,"height":11}},{"id":"db08f1ae-ab1e-46f5-b612-bde15021792f","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":98,"box":{"x":70,"y":506,"width":439,"height":11}},{"id":"9a67fe53-4b30-4783-a25e-2ded60b6ddee","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":98,"box":{"x":102,"y":528,"width":806,"height":12}},{"id":"eeab312b-36ff-472f-8fc4-c6bcb6b977a7","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":98,"box":{"x":70,"y":543,"width":829,"height":12}},{"id":"a8d6ad73-526e-4d4b-8273-e6fe3c87ba51","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":98,"box":{"x":69,"y":559,"width":767,"height":11}},{"id":"75ab7239-fbf4-4c4f-96e6-b17bd0f23875","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":98,"box":{"x":69,"y":574,"width":771,"height":11}},{"id":"2faa05d2-995a-4747-9e16-787adbc07d6b","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":98,"box":{"x":70,"y":589,"width":823,"height":11}},{"id":"2fc4aa8a-68ae-4bd2-b5a8-d9aed5884f2d","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":98,"box":{"x":70,"y":604,"width":822,"height":11}},{"id":"03282e1b-4cee-43dc-aa77-6e23059e9cff","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":98,"box":{"x":69,"y":619,"width":828,"height":11}},{"id":"c5a39378-bbec-4f2b-990e-334414f88daf","block_type":"box","text":"that assumed generally by an investor.","page_number":98,"box":{"x":68,"y":634,"width":274,"height":12}},{"id":"3eac54eb-3b9a-4bb1-a680-ad592d0e9d83","block_type":"box","text":"Lease Obligations.","page_number":98,"box":{"x":102,"y":657,"width":133,"height":11}},{"id":"5b4f0fd3-0425-4a17-8255-f2fa0320c50e","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":98,"box":{"x":241,"y":657,"width":653,"height":11}},{"id":"3c25ea7c-35dc-4177-aa2a-f12230ed67a1","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":98,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"77b9b192-c1ae-4219-8787-cebfe9639842","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":98,"box":{"x":69,"y":687,"width":602,"height":11}},{"id":"e142c6bb-4c78-4d01-8d79-5564005aff13","block_type":"box","text":"Life Settlement Investments.","page_number":98,"box":{"x":102,"y":710,"width":210,"height":9}},{"id":"358cb11d-72d5-4ba4-a776-19925c37f278","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":98,"box":{"x":318,"y":710,"width":589,"height":11}},{"id":"4cfc3045-0cc7-496e-80a9-315ecd6e29f7","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":98,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"d12800d6-214f-4453-ac7e-931151870efa","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":98,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"fdb35394-5055-4a60-be33-8e389dac5849","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":98,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"28da2e51-63fb-4667-bf44-405e8697f3cf","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":98,"box":{"x":70,"y":770,"width":797,"height":12}},{"id":"5446ce85-6be6-448e-8ea3-ecfb00a4d8aa","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":98,"box":{"x":70,"y":786,"width":775,"height":11}},{"id":"25ce692a-7940-4de5-9f52-739b56d5cdc5","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":98,"box":{"x":69,"y":801,"width":805,"height":11}},{"id":"f4075344-78d0-4b53-95fb-2b04c4d605fe","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":98,"box":{"x":70,"y":816,"width":789,"height":11}},{"id":"4728835c-e183-46ba-9d41-91ef383a74a6","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":98,"box":{"x":70,"y":831,"width":829,"height":11}},{"id":"1e91bab5-0a11-4c19-80bd-082cdf6c021f","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":98,"box":{"x":70,"y":846,"width":813,"height":11}},{"id":"d1601aa8-0a0c-4fca-b860-db6965702c85","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":98,"box":{"x":69,"y":861,"width":758,"height":11}},{"id":"90be48fe-525d-4198-8738-173a79eaad39","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":98,"box":{"x":69,"y":876,"width":832,"height":11}},{"id":"a13ef155-b071-45fe-b508-c228173702cd","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":98,"box":{"x":69,"y":891,"width":800,"height":12}},{"id":"776ef4c6-98a4-4f74-84fc-b118af812bb9","block_type":"box","text":"II-51","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dd2f1d64-d48b-430d-9d85-298a312b4e85","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2c687e77-1c5b-4a3c-bdaa-683ac4bebfc8","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":99,"box":{"x":68,"y":45,"width":809,"height":11}},{"id":"9031d3f1-6203-4058-8133-974d21d11ee9","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":99,"box":{"x":69,"y":60,"width":730,"height":11}},{"id":"6645d9eb-caa2-45fc-a943-233e56253780","block_type":"box","text":"Liquidity Risk Management.","page_number":99,"box":{"x":102,"y":83,"width":202,"height":11}},{"id":"099ce80d-892b-49f4-aaeb-2283fe7222d2","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":99,"box":{"x":311,"y":83,"width":591,"height":11}},{"id":"d7140376-df6e-4380-8131-09206d66f7fa","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":99,"box":{"x":69,"y":98,"width":835,"height":11}},{"id":"7f2515eb-7508-4c8e-9888-e387be1cee1b","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":99,"box":{"x":70,"y":113,"width":803,"height":11}},{"id":"79cea1a1-2965-4cbe-920b-daa1b513f1f8","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":99,"box":{"x":70,"y":128,"width":801,"height":11}},{"id":"74c6a44f-4458-4d21-b9d1-8f389f870626","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":99,"box":{"x":69,"y":143,"width":822,"height":11}},{"id":"612d8326-3cff-43ea-a5d2-3469f6713f21","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":99,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"0c323b76-5a3d-4e23-af8b-1d0e217c66a5","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":99,"box":{"x":70,"y":173,"width":838,"height":11}},{"id":"59b232ad-99a5-4707-ae79-9a80e47726fe","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":99,"box":{"x":70,"y":188,"width":804,"height":11}},{"id":"f166f1ca-4230-413d-a32b-e9717eea9219","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":99,"box":{"x":69,"y":203,"width":821,"height":12}},{"id":"eb74ac24-d0cc-4953-ac3b-373add98ed49","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":99,"box":{"x":70,"y":218,"width":815,"height":12}},{"id":"192a8824-7eb3-465e-9748-bfef5751fdf0","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":99,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"cbf6cee0-3d6b-4044-85ae-0c52b150dccd","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":99,"box":{"x":69,"y":249,"width":601,"height":11}},{"id":"5e5d6da2-7e22-4d41-b83c-2c71c1a28b59","block_type":"box","text":"Master Limited Partnerships.","page_number":99,"box":{"x":102,"y":272,"width":211,"height":10}},{"id":"3aa3c4f9-aa5a-41e6-9873-57216bd51e5c","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":99,"box":{"x":320,"y":272,"width":577,"height":11}},{"id":"4bb27211-b425-490b-9818-5482ea6407c0","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":99,"box":{"x":68,"y":287,"width":816,"height":11}},{"id":"1bfcdd87-d4e1-4041-8021-0b185a5a6004","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":99,"box":{"x":68,"y":302,"width":777,"height":11}},{"id":"bc7582a0-a079-49bb-aa7d-129a710bf8ad","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":99,"box":{"x":70,"y":317,"width":792,"height":11}},{"id":"135981f2-6385-48cb-a4ef-986b99b4b64b","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":99,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"3fadcb48-2398-4227-9b61-5cfb28133e8e","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":99,"box":{"x":70,"y":347,"width":791,"height":11}},{"id":"34dce262-fd6e-457d-a482-b757042b4665","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":99,"box":{"x":68,"y":362,"width":812,"height":11}},{"id":"d35294b1-738f-412a-bd49-5ed6e28806d4","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":99,"box":{"x":69,"y":377,"width":770,"height":12}},{"id":"cbddcc45-6562-4e5e-aae9-2c38ec2ccd16","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":99,"box":{"x":69,"y":392,"width":833,"height":12}},{"id":"2d31ac7f-7d8c-43ae-988d-d46f782e2003","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":99,"box":{"x":69,"y":407,"width":799,"height":12}},{"id":"f169cd4d-af56-4ffb-aca7-0174140fbeb7","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":99,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"a52328ef-4646-4387-84e8-579c51d85404","block_type":"box","text":"in the partnership’s operations and management.","page_number":99,"box":{"x":70,"y":438,"width":352,"height":11}},{"id":"cf1f391c-4c9b-406a-85d4-5099b1075d97","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":99,"box":{"x":102,"y":460,"width":794,"height":12}},{"id":"9e679dcf-1b5c-4963-89bc-dbd984f23e2f","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":99,"box":{"x":69,"y":476,"width":809,"height":11}},{"id":"41daf2d7-6c83-4c97-919b-4fc7c97a7208","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":99,"box":{"x":69,"y":491,"width":804,"height":11}},{"id":"6e9c32a9-6a95-4342-823a-1f9d0615374c","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":99,"box":{"x":69,"y":506,"width":808,"height":11}},{"id":"c3991cfb-c71d-4e99-9109-7cf5d6c7e3d0","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":99,"box":{"x":70,"y":521,"width":816,"height":11}},{"id":"1032624e-8a64-4150-ba33-f8670eb8c39c","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":99,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"9a107870-5f4f-4f61-87f1-f0e8fd29baab","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":99,"box":{"x":68,"y":551,"width":835,"height":11}},{"id":"52dbff88-7931-452a-a11a-ed5e42eff9eb","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":99,"box":{"x":69,"y":566,"width":838,"height":11}},{"id":"9a493e9a-9689-4601-b8ea-bd815f919c81","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":99,"box":{"x":70,"y":581,"width":839,"height":12}},{"id":"c69da178-4b33-496d-8603-9f0fd114dd78","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":99,"box":{"x":68,"y":597,"width":828,"height":11}},{"id":"bfe2c800-669a-4ff6-a745-29f8623e26db","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":99,"box":{"x":70,"y":612,"width":761,"height":11}},{"id":"215e877b-6f50-4528-97a5-8e4536c255ec","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":99,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"0950f5c8-7cec-4744-85a7-28e8a3d9ce0b","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":99,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"68c6042f-3e94-4ae1-9fb7-8de0263fa5a9","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":99,"box":{"x":69,"y":657,"width":366,"height":11}},{"id":"0e6dbbbe-2f4e-42ac-86d0-ea442e9cd021","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":99,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"19664f1e-3521-4ef0-8692-89e4b01c1720","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":99,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"5135e586-85fb-47d2-860f-b869681ae219","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":99,"box":{"x":69,"y":710,"width":787,"height":11}},{"id":"344ffea4-7353-4464-b68a-3ed263453aa7","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":99,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"8fccd355-ae81-4a34-972b-a0077376f58d","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":99,"box":{"x":69,"y":740,"width":828,"height":11}},{"id":"545409a1-e10b-4acb-b9c8-362a7e18afdd","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":99,"box":{"x":69,"y":755,"width":387,"height":11}},{"id":"9a877a5e-fb8a-40f8-be46-578966307e6e","block_type":"box","text":"Merger Transaction Risk.","page_number":99,"box":{"x":102,"y":778,"width":183,"height":11}},{"id":"9d3280cd-c8ad-4a7c-b9ce-d5a8f217ff6f","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":99,"box":{"x":291,"y":778,"width":616,"height":11}},{"id":"6d89e184-b160-46ec-8686-f6f76c5c2947","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":99,"box":{"x":68,"y":793,"width":827,"height":11}},{"id":"39fd3e86-8a34-4e2a-9011-10f3982c57ce","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":99,"box":{"x":70,"y":808,"width":816,"height":11}},{"id":"0d570afd-9be7-4845-ade0-c3722067551b","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":99,"box":{"x":68,"y":823,"width":825,"height":12}},{"id":"f2a10492-3617-485f-aa7e-1119e506394c","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":99,"box":{"x":69,"y":838,"width":832,"height":12}},{"id":"720238d1-30e3-4db3-aca5-0a85d5103468","block_type":"box","text":"the Fund and may lose significant value.","page_number":99,"box":{"x":68,"y":853,"width":286,"height":12}},{"id":"d2e0d391-2440-47d8-a1c7-c8d92e113699","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":99,"box":{"x":102,"y":876,"width":723,"height":11}},{"id":"f660e000-39c4-4415-ae2d-cc1d579b44cb","block_type":"box","text":"Certain","page_number":99,"box":{"x":831,"y":876,"width":50,"height":9}},{"id":"e4b4cc0d-17cf-43aa-b3cf-f95601f646cd","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":99,"box":{"x":70,"y":891,"width":778,"height":12}},{"id":"89b4b52b-9a63-4060-b59d-b089652f6ae2","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":99,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"ec9f9642-5b90-4d5b-92ee-08f165aa0402","block_type":"box","text":"II-52","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aa0dcb7a-1572-49f1-aa2b-f711f1298e69","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9865dc9-f9c0-48db-832d-bfb88c24df2f","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":100,"box":{"x":69,"y":44,"width":820,"height":12}},{"id":"985d191b-f158-4988-bc2b-f1652090cf2f","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":100,"box":{"x":68,"y":60,"width":794,"height":11}},{"id":"f1bb4343-1042-4ca3-91e2-9fbe01120ee5","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":100,"box":{"x":68,"y":75,"width":781,"height":11}},{"id":"694e5133-8e06-46c9-8ccb-988313e10399","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":100,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"afeaa5ba-a884-4cdd-b454-9478aa379453","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":100,"box":{"x":69,"y":105,"width":785,"height":11}},{"id":"599053da-f521-42d8-83d3-05781939c782","block_type":"box","text":"branches of domestic banks.","page_number":100,"box":{"x":69,"y":120,"width":205,"height":9}},{"id":"ddbadbc1-376c-4de5-8126-ff27f5a4bc56","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":100,"box":{"x":101,"y":143,"width":785,"height":11}},{"id":"c8034b6b-c385-4c8c-acd4-0de9580d521f","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":100,"box":{"x":68,"y":158,"width":787,"height":11}},{"id":"4258667f-ab32-4208-84f3-aed9c2d88a8c","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":100,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"6cc7ba04-d79f-4803-8702-ce8f7ed59527","block_type":"box","text":"paper of a foreign issuer.","page_number":100,"box":{"x":70,"y":188,"width":176,"height":12}},{"id":"8c20845d-a694-4d4d-8c92-014f65510f46","block_type":"box","text":"Money Market Securities.","page_number":100,"box":{"x":102,"y":211,"width":188,"height":11}},{"id":"e49596d6-6b9f-4118-a816-131d0e855889","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":100,"box":{"x":296,"y":211,"width":578,"height":11}},{"id":"92c0ab8f-be0b-4a30-a0db-0249476fa633","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":100,"box":{"x":69,"y":226,"width":802,"height":11}},{"id":"2e9609bd-edea-46c6-b476-47e0033ac896","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":100,"box":{"x":69,"y":241,"width":386,"height":11}},{"id":"137f9268-332d-41da-bb53-baf69871fceb","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":100,"box":{"x":69,"y":261,"width":779,"height":12}},{"id":"0a309949-2f88-49eb-a133-14e37cf07235","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":100,"box":{"x":102,"y":276,"width":776,"height":12}},{"id":"cd7cd958-c252-406d-8dad-49b48e835749","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":100,"box":{"x":69,"y":297,"width":821,"height":11}},{"id":"b8adfffb-7b65-42c3-9a13-b59003d4e815","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":100,"box":{"x":102,"y":312,"width":795,"height":11}},{"id":"ff780405-6342-4a0c-86aa-a81cf482a6bc","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":100,"box":{"x":102,"y":327,"width":757,"height":11}},{"id":"ebfd679f-1450-457e-9715-3e7ffc0a0d36","block_type":"box","text":"agencies;","page_number":100,"box":{"x":102,"y":342,"width":66,"height":11}},{"id":"4e87d9ee-6f7d-40d1-99b5-bc6791a9ed8d","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":100,"box":{"x":69,"y":362,"width":792,"height":11}},{"id":"9b72597d-0cf2-486d-9fe8-3930f46706b6","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":100,"box":{"x":102,"y":377,"width":344,"height":12}},{"id":"f372fad4-7771-43a3-8ca9-971b9c1bafe4","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":100,"box":{"x":69,"y":397,"width":776,"height":12}},{"id":"9642734f-922e-481a-a61d-4041b3ea0da8","block_type":"box","text":"obligations and credit card receivables);","page_number":100,"box":{"x":102,"y":413,"width":283,"height":11}},{"id":"ebf7313e-2ff1-4527-a728-80f86bab5b8f","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":100,"box":{"x":69,"y":433,"width":778,"height":11}},{"id":"e710f898-48ed-4d2d-a92f-8f97e95d08fa","block_type":"box","text":"authorities and related custodial receipts;","page_number":100,"box":{"x":102,"y":448,"width":296,"height":11}},{"id":"671f1736-7a18-4888-8cb2-b41698a9ce31","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":100,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"14fbe1c6-9922-4cf0-a2ad-db312de14109","block_type":"box","text":"agencies or authorities;","page_number":100,"box":{"x":102,"y":483,"width":166,"height":11}},{"id":"ce21416e-8b69-4775-8e96-2b13a5da4086","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":100,"box":{"x":69,"y":503,"width":528,"height":12}},{"id":"84fd5b4f-0bdf-408e-bfb7-c00e436f7f24","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":100,"box":{"x":69,"y":524,"width":534,"height":11}},{"id":"22ccca45-7bb2-4e83-a6f3-534d75642102","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":100,"box":{"x":69,"y":544,"width":447,"height":11}},{"id":"26741a09-6501-43f4-9157-b48d82cd9b13","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":100,"box":{"x":69,"y":564,"width":812,"height":11}},{"id":"b48db89b-3edf-44d5-818c-245a373c6fc7","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":100,"box":{"x":102,"y":579,"width":766,"height":11}},{"id":"c7cd668e-7d7a-4287-8253-cf44d292d591","block_type":"box","text":"States;","page_number":100,"box":{"x":102,"y":594,"width":49,"height":10}},{"id":"4ac4e77c-4b55-4919-8afd-63197b9bfac1","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":100,"box":{"x":69,"y":614,"width":829,"height":11}},{"id":"3696cf9c-cdd3-4434-a75e-a44eea948f15","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":100,"box":{"x":102,"y":629,"width":379,"height":11}},{"id":"970b34fe-4e74-42c9-92c2-b974db167144","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":100,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"4f743ebc-d446-4c4f-8ab8-f78fccdc805d","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":100,"box":{"x":102,"y":665,"width":207,"height":11}},{"id":"7900ebcd-9c33-4c53-8380-11e211729eec","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":100,"box":{"x":69,"y":685,"width":458,"height":11}},{"id":"856f81f2-f6ab-420e-9ccf-205536d6e4ac","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":100,"box":{"x":69,"y":705,"width":837,"height":11}},{"id":"84daa17f-8f68-4757-9e9d-2da0612d7bd6","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":100,"box":{"x":101,"y":720,"width":589,"height":11}},{"id":"fb93cf13-a0bb-4634-a992-5f06442ed080","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":100,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"3f8e2251-0987-4e49-b48d-d4aa4486042f","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":100,"box":{"x":102,"y":755,"width":764,"height":11}},{"id":"764b7402-4565-486f-b53e-c005db6566ab","block_type":"box","text":"States.","page_number":100,"box":{"x":102,"y":770,"width":49,"height":9}},{"id":"1bcab466-fb00-4e6d-9d85-72800a433684","block_type":"box","text":"Mortgage-Related Securities.","page_number":100,"box":{"x":102,"y":793,"width":213,"height":11}},{"id":"78121549-151c-470c-ba42-298d6829ba21","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":100,"box":{"x":102,"y":816,"width":203,"height":11}},{"id":"9214df31-31ff-4eb8-9410-f9a5cfe8132b","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":100,"box":{"x":312,"y":816,"width":560,"height":11}},{"id":"14832184-9759-4b10-baaf-063bbc2c439f","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":100,"box":{"x":70,"y":831,"width":805,"height":11}},{"id":"905863ea-4621-4bfe-8682-91f6e9dcc03c","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":100,"box":{"x":69,"y":846,"width":819,"height":11}},{"id":"702c9b6c-09d0-4c74-a2b8-eb2c1e4c90f7","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":100,"box":{"x":69,"y":861,"width":832,"height":11}},{"id":"332da09d-2b33-4c37-a6ef-e62d49c4d556","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":100,"box":{"x":69,"y":876,"width":838,"height":11}},{"id":"746f8884-6538-487d-a8cd-921ca717b8b3","block_type":"box","text":"maturity or specified call dates.","page_number":100,"box":{"x":69,"y":891,"width":222,"height":11}},{"id":"3d17f379-d74d-4601-8e24-c66106748532","block_type":"box","text":"II-53","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"317f0a6a-011b-404f-b1d9-fbb2b3d07a12","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c5343ece-86cd-4251-bac6-2c8592a98fc6","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":101,"box":{"x":102,"y":45,"width":785,"height":11}},{"id":"b1aa3850-3cdd-418a-8fda-5384e2d0d5b2","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":101,"box":{"x":68,"y":60,"width":838,"height":11}},{"id":"8f09eeea-21e5-4b5e-9c1c-0b72f166f5f4","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":101,"box":{"x":69,"y":75,"width":836,"height":11}},{"id":"adc2ac9f-caa9-4925-b939-ea3d1baa5ce7","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":101,"box":{"x":70,"y":90,"width":837,"height":11}},{"id":"abfecee4-10fa-43b6-a0bd-d5022c600e18","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":101,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"21047e91-2527-46c1-9759-a0f14815a965","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":101,"box":{"x":70,"y":120,"width":811,"height":12}},{"id":"1815476d-046d-4580-a3cd-5cbe37e322dc","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":101,"box":{"x":68,"y":135,"width":837,"height":12}},{"id":"fc8e6122-3ba3-44a2-842b-73b09c39843a","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":101,"box":{"x":70,"y":150,"width":834,"height":12}},{"id":"0fb2ee77-8ad7-4095-ac17-383ee5ba032c","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":101,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"2aee9c5f-1ca9-49b6-b5ad-865bf89bed8f","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":101,"box":{"x":69,"y":181,"width":827,"height":11}},{"id":"61d0fa2f-fce9-499a-8cbc-26bdaa7c3af4","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":101,"box":{"x":68,"y":196,"width":805,"height":11}},{"id":"209c7dcb-72b9-408b-bd15-c4a263d17cb9","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":101,"box":{"x":68,"y":211,"width":834,"height":11}},{"id":"c471a9ec-40aa-4b7e-a596-0fabc4e87126","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":101,"box":{"x":68,"y":226,"width":791,"height":11}},{"id":"12a3c4e2-688c-442f-afdf-74ebfc272b86","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":101,"box":{"x":69,"y":241,"width":816,"height":11}},{"id":"cdc95866-607e-4dc1-b3ae-c3dc0e054842","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":101,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"e8648923-3307-4b47-9f7e-513b5f73d1e9","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":101,"box":{"x":69,"y":271,"width":761,"height":12}},{"id":"2b7c5f7d-22d0-4066-b680-c305d802bce7","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":101,"box":{"x":69,"y":286,"width":791,"height":12}},{"id":"74c5a65a-bcd2-415c-b32f-32d2c2bd45fa","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":101,"box":{"x":69,"y":302,"width":602,"height":11}},{"id":"425fffa2-b599-49dd-aef1-fc893cd56ed4","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":101,"box":{"x":101,"y":324,"width":761,"height":12}},{"id":"f05a61a2-5d6c-497e-85b2-816e5932ed17","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":101,"box":{"x":70,"y":339,"width":800,"height":12}},{"id":"3b1921e9-d649-447c-9106-6d0c9cf3fd43","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":101,"box":{"x":69,"y":355,"width":833,"height":11}},{"id":"70e23344-427d-4dec-9e1a-7e387d0cf12e","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":101,"box":{"x":69,"y":370,"width":809,"height":11}},{"id":"6822d7f8-4a08-44f4-aaf1-3a34e55a7d44","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":101,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"f591d8cd-177c-4b99-9afc-a70b51729047","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":101,"box":{"x":69,"y":400,"width":778,"height":11}},{"id":"5879d981-cf28-4faf-9884-f883702e2ab3","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":101,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"5b863e97-cf48-4226-9423-07e75503f321","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":101,"box":{"x":69,"y":430,"width":773,"height":11}},{"id":"102391a9-3394-44f1-9ef3-8285566ca4d9","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":101,"box":{"x":69,"y":445,"width":818,"height":11}},{"id":"0c37d63d-3692-4063-bc8d-38be2c78d720","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":101,"box":{"x":70,"y":460,"width":822,"height":12}},{"id":"a9c77f85-3a14-40ed-88f5-489c5f25fcab","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":101,"box":{"x":69,"y":476,"width":399,"height":11}},{"id":"f6eea54f-49be-4450-af98-9b65ce14613b","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":101,"box":{"x":101,"y":498,"width":802,"height":11}},{"id":"e9bfa829-df0a-41ce-9507-020166b9b195","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":101,"box":{"x":69,"y":513,"width":830,"height":12}},{"id":"01ad0f25-be31-46cd-b016-9ab3fcc918a2","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":101,"box":{"x":70,"y":529,"width":818,"height":11}},{"id":"2b43ebe6-b332-4cf3-a5e5-9f8c683691b7","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":101,"box":{"x":70,"y":544,"width":766,"height":11}},{"id":"1d79320f-10ed-492c-9fc2-edd37abdba87","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":101,"box":{"x":69,"y":559,"width":808,"height":11}},{"id":"f55b45f1-ae5c-44f7-a473-d9e504a5e35f","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":101,"box":{"x":70,"y":574,"width":825,"height":11}},{"id":"b3a86c0a-1d1b-49b1-aeb1-4d10aa83d197","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":101,"box":{"x":69,"y":589,"width":761,"height":11}},{"id":"0b9eb32e-3b78-4e1f-bfde-7dfd1d7626c4","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":101,"box":{"x":102,"y":612,"width":743,"height":11}},{"id":"a4486f17-e1e3-47fb-959f-34a5cbc53e47","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":101,"box":{"x":70,"y":627,"width":831,"height":11}},{"id":"22d7e22c-251b-4eb3-b532-d3107d55de2a","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":101,"box":{"x":70,"y":642,"width":815,"height":11}},{"id":"c1cdb4df-d9da-4f3e-b001-b2ed96bc2780","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":101,"box":{"x":69,"y":657,"width":737,"height":11}},{"id":"413b3318-33b3-43bd-a88a-7c566fa318e5","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":101,"box":{"x":68,"y":672,"width":814,"height":11}},{"id":"2a23602c-dd2c-451c-8598-76ebb3392c5c","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":101,"box":{"x":68,"y":687,"width":794,"height":11}},{"id":"c403026c-f291-4f88-8354-555ded5cdc5e","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":101,"box":{"x":70,"y":702,"width":828,"height":12}},{"id":"1524d145-7424-4190-9e01-f09af3294413","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":101,"box":{"x":69,"y":717,"width":798,"height":12}},{"id":"b42d0a89-692c-44dc-ac2c-fcbd41751d50","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":101,"box":{"x":68,"y":733,"width":798,"height":11}},{"id":"b4b3d4b1-33ea-4da6-b90d-bc515cf8d6f7","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":101,"box":{"x":70,"y":748,"width":788,"height":11}},{"id":"ce9a3782-3328-4d8e-b16a-561d2acfa1a4","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":101,"box":{"x":68,"y":763,"width":840,"height":11}},{"id":"a97a3b8a-398d-47e3-936a-55417bca1007","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":101,"box":{"x":68,"y":778,"width":825,"height":11}},{"id":"2bc82e8d-b354-40fd-8b57-02b420fbe66f","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":101,"box":{"x":70,"y":793,"width":830,"height":11}},{"id":"9fa688b6-8525-4061-b983-375b5fb67036","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":101,"box":{"x":70,"y":808,"width":770,"height":11}},{"id":"78720d9a-3d43-4b2d-b0ac-bf8891eef2db","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":101,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"69bca403-a4fd-4819-b9a9-08de9a9701be","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":101,"box":{"x":69,"y":838,"width":829,"height":12}},{"id":"b8710a70-03ff-42e2-a8e7-c2451c4869cd","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":101,"box":{"x":70,"y":853,"width":832,"height":12}},{"id":"2922931d-cb7d-4b13-8cfb-fe15e78a0e28","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":101,"box":{"x":70,"y":869,"width":792,"height":11}},{"id":"b251ad2f-1fdb-4a03-90a8-9b5d7be25852","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":101,"box":{"x":68,"y":884,"width":819,"height":11}},{"id":"82a4c468-84c6-4431-bff4-b6bcf50f083a","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":101,"box":{"x":68,"y":899,"width":829,"height":11}},{"id":"9032abe9-380e-40be-9ba6-9f6ec3cd2116","block_type":"box","text":"II-54","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d12d2307-38b6-422b-8033-3f30e808cf51","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3ed2246-a267-435a-b360-62121784eccf","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":102,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"b72c0f66-2b9c-4f2e-9e66-7ae56a008b20","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":102,"box":{"x":70,"y":60,"width":401,"height":11}},{"id":"6fdc5229-b4ef-40f6-86d3-e03e547920e0","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":102,"box":{"x":102,"y":83,"width":786,"height":11}},{"id":"05e06b57-b4e2-494c-8437-c04f0e906c51","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":102,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"7bf6bdf3-9450-48e8-9578-9f8fe0212b50","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":102,"box":{"x":69,"y":113,"width":782,"height":11}},{"id":"98dad65f-b11c-420d-8619-24f632d393d8","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":102,"box":{"x":102,"y":135,"width":802,"height":12}},{"id":"7adc2a7a-59ea-49c7-a8e2-790edf4be713","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":102,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"cfe1801a-f2d4-49cc-80e9-bc481b50aed4","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":102,"box":{"x":70,"y":166,"width":814,"height":11}},{"id":"2f7fdb64-2191-4405-9f68-14b03393f7de","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":102,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"f3640908-856b-4c4b-9a27-c89d9be2a35b","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":102,"box":{"x":70,"y":196,"width":789,"height":11}},{"id":"c285f44e-0e8e-49b7-9d21-f170361454b6","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":102,"box":{"x":70,"y":211,"width":827,"height":11}},{"id":"eae7d500-bbd5-43b0-94df-552f27c951c8","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":102,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"1bd24cda-a4d9-4940-a5ed-c844bffa98f8","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":102,"box":{"x":70,"y":241,"width":810,"height":11}},{"id":"05fbb0f7-34ca-4334-b4ee-221c267802bf","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":102,"box":{"x":69,"y":256,"width":820,"height":12}},{"id":"f9f8d2b4-8d31-419c-b5f2-217f12cb3206","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":102,"box":{"x":70,"y":271,"width":812,"height":12}},{"id":"9a4e54be-3f14-4b33-919e-08cb591af992","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":102,"box":{"x":69,"y":287,"width":790,"height":11}},{"id":"183c8b35-0cc7-403e-a83f-35b6d5a98d55","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":102,"box":{"x":69,"y":302,"width":604,"height":11}},{"id":"17dd8834-5966-42b9-8ab3-869635f55e47","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":102,"box":{"x":102,"y":325,"width":774,"height":11}},{"id":"134a56cf-4f69-4b62-a8a5-87cd8515b177","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":102,"box":{"x":69,"y":339,"width":791,"height":12}},{"id":"f3343344-53f6-47dd-be22-7733bfcaec78","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":102,"box":{"x":68,"y":355,"width":832,"height":11}},{"id":"a4cb6563-5f92-4bef-959e-b95488648700","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":102,"box":{"x":69,"y":370,"width":742,"height":11}},{"id":"37a3fd7f-2886-4856-87cb-ef1976cb7ca7","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":102,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"dd99cc1f-b203-4b88-8818-ad8cb4a1f8e6","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":102,"box":{"x":69,"y":400,"width":840,"height":11}},{"id":"bdd3503d-21ae-482f-9e6e-3bd74e4e781d","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":102,"box":{"x":68,"y":415,"width":809,"height":11}},{"id":"99b94536-21ee-4405-8946-125862dd8033","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":102,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"a97fcf79-daa9-4851-94d1-16c6a9cb80cc","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":102,"box":{"x":69,"y":446,"width":830,"height":11}},{"id":"5a8eee33-3f49-4495-b85c-0f3c3658de44","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":102,"box":{"x":70,"y":460,"width":810,"height":12}},{"id":"5f168e12-d184-4f43-b0fd-3bde56b44bee","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":102,"box":{"x":69,"y":476,"width":804,"height":11}},{"id":"90426d35-2af6-4691-8f81-178ccad63977","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":102,"box":{"x":69,"y":491,"width":669,"height":11}},{"id":"c41c72b0-e701-4c94-8c1b-ed7de247eb6e","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":102,"box":{"x":101,"y":513,"width":754,"height":12}},{"id":"3ec6874a-fb84-4959-bee7-7cad4567a34f","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":102,"box":{"x":69,"y":528,"width":795,"height":12}},{"id":"1fc43f0d-454e-4765-a8dc-50abe7d2a873","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":102,"box":{"x":69,"y":544,"width":812,"height":11}},{"id":"7d51f3bd-92e3-4a0f-9dac-76cd2f569202","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":102,"box":{"x":69,"y":559,"width":788,"height":11}},{"id":"26c11778-46a7-46ac-960e-24777d66f236","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":102,"box":{"x":70,"y":574,"width":361,"height":11}},{"id":"1c93637b-a108-4fbc-adea-a0a5fd6924a2","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":102,"box":{"x":102,"y":597,"width":784,"height":11}},{"id":"739b3e1a-fc35-47a1-bdc5-aba6ce9b629c","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":102,"box":{"x":68,"y":612,"width":813,"height":11}},{"id":"2eaee725-fd69-47cb-b030-cd6157876925","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":102,"box":{"x":68,"y":627,"width":837,"height":11}},{"id":"cb300c07-111a-4fcf-9e9e-e762adefe31e","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":102,"box":{"x":68,"y":642,"width":714,"height":11}},{"id":"aa988ace-47cd-4d4e-b37d-f1038214728a","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":102,"box":{"x":102,"y":665,"width":328,"height":11}},{"id":"4bb5c2db-2281-4132-8832-43be177514ea","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":102,"box":{"x":437,"y":665,"width":407,"height":11}},{"id":"65552125-607d-40e4-911c-974710e2f493","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":102,"box":{"x":69,"y":680,"width":800,"height":11}},{"id":"4f7a7e51-9688-4253-82d0-0a487a6865cd","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":102,"box":{"x":70,"y":695,"width":827,"height":11}},{"id":"833e4119-6502-4da6-99d2-183452be4f0e","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":102,"box":{"x":68,"y":710,"width":826,"height":11}},{"id":"4d964dc4-7b35-46d3-967a-3e56b7dca7df","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":102,"box":{"x":69,"y":725,"width":833,"height":11}},{"id":"e0897e91-5b93-4dfd-b216-bd3501e60d7b","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":102,"box":{"x":70,"y":740,"width":661,"height":11}},{"id":"3ed30676-5ae9-4be5-95b2-2c092e40cf48","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":102,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"28de9b16-e7f9-42fa-b7ca-4f969ecc479c","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":102,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"8d052234-fdf2-4f82-a22a-a334629bb637","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":102,"box":{"x":69,"y":793,"width":838,"height":11}},{"id":"65d04df1-be48-4e65-a26e-a855bf01f062","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":102,"box":{"x":70,"y":808,"width":836,"height":11}},{"id":"42e52061-7112-4868-9f03-8768b16eb3db","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":102,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"b51b49e4-5843-453b-b572-26a78bdc0ffb","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":102,"box":{"x":70,"y":838,"width":792,"height":12}},{"id":"c3b6e75c-4f1e-425e-8c25-20e898a1ecda","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":102,"box":{"x":70,"y":854,"width":820,"height":11}},{"id":"dbcaab88-60b6-406f-8719-4c08794cebb4","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":102,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"7db1fa28-6038-4e07-bb7a-13b00ea79b31","block_type":"box","text":"of principal because of the sequential payments.","page_number":102,"box":{"x":69,"y":884,"width":346,"height":11}},{"id":"87953244-14a9-4592-a65e-8aa21c699cda","block_type":"box","text":"II-55","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"59e1dd1d-c08f-4ece-95e7-7d7319b2dd6f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d5921c18-b5b3-4835-bc57-d2b73f346440","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":103,"box":{"x":102,"y":45,"width":723,"height":11}},{"id":"96a6b2be-c890-45a4-b4ec-7b4371dda1e2","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":103,"box":{"x":69,"y":60,"width":768,"height":11}},{"id":"14787534-7b26-4c85-b72f-34031000c144","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":103,"box":{"x":70,"y":75,"width":800,"height":11}},{"id":"696011f9-fd29-43dc-8199-894e61ec56fe","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":103,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"61b11204-a5f4-424d-b656-90984a36cbc8","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":103,"box":{"x":69,"y":105,"width":793,"height":11}},{"id":"afb9131a-8a3d-4871-888b-24e7ff794127","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":103,"box":{"x":70,"y":120,"width":767,"height":11}},{"id":"6ad34010-2c94-452b-b267-06d8f146953d","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":103,"box":{"x":69,"y":135,"width":838,"height":12}},{"id":"ce31deea-2ce2-4517-82de-f558bce9ed0c","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":103,"box":{"x":69,"y":150,"width":773,"height":12}},{"id":"e14688a6-e4d2-4421-9db2-29fc72469fdb","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":103,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"7fe0d36f-a380-4c10-95bc-4855fa6cc0bb","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":103,"box":{"x":68,"y":181,"width":836,"height":11}},{"id":"474cf3d3-ff51-4ab9-9b96-75578687e31a","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":103,"box":{"x":69,"y":196,"width":795,"height":11}},{"id":"379e9254-5779-420a-af16-9b985e6c2235","block_type":"box","text":"securities of any single such entity.","page_number":103,"box":{"x":69,"y":211,"width":248,"height":11}},{"id":"f1f720f9-e1df-4098-a6c3-53b389e7da3d","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":103,"box":{"x":101,"y":234,"width":807,"height":11}},{"id":"5e97dce8-59b4-4f24-b2ad-d5da5fa835dc","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":103,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"dc2ed39b-617c-4c5e-b93f-b74a6a36bfbe","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":103,"box":{"x":69,"y":264,"width":819,"height":11}},{"id":"e41adf76-c420-4579-84bc-eac83ff371ac","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":103,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"15982d22-4fe8-48b5-bac0-6d0c9d5893e2","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":103,"box":{"x":69,"y":294,"width":835,"height":11}},{"id":"c771d625-0c42-41ed-88f6-16834f5e2380","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":103,"box":{"x":69,"y":309,"width":802,"height":11}},{"id":"ca967074-56fc-4b2c-89a1-37939ad21f60","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":103,"box":{"x":69,"y":324,"width":833,"height":12}},{"id":"8c9d4678-d08d-452b-9b27-59376de0be14","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":103,"box":{"x":69,"y":339,"width":801,"height":12}},{"id":"cc3107c4-bc38-4532-b95f-bc72d3c7b2a0","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":103,"box":{"x":68,"y":355,"width":813,"height":11}},{"id":"e3736020-c79e-4136-9d71-6536dc8eab4f","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":103,"box":{"x":69,"y":370,"width":708,"height":11}},{"id":"706ceef8-3236-4175-b7b6-ded2bef27dc7","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":103,"box":{"x":102,"y":392,"width":742,"height":12}},{"id":"f86dc0d7-299f-4530-bac6-0048828b57a1","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":103,"box":{"x":69,"y":407,"width":784,"height":12}},{"id":"53aa4c73-294d-47f8-9852-013fde00e62b","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":103,"box":{"x":69,"y":423,"width":800,"height":11}},{"id":"2621e947-eeec-493d-a496-9cdccb743180","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":103,"box":{"x":70,"y":438,"width":802,"height":11}},{"id":"803f2c43-ac84-40de-8ccc-94bb756b4ae5","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":103,"box":{"x":69,"y":453,"width":834,"height":11}},{"id":"36bd923c-f920-40e0-8d6a-c198572bb1d6","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":103,"box":{"x":68,"y":468,"width":835,"height":11}},{"id":"3e6888be-0b03-417d-b2a9-8924cfc6fd4c","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":103,"box":{"x":69,"y":483,"width":772,"height":11}},{"id":"55835b8e-93fa-4b38-838a-c92de5097c30","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":103,"box":{"x":70,"y":498,"width":792,"height":11}},{"id":"b8a29e7d-d775-4dca-bd3c-be2c1b1287dc","block_type":"box","text":"classes.","page_number":103,"box":{"x":69,"y":514,"width":57,"height":8}},{"id":"8c1f054a-b098-4d00-b893-d7d00cb8235a","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":103,"box":{"x":101,"y":536,"width":774,"height":11}},{"id":"c12250eb-235c-4ca6-8857-3cea21a7b32d","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":103,"box":{"x":69,"y":551,"width":835,"height":11}},{"id":"e5c0d915-f65b-4254-87d4-759b857a7d48","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":103,"box":{"x":70,"y":566,"width":815,"height":11}},{"id":"0e6743e0-d395-4c52-b92c-4f29df68722b","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":103,"box":{"x":68,"y":581,"width":833,"height":12}},{"id":"50537b73-07ba-4ffb-8b0d-64b7850160e0","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":103,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"bdc6d6dd-ff23-4157-be07-dc61cd708a6a","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":103,"box":{"x":69,"y":612,"width":541,"height":11}},{"id":"95e2200e-128e-4b06-ae42-fa3b50b6925e","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":103,"box":{"x":101,"y":634,"width":265,"height":12}},{"id":"e07aaf66-d3ef-4d9b-8056-20008f0f61e3","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":103,"box":{"x":372,"y":634,"width":523,"height":12}},{"id":"d98854e5-06ec-4878-86f9-4ff322160d1f","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":103,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"7627311c-8f15-44be-a01b-72844c2e6568","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":103,"box":{"x":68,"y":664,"width":835,"height":12}},{"id":"eeef5989-bef0-47fe-9c92-9cd662c2fe7a","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":103,"box":{"x":69,"y":680,"width":824,"height":11}},{"id":"2d102cda-aca3-495d-859a-1ddf66121771","block_type":"box","text":"to a designated benchmark index.","page_number":103,"box":{"x":68,"y":695,"width":241,"height":11}},{"id":"92c43983-cee8-494c-8a5c-671098b214b3","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":103,"box":{"x":101,"y":718,"width":767,"height":11}},{"id":"ad383de5-567f-4c24-9b67-c166a63e0d09","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":103,"box":{"x":70,"y":732,"width":828,"height":12}},{"id":"2b0bac50-e216-4bca-b9ba-441b75a661e0","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":103,"box":{"x":68,"y":748,"width":837,"height":11}},{"id":"362be997-9a2a-459b-b58c-2a48bf8e0831","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":103,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"4e6d3a30-fb43-49f4-8c88-51ec1a0ff59d","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":103,"box":{"x":69,"y":778,"width":676,"height":11}},{"id":"b9fbe8f8-e89d-4966-b33d-e459c3cbe8b9","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":103,"box":{"x":102,"y":801,"width":757,"height":11}},{"id":"fc5c3911-3efa-4472-8158-e0ca4f3d61af","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":103,"box":{"x":70,"y":816,"width":822,"height":11}},{"id":"b4e34a70-6442-466f-ad28-47909e2bc5ee","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":103,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"ebaa7a30-ef9a-4e48-a11d-74c9c8b6469e","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":103,"box":{"x":70,"y":846,"width":782,"height":11}},{"id":"de8d248f-bf06-48e5-b7ec-a03d432a2cd3","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":103,"box":{"x":70,"y":861,"width":838,"height":11}},{"id":"eb8e318b-5248-4643-b94e-41b692a64f0c","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":103,"box":{"x":69,"y":876,"width":544,"height":11}},{"id":"c80b7112-b6d8-46d8-a20f-635fbf0c7f96","block_type":"box","text":"II-56","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69f52a9b-5cb7-4c92-95d1-2648b969bea8","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5742ba46-8f53-41e0-b63d-69af85d914bf","block_type":"box","text":"CMO Residuals.","page_number":104,"box":{"x":102,"y":45,"width":112,"height":9}},{"id":"852577a2-2fb7-4064-8669-64c611ecf203","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":104,"box":{"x":221,"y":45,"width":682,"height":11}},{"id":"12815a04-13b4-4d8f-b6ff-e1fabaf5ce9f","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":104,"box":{"x":70,"y":60,"width":740,"height":11}},{"id":"5fb79fc5-21c7-434a-ba45-f804ac04693e","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":104,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"42eda24e-832f-4749-91d0-3bc2b180c4c1","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":104,"box":{"x":68,"y":90,"width":826,"height":11}},{"id":"91d79c25-ee82-453d-b79d-6388d41c01d5","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses of","page_number":104,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"0ab9564c-8bf4-4e4c-927a-c45f4183e74b","block_type":"box","text":"the issuer. The residual in a CMO structure generally represents the interest in any excess cash flow remaining after","page_number":104,"box":{"x":68,"y":120,"width":832,"height":12}},{"id":"0357ad77-ed13-4302-bf94-356120b07154","block_type":"box","text":"making the foregoing payments. Each payment of such excess cash flow to a holder of the related CMO residual","page_number":104,"box":{"x":69,"y":135,"width":799,"height":12}},{"id":"3cc24c5f-3815-4524-88ad-1a61c5902436","block_type":"box","text":"represents income and/or a return of capital. The amount of residual cash flow resulting from a CMO will depend on,","page_number":104,"box":{"x":69,"y":150,"width":833,"height":12}},{"id":"61d0d4c5-4f71-4618-b8a6-42527eb189a5","block_type":"box","text":"among other things, the characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing","page_number":104,"box":{"x":69,"y":166,"width":809,"height":11}},{"id":"f2ff1302-3737-4bc6-9153-c032d65a7aee","block_type":"box","text":"interest rates, the amount of administrative expenses and the prepayment experience on the mortgage assets. In","page_number":104,"box":{"x":70,"y":181,"width":810,"height":11}},{"id":"69e0692b-dd90-4acd-b4be-9935fb50b77b","block_type":"box","text":"part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the related underlying","page_number":104,"box":{"x":70,"y":196,"width":795,"height":11}},{"id":"beb16776-364c-4523-a4a6-3a45dc1fc2b8","block_type":"box","text":"mortgage assets, in the same manner as an interest-only class of stripped mortgage-related securities. In addition, if","page_number":104,"box":{"x":69,"y":211,"width":838,"height":11}},{"id":"6f311c19-97e2-4bdf-b63f-d92f00bd0ece","block_type":"box","text":"a series of a CMO includes a class that bears interest at an adjustable rate, the yield to maturity on the related CMO","page_number":104,"box":{"x":69,"y":226,"width":833,"height":11}},{"id":"0fe04a01-976f-4792-babb-f9548a6e0ecd","block_type":"box","text":"residual will also be extremely sensitive to changes in the level of the index upon which interest rate adjustments are","page_number":104,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"686790f1-82ec-4f81-85f7-364b23ed7f71","block_type":"box","text":"based. In certain circumstances, a Fund may fail to recoup fully its initial investment in a CMO residual.","page_number":104,"box":{"x":69,"y":256,"width":738,"height":11}},{"id":"72acc30d-a2fb-4b37-aa82-00fb073a0382","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":104,"box":{"x":102,"y":279,"width":758,"height":11}},{"id":"3bdf5510-d7a8-4a2d-b6d8-d3ea686ec7f0","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":104,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"3194d787-ca5f-4950-bdd6-178b133829d3","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":104,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"2a9ab26e-47ef-46b4-b55a-544814e3bce3","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":104,"box":{"x":69,"y":324,"width":825,"height":12}},{"id":"a7e33aab-c19f-463d-8ab9-2f4b475ac5f4","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":104,"box":{"x":68,"y":339,"width":820,"height":12}},{"id":"8e93a1f3-bab2-496f-93b6-1de29a26cad1","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":104,"box":{"x":69,"y":355,"width":650,"height":11}},{"id":"a09b727b-8812-4a12-8b2a-29f8ba04d8ad","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":104,"box":{"x":102,"y":377,"width":267,"height":12}},{"id":"97faddae-1b53-4957-8469-68b1534e51ef","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":104,"box":{"x":375,"y":377,"width":493,"height":12}},{"id":"13153f65-8205-4e56-8f7c-93855f48fa7b","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":104,"box":{"x":70,"y":392,"width":798,"height":12}},{"id":"000821c1-9c90-4c48-b16c-4e5d998a1cfa","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":104,"box":{"x":69,"y":407,"width":826,"height":12}},{"id":"1e39f5d1-9e4d-4f51-a6c5-b47a65afbe28","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":104,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"8daad043-f356-4f74-a5f7-7765c69ea61c","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":104,"box":{"x":70,"y":438,"width":821,"height":11}},{"id":"05a7fc9b-c08c-46b6-b533-b70f415fb81a","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":104,"box":{"x":68,"y":453,"width":826,"height":11}},{"id":"d5709644-e32e-4c8d-973d-33a35a30d25f","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":104,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"286904e8-b61b-4c90-9276-4d0f69722b83","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":104,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"8140fbff-2a0b-4c4a-8cff-e5f0a9858b66","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":104,"box":{"x":68,"y":498,"width":800,"height":11}},{"id":"260ffee2-28f4-4434-8574-030f6bbc60e5","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":104,"box":{"x":69,"y":513,"width":786,"height":12}},{"id":"84ec182b-6169-4b84-af11-66b97d3cea51","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":104,"box":{"x":69,"y":528,"width":823,"height":12}},{"id":"32f6d507-8f7b-4de6-abdc-298c36063b7e","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":104,"box":{"x":69,"y":543,"width":832,"height":12}},{"id":"4ba183d6-b47f-4a73-8bed-e0a9092e22ea","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":104,"box":{"x":70,"y":559,"width":824,"height":11}},{"id":"ca77ed8c-d7cb-44bb-95ea-289d51bebbf2","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":104,"box":{"x":70,"y":574,"width":800,"height":11}},{"id":"47eef8fe-f760-4854-a5a7-0c3c6ab2067d","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":104,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"b3eb263c-d9fc-4782-92bc-3c3bab547bfd","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":104,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"601e7a27-c33e-438b-8a73-aa8605a886c0","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":104,"box":{"x":68,"y":619,"width":802,"height":11}},{"id":"67a66b48-a2d2-4ef6-998a-0b849d6b66cb","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":104,"box":{"x":69,"y":634,"width":805,"height":12}},{"id":"03e98a4e-805a-46a6-86b1-d230d50ea028","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":104,"box":{"x":69,"y":649,"width":814,"height":12}},{"id":"7de8aa07-f574-4d7e-be97-476bb4b41e6e","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":104,"box":{"x":68,"y":664,"width":683,"height":12}},{"id":"4e9cddb0-5448-414c-aa30-b3ce1a193e8c","block_type":"box","text":"Tiered Index Bonds.","page_number":104,"box":{"x":103,"y":687,"width":138,"height":9}},{"id":"c860eeea-db56-4b2a-9be9-6e68a048e160","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":104,"box":{"x":247,"y":687,"width":638,"height":11}},{"id":"0b626c29-b336-46f2-853b-d5ffceb1b6f0","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":104,"box":{"x":70,"y":702,"width":825,"height":12}},{"id":"80bd6a0a-d945-4cc9-8184-377f1d455f8e","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":104,"box":{"x":70,"y":717,"width":827,"height":11}},{"id":"c8825e17-f440-4d2d-8d74-361db6604fbf","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":104,"box":{"x":69,"y":732,"width":738,"height":11}},{"id":"9fd2d0c1-c3ce-42b1-bf6e-435301413f7d","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":104,"box":{"x":69,"y":748,"width":828,"height":11}},{"id":"dcd1216e-74e0-4a02-831e-b5e0e18fdba6","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":104,"box":{"x":70,"y":763,"width":836,"height":11}},{"id":"34301834-6309-4daf-b8e2-35da76afbedb","block_type":"box","text":"that of a fixed-rate bond.","page_number":104,"box":{"x":68,"y":778,"width":174,"height":9}},{"id":"180595ec-3aac-4f44-aa38-8e500dd7ff4a","block_type":"box","text":"TBA Commitments.","page_number":104,"box":{"x":103,"y":801,"width":133,"height":9}},{"id":"93b4947d-f28a-482a-b54f-44c6448aef47","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":104,"box":{"x":243,"y":801,"width":653,"height":11}},{"id":"3b064176-e011-48d2-b3ab-dae1b0d83174","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":104,"box":{"x":69,"y":816,"width":834,"height":11}},{"id":"48e86cab-57de-4fe9-8173-d7087a77957a","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":104,"box":{"x":68,"y":831,"width":825,"height":11}},{"id":"a226c34f-4d7b-4674-a3b0-6747f62afd69","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":104,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"fec992ea-0544-4c13-b24d-53e8b111ae74","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":104,"box":{"x":69,"y":861,"width":833,"height":11}},{"id":"362be864-08dd-4119-9041-e560529cde7a","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":104,"box":{"x":70,"y":876,"width":804,"height":11}},{"id":"65613b01-cbb3-48da-80ef-cdce0bd4d7ab","block_type":"box","text":"II-57","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"246028bd-aac6-4b9c-987b-374f7e16ab05","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ffd0f4e6-cfd0-47d3-a717-a0d02784dcce","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":105,"box":{"x":69,"y":45,"width":779,"height":11}},{"id":"36bd6566-aa49-4397-a5d6-e3c7cb7da3df","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":105,"box":{"x":69,"y":60,"width":810,"height":11}},{"id":"3b0af52f-0aa5-404a-9653-7db73b145e84","block_type":"box","text":"below.","page_number":105,"box":{"x":69,"y":75,"width":43,"height":9}},{"id":"1f186622-24b0-4b21-8267-f5cf637baafb","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":105,"box":{"x":102,"y":98,"width":157,"height":11}},{"id":"bc5525d9-0577-4aab-bcb1-1f6c5a80d88d","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":105,"box":{"x":266,"y":98,"width":634,"height":11}},{"id":"4ad876c4-f138-4a47-a5b5-51acc49813b0","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":105,"box":{"x":70,"y":113,"width":825,"height":11}},{"id":"1681e9de-7e9b-4b58-b119-080d480d4f95","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":105,"box":{"x":69,"y":128,"width":805,"height":11}},{"id":"9e8bf45f-f315-4c97-b8ad-8bd816d5ddcb","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":105,"box":{"x":70,"y":143,"width":817,"height":11}},{"id":"83956acc-77d6-46f1-a50a-d3ce53fa59b3","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":105,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"0b022b4a-fdaf-412d-9255-d3fa4d96b5c1","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":105,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"9e26419e-d735-475a-b450-a71a56c42d3e","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":105,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"045e6bd1-0a44-41c5-ab8e-e342e6d70dbf","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":105,"box":{"x":69,"y":204,"width":833,"height":11}},{"id":"ed5239e0-1041-43dc-afa2-fbf1c12ec349","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":105,"box":{"x":69,"y":218,"width":836,"height":11}},{"id":"49562f0d-5cee-4f03-ba56-eacb236b2f36","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":105,"box":{"x":69,"y":234,"width":607,"height":11}},{"id":"db580e97-ca7d-4155-be09-d1eb4754d4ec","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":105,"box":{"x":102,"y":256,"width":744,"height":12}},{"id":"30ee5f8f-dbfc-4138-a136-3b7a055870b8","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":105,"box":{"x":69,"y":271,"width":796,"height":12}},{"id":"900f0a46-9e98-483c-8aec-bdcfcb8a7954","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":105,"box":{"x":69,"y":286,"width":433,"height":12}},{"id":"b34ee6a9-874f-4347-9a69-c6e1dd631b06","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":105,"box":{"x":102,"y":309,"width":795,"height":11}},{"id":"49b55825-a277-4ce1-8f66-7046fdc0a865","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":105,"box":{"x":70,"y":324,"width":824,"height":12}},{"id":"49a29930-c1de-4e64-8808-89aac788b704","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":105,"box":{"x":69,"y":339,"width":774,"height":12}},{"id":"eb386d79-2f6a-4885-97a9-43c478c9d71f","block_type":"box","text":"securities in the forward transaction.","page_number":105,"box":{"x":69,"y":355,"width":261,"height":9}},{"id":"afc51c7a-88ff-402b-8f35-469d46f4dec0","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":105,"box":{"x":101,"y":377,"width":785,"height":12}},{"id":"08855c46-eeaa-42d0-9d6a-c32cff2bb9fc","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":105,"box":{"x":69,"y":393,"width":812,"height":11}},{"id":"a597cec2-45ae-41fa-873d-2f1e6532caad","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":105,"box":{"x":68,"y":407,"width":824,"height":12}},{"id":"00476feb-2112-4e66-b9ca-f1af4b22a7b1","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":105,"box":{"x":69,"y":423,"width":824,"height":11}},{"id":"2ec3fdd0-2426-439c-a7d5-9cb8510338f8","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":105,"box":{"x":69,"y":438,"width":828,"height":11}},{"id":"813c516c-e836-418a-bec9-3d400db60cdb","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":105,"box":{"x":69,"y":453,"width":430,"height":11}},{"id":"622bfced-1024-4bbf-b9e5-bee43d78ed65","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":105,"box":{"x":102,"y":475,"width":759,"height":12}},{"id":"bd022dfc-7ffd-459f-b4e6-6402beed5059","block_type":"box","text":"securities (e.g., dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":105,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"1a2318ca-1e84-4989-9c46-fa957efd5a7b","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":105,"box":{"x":69,"y":506,"width":813,"height":11}},{"id":"328d4f00-2e2b-40f1-a4af-97d754de05b4","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":105,"box":{"x":70,"y":521,"width":783,"height":11}},{"id":"1544ac48-4d5f-479a-9201-95da695d349c","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":105,"box":{"x":69,"y":536,"width":832,"height":11}},{"id":"25e21d15-085c-4382-aa17-99fefa6803be","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":105,"box":{"x":70,"y":551,"width":830,"height":11}},{"id":"4375df8a-1313-445c-9b1b-820c5cd4f16a","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":105,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"e380cf9e-d4d5-4146-9266-922a9974fd1a","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":105,"box":{"x":70,"y":581,"width":489,"height":11}},{"id":"e2563a19-d854-4f4f-8f77-14b6d7709d58","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":105,"box":{"x":102,"y":604,"width":260,"height":11}},{"id":"c444e211-b55f-44aa-a174-fb85d412222e","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":105,"box":{"x":368,"y":604,"width":473,"height":11}},{"id":"415cc82a-e4d8-4898-8d34-38055f133a90","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":105,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"95fee340-4cd9-473a-b839-970db8c13c79","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":105,"box":{"x":69,"y":634,"width":836,"height":12}},{"id":"3b843605-532b-4c01-a43e-9ff70a401531","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":105,"box":{"x":70,"y":649,"width":760,"height":12}},{"id":"1634e7e7-f876-4cbe-9a75-4f06b1e5421e","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":105,"box":{"x":69,"y":665,"width":832,"height":11}},{"id":"bf3b321a-13a1-4373-8e7f-a73a0edb1702","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":105,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"68c40ba6-55d7-47f5-b757-39145696766d","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":105,"box":{"x":69,"y":695,"width":764,"height":11}},{"id":"2a7b5812-aa61-4998-a5f1-515ac13ffeb6","block_type":"box","text":"Municipal Investments.","page_number":105,"box":{"x":102,"y":718,"width":169,"height":10}},{"id":"10ec5641-e493-4465-b404-883ad7480730","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":105,"box":{"x":102,"y":740,"width":763,"height":11}},{"id":"83b7f776-6bab-4364-8f94-07f33432d515","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":105,"box":{"x":70,"y":755,"width":783,"height":11}},{"id":"0c3b38fd-4aa3-45aa-8d2f-aae16af4247d","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":105,"box":{"x":70,"y":770,"width":833,"height":12}},{"id":"5242df4c-6c96-468d-a784-1506c2ea9221","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":105,"box":{"x":70,"y":785,"width":813,"height":12}},{"id":"6bd65a67-17de-4e73-abe8-58b356074de9","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":105,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"7e9fecff-6045-4d13-b6d1-0bc27748612c","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":105,"box":{"x":69,"y":816,"width":779,"height":11}},{"id":"6ff80cae-0b43-40e3-8f11-bf9c821eae5d","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":105,"box":{"x":70,"y":831,"width":838,"height":11}},{"id":"6ae27aa7-ec8a-4300-bdc5-4f00d9ca0e9b","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":105,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"3bd43a24-9872-4bbb-831f-b8d0c1ec4ec6","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":105,"box":{"x":68,"y":861,"width":834,"height":11}},{"id":"43d05d96-b662-4115-b7ac-37326b948e0c","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":105,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"fd294aab-cd25-426a-b93a-d2eb32183382","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":105,"box":{"x":70,"y":891,"width":807,"height":12}},{"id":"9343dd06-e693-4369-be6f-c6791a5fcb0c","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":105,"box":{"x":69,"y":906,"width":837,"height":12}},{"id":"47eb7eca-0710-42f6-a278-19f6c4af2471","block_type":"box","text":"II-58","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a65ba25-527b-45ff-b414-f7d3979069b9","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca6b63bc-ce6c-413b-b162-12d566c2b939","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":106,"box":{"x":70,"y":45,"width":809,"height":11}},{"id":"316f7750-667b-4782-8f22-02b47e27319f","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":106,"box":{"x":70,"y":60,"width":826,"height":11}},{"id":"a9001848-4d46-4004-9cd9-23c486258f62","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":106,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"16a9854a-7185-410c-b850-63647befd577","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":106,"box":{"x":70,"y":90,"width":800,"height":11}},{"id":"19184aeb-4dea-4922-a8a2-2dd59bc091de","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":106,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"a79284a1-7616-457d-8b16-b3393dca7772","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":106,"box":{"x":69,"y":120,"width":805,"height":11}},{"id":"27bc1362-9a19-405c-8e31-770a3f6168e4","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":106,"box":{"x":70,"y":135,"width":805,"height":11}},{"id":"7c07b2da-dd7d-4274-9557-49de7fd3eb23","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":106,"box":{"x":70,"y":151,"width":721,"height":11}},{"id":"7537ad11-853d-40c6-a086-a64fdc38efb9","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":106,"box":{"x":102,"y":173,"width":495,"height":11}},{"id":"369ee853-8852-4e98-8259-1fa1a9e05908","block_type":"box","text":"The risks and special considerations","page_number":106,"box":{"x":603,"y":173,"width":260,"height":11}},{"id":"883db190-8b5f-4a0a-8dac-6b305ab1c6f7","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":106,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"eaa6a287-49fa-42cf-9819-6c6e38f74c19","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":106,"box":{"x":70,"y":203,"width":810,"height":12}},{"id":"921cdab7-5ef7-426e-bc31-26346c852538","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":106,"box":{"x":70,"y":219,"width":544,"height":11}},{"id":"59f07a23-526e-4139-9353-8c7ff968a20e","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":106,"box":{"x":101,"y":241,"width":799,"height":11}},{"id":"cc35c605-1483-460f-aedb-890be5efb408","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":106,"box":{"x":70,"y":256,"width":829,"height":12}},{"id":"06929428-24e4-4d03-80d0-0161af439d07","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":106,"box":{"x":70,"y":271,"width":814,"height":12}},{"id":"ba2b5061-f786-4a6f-9fe1-1ae7687bcb4b","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":106,"box":{"x":70,"y":286,"width":802,"height":12}},{"id":"c69c3b79-2e89-4994-aab0-a6a7ef889c81","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":106,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"68181f48-1488-4ce3-9334-d35b4f4dedba","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":106,"box":{"x":69,"y":317,"width":761,"height":11}},{"id":"b5413c8c-cd96-4524-a4ec-6c8f0a60247e","block_type":"box","text":"Description of Municipal Bonds.","page_number":106,"box":{"x":102,"y":339,"width":225,"height":11}},{"id":"14c29d31-fe23-482e-9216-60d44d708723","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":106,"box":{"x":102,"y":362,"width":754,"height":11}},{"id":"69816645-d6da-4969-835d-dd0f5a47820c","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":106,"box":{"x":69,"y":377,"width":824,"height":12}},{"id":"fd4a8a32-c2ca-43d2-85ab-2021538a4de8","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":106,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"ee771d0a-60f8-4010-b8a2-26cf2ec34639","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":106,"box":{"x":69,"y":407,"width":776,"height":12}},{"id":"cf1352a2-13ca-443f-8a20-62b0dbc023ee","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":106,"box":{"x":68,"y":423,"width":822,"height":11}},{"id":"9b4b2eb5-c39f-4950-9fe0-3a467255bcff","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":106,"box":{"x":69,"y":438,"width":810,"height":11}},{"id":"b302265b-8326-4818-ae00-bae797a09141","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":106,"box":{"x":69,"y":453,"width":808,"height":11}},{"id":"249725da-75a7-4664-8875-a6ebedef728c","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":106,"box":{"x":68,"y":468,"width":812,"height":11}},{"id":"96577311-5911-4253-b1b1-5a0c640c337c","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":106,"box":{"x":70,"y":483,"width":792,"height":11}},{"id":"dc9dd7c9-24a8-48d6-a173-82ff06c5030f","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":106,"box":{"x":68,"y":498,"width":835,"height":11}},{"id":"f98ec81f-cc6f-469c-a02b-8514768c91a7","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":106,"box":{"x":68,"y":513,"width":840,"height":12}},{"id":"ae1c806e-1739-4a66-8dd5-cff95a2c9a48","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":106,"box":{"x":69,"y":529,"width":838,"height":11}},{"id":"e48c6a00-ea6a-44d2-b159-bbea31837f18","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":106,"box":{"x":69,"y":544,"width":401,"height":11}},{"id":"1c404ad8-1f14-4927-8a34-0c4870475330","block_type":"box","text":"General Obligation Bonds.","page_number":106,"box":{"x":102,"y":566,"width":184,"height":11}},{"id":"3653020c-deb7-4001-bdfa-3e291c15376f","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":106,"box":{"x":292,"y":566,"width":613,"height":11}},{"id":"b8804e41-e094-4958-8be5-19182310599f","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":106,"box":{"x":68,"y":581,"width":816,"height":12}},{"id":"c77f1d78-2d5e-46db-adda-9f8349cf9bba","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":106,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"8c4eee86-9bec-4ec1-a1be-864af7483d85","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":106,"box":{"x":70,"y":612,"width":786,"height":11}},{"id":"20e5807d-b246-49a9-a567-d35f9a1a1009","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":106,"box":{"x":70,"y":627,"width":835,"height":11}},{"id":"e9a4df14-b84e-4676-9f37-062025db8f7b","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":106,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"eb67fd65-5e48-4849-86a5-a808463ef086","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":106,"box":{"x":69,"y":657,"width":782,"height":11}},{"id":"9a1f79dc-eb93-400b-99b6-f4ec165e0368","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":106,"box":{"x":68,"y":672,"width":791,"height":11}},{"id":"5a6233e3-f538-4dc6-8ed4-03be69eeb17c","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":106,"box":{"x":69,"y":687,"width":630,"height":11}},{"id":"3be1c623-af73-41da-b591-da30c4fe77bc","block_type":"box","text":"Revenue Bonds.","page_number":106,"box":{"x":102,"y":710,"width":114,"height":9}},{"id":"cb05d051-ff0d-4d64-8f2d-9942e5546478","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":106,"box":{"x":223,"y":710,"width":676,"height":11}},{"id":"d15b835f-a902-4f2a-8c57-c4d1c6797ca2","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":106,"box":{"x":68,"y":725,"width":791,"height":11}},{"id":"35a0bb88-52d5-44d0-a744-968f26aa4e2d","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":106,"box":{"x":70,"y":740,"width":824,"height":11}},{"id":"6a7f64b9-db50-4df1-aa3b-8767b048094e","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":106,"box":{"x":69,"y":755,"width":798,"height":11}},{"id":"c5a88b1c-b78e-4682-9946-60e3e517479a","block_type":"box","text":"viability of such facility or such revenue source.","page_number":106,"box":{"x":68,"y":770,"width":336,"height":11}},{"id":"cadc5c30-1064-4d28-a261-b6f9414b1428","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":106,"box":{"x":102,"y":793,"width":801,"height":11}},{"id":"997be4e6-a6c9-4858-ad9c-ffc383e44359","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":106,"box":{"x":70,"y":808,"width":800,"height":11}},{"id":"9d3792f0-edbe-4588-b367-dff50b8354be","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":106,"box":{"x":70,"y":823,"width":810,"height":12}},{"id":"4a84cc6b-a489-4bff-8651-7a3e97ad1b38","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":106,"box":{"x":69,"y":838,"width":830,"height":12}},{"id":"dd73df70-b2c9-4703-a4be-cb7c915e5783","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":106,"box":{"x":70,"y":853,"width":828,"height":12}},{"id":"f20aca78-9d5c-40fe-bbf4-87a12cc37bde","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":106,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"acd4fbcf-344b-4fd6-9edc-a783e606f353","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":106,"box":{"x":68,"y":884,"width":830,"height":11}},{"id":"6d17af7a-eb7d-4ba2-ab1e-9eb8c8285c21","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":106,"box":{"x":68,"y":899,"width":457,"height":11}},{"id":"00217714-7a7c-48ea-87a0-db1674cc8de3","block_type":"box","text":"II-59","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bed0849f-70a4-4753-a386-1b04a0d0452c","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9fc23e15-a629-42cc-af6b-63ca6b9063c0","block_type":"box","text":"PABs.","page_number":107,"box":{"x":102,"y":45,"width":38,"height":9}},{"id":"2ed8a58f-f78d-4d81-90d1-a3841d6a9502","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":107,"box":{"x":147,"y":45,"width":730,"height":11}},{"id":"ad429979-4eeb-467b-b564-f949666b9f16","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":107,"box":{"x":70,"y":60,"width":755,"height":11}},{"id":"c9ff4a81-88c4-4f92-bb64-55b44d98e81a","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":107,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"803105b6-e43c-4ee4-8d6a-e7cb8b3b34d5","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":107,"box":{"x":69,"y":90,"width":793,"height":11}},{"id":"6e3b2971-cf2f-46b3-a343-12d8212bf629","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":107,"box":{"x":70,"y":105,"width":840,"height":11}},{"id":"f37646e0-05b1-4a2a-95e3-1dbef7f2c718","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":107,"box":{"x":69,"y":120,"width":789,"height":12}},{"id":"edeb311c-7dd6-43a9-9155-b46d2a920769","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":107,"box":{"x":69,"y":135,"width":832,"height":11}},{"id":"c6828f4b-64de-4938-9c33-c3f3ed15f687","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":107,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"b71d776e-fe99-40f2-96c0-9f8a59e2956b","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":107,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"7aa2a76d-72dc-4180-a85f-28291efe4133","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":107,"box":{"x":68,"y":181,"width":816,"height":11}},{"id":"f81c8e47-84fc-4970-9130-d98f306e85bf","block_type":"box","text":"the particular facility being financed.","page_number":107,"box":{"x":68,"y":196,"width":258,"height":11}},{"id":"d9dcdfea-5973-49e7-89ad-d0db1cc384d9","block_type":"box","text":"Moral Obligation Bonds.","page_number":107,"box":{"x":102,"y":219,"width":169,"height":11}},{"id":"7662f06b-a1bc-4abb-bca6-38290f8e7d98","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":107,"box":{"x":278,"y":218,"width":628,"height":12}},{"id":"16bf2c53-f6e0-4f94-9c1f-f35884113964","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":107,"box":{"x":70,"y":234,"width":809,"height":11}},{"id":"aa4d6a80-f38a-421f-b7c0-4e3641df083d","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":107,"box":{"x":69,"y":249,"width":816,"height":11}},{"id":"82816bae-5cfb-426a-b772-616f4b434f02","block_type":"box","text":"that issued the bonds.","page_number":107,"box":{"x":68,"y":264,"width":160,"height":9}},{"id":"11157f0a-42a9-4c80-b291-981bc82d9430","block_type":"box","text":"Municipal Notes.","page_number":107,"box":{"x":102,"y":287,"width":118,"height":10}},{"id":"12d61193-a5ee-40a1-ab74-b46d10aa94e4","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":107,"box":{"x":227,"y":286,"width":683,"height":12}},{"id":"18ed0d6b-e340-4a4f-b7b0-19627938fe9c","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":107,"box":{"x":70,"y":302,"width":807,"height":11}},{"id":"53a122a9-d794-41d4-9587-11b9ec69081a","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":107,"box":{"x":69,"y":317,"width":739,"height":11}},{"id":"f5a35820-e9a2-456d-b80b-1605c1365157","block_type":"box","text":"Municipal Commercial Paper.","page_number":107,"box":{"x":102,"y":340,"width":205,"height":10}},{"id":"996411f4-4406-4d5b-b082-fb91b43602b8","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":107,"box":{"x":314,"y":340,"width":586,"height":11}},{"id":"ca982a32-ba62-4d79-ac0c-686a601dda6d","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":107,"box":{"x":68,"y":355,"width":767,"height":11}},{"id":"70d0cfab-5b26-4556-a134-680100780d58","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":107,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"eda9a017-0f3a-42dc-b5cc-3604e3d2c5f6","block_type":"box","text":"Municipal Lease Obligations.","page_number":107,"box":{"x":102,"y":392,"width":203,"height":12}},{"id":"2da34135-62a0-4322-941e-0ceef3e16524","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":107,"box":{"x":311,"y":392,"width":566,"height":12}},{"id":"6ba39733-73f0-4137-a443-faea343b882f","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":107,"box":{"x":70,"y":407,"width":791,"height":12}},{"id":"92e9b70a-9733-460a-bf36-8d6f74d8d1fd","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":107,"box":{"x":69,"y":423,"width":840,"height":11}},{"id":"626b17b7-e52c-49c2-81ca-12b09504d8aa","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":107,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"60758b5d-d4e5-4975-b629-2fa0fba796a5","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":107,"box":{"x":68,"y":453,"width":809,"height":11}},{"id":"33daaa2b-eb96-486e-8f60-84993d7bff30","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":107,"box":{"x":70,"y":468,"width":820,"height":11}},{"id":"4b6a0910-3fa9-46b4-9d31-64ee0f5cc799","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":107,"box":{"x":70,"y":483,"width":808,"height":11}},{"id":"be7deb73-7d4f-406c-a9cc-8ac37da3627b","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":107,"box":{"x":70,"y":498,"width":809,"height":11}},{"id":"3020ca76-a728-4fdb-a614-12c789a6f2be","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":107,"box":{"x":68,"y":513,"width":795,"height":12}},{"id":"2fbf0d80-2602-4818-8b7a-158b6cd6c3e5","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":107,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"8d3e64c8-cbcc-47e1-af23-440e42c47919","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":107,"box":{"x":69,"y":543,"width":810,"height":12}},{"id":"49fc6db7-56f1-43f9-8bdb-4cef119f0672","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":107,"box":{"x":69,"y":559,"width":817,"height":11}},{"id":"79f9ddfd-1383-45fd-975e-82770d077cf6","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":107,"box":{"x":69,"y":574,"width":572,"height":11}},{"id":"1c6606b0-45ab-4d8f-991c-4081242cee7a","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":107,"box":{"x":101,"y":596,"width":791,"height":12}},{"id":"1070c54a-a8ab-4c9f-a27f-2472f71427b4","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":107,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"8c310f83-f1c1-48f6-b18c-1afb11ee5891","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","page_number":107,"box":{"x":69,"y":627,"width":828,"height":11}},{"id":"95b8f91f-1192-4ec0-b275-0691c6cc08f0","block_type":"box","text":"a reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":107,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"707113f9-f74a-4b0d-a671-8a7478c61745","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":107,"box":{"x":70,"y":657,"width":828,"height":11}},{"id":"0694625f-d213-4370-961c-6975d2f5fda6","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":107,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"c96c8d01-c008-4350-a2ce-c6a64eb33dc0","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":107,"box":{"x":69,"y":687,"width":807,"height":11}},{"id":"7c5227a2-1249-4abd-b1b8-5220c194b7fe","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":107,"box":{"x":68,"y":702,"width":835,"height":12}},{"id":"44588aa1-3e80-4f3f-a277-529aff3234e1","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":107,"box":{"x":69,"y":718,"width":828,"height":11}},{"id":"a4a6fbaa-880b-4390-934b-6fa4cc009e4d","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":107,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"816a9b35-07a7-4d80-95fc-f0472e61a34d","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":107,"box":{"x":68,"y":748,"width":793,"height":11}},{"id":"940ddb3d-f4ab-48cb-9ef9-1d653c871aac","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":107,"box":{"x":70,"y":763,"width":810,"height":11}},{"id":"974d12e7-2fb9-45c9-9b22-012dcc4b667b","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":107,"box":{"x":70,"y":778,"width":820,"height":11}},{"id":"e17a3dea-1f95-4c00-8bf6-0739c70d5709","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":107,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"ef86068d-30b3-4130-9e00-07609c7f1199","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":107,"box":{"x":69,"y":808,"width":574,"height":11}},{"id":"bc2f3504-0625-4619-b9e9-fc91ad6c0255","block_type":"box","text":"Tender Option Bonds.","page_number":107,"box":{"x":103,"y":831,"width":150,"height":11}},{"id":"8d202262-5973-42f6-bee6-86084c60a37b","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":107,"box":{"x":260,"y":831,"width":613,"height":11}},{"id":"d8df57b8-e4b9-49c8-8a08-bec80c86da80","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":107,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"0fc13f61-cf09-4764-8576-618f65f789be","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":107,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"d3a80c20-022b-42ec-a1ae-4949a615b24d","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":107,"box":{"x":68,"y":876,"width":807,"height":11}},{"id":"bb954b27-b23b-4bf2-a39b-87a67f3c0ca6","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":107,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"0e1c91cd-478b-4c01-9449-6bcbd3e5d292","block_type":"box","text":"II-60","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"321f96bd-7eb0-4bff-876f-444e8286f1b5","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f9659d62-c4c7-4262-9ad7-43cdda8e0181","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":108,"box":{"x":68,"y":45,"width":814,"height":11}},{"id":"1e1ca982-d4a2-412a-bf42-5961cb5100a1","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":108,"box":{"x":68,"y":60,"width":598,"height":11}},{"id":"476b8fea-0e9c-44cf-8290-9d67f6d74ee5","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":108,"box":{"x":101,"y":82,"width":751,"height":12}},{"id":"cfcf4e78-f935-42eb-9fcf-97e82fb6f09d","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":108,"box":{"x":70,"y":98,"width":786,"height":11}},{"id":"72292129-8479-44bd-8fe0-8e52831c1967","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":108,"box":{"x":69,"y":113,"width":813,"height":11}},{"id":"14fb445b-2a63-45d2-8a9c-38e5a2bfaa1a","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":108,"box":{"x":68,"y":128,"width":799,"height":11}},{"id":"f0cb0328-a437-4a15-9e22-2566c236750d","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":108,"box":{"x":70,"y":143,"width":830,"height":11}},{"id":"b3c87afc-2065-40e6-a7ad-78993ca63357","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":108,"box":{"x":68,"y":158,"width":828,"height":11}},{"id":"39841d64-4c98-4a5a-a05d-ddac3792b107","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":108,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"43496989-fcfe-4f20-9f40-a222d4ea799d","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":108,"box":{"x":69,"y":188,"width":768,"height":11}},{"id":"d9057f75-e01b-44ea-9ad4-e5d187e21f2b","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":108,"box":{"x":70,"y":203,"width":825,"height":12}},{"id":"306718b3-2660-43c0-b110-601401a4d472","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":108,"box":{"x":69,"y":219,"width":764,"height":11}},{"id":"666d78f9-263c-45d3-af67-5fd697506280","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":108,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"73560c44-5203-4575-86d4-624d0548ebf3","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":108,"box":{"x":68,"y":249,"width":810,"height":11}},{"id":"cad30efe-5155-44e0-9e97-e492da2c5b99","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":108,"box":{"x":68,"y":264,"width":704,"height":11}},{"id":"8630c32a-5995-44cc-907d-8c0e84c9e509","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":108,"box":{"x":102,"y":286,"width":804,"height":12}},{"id":"18ce9235-2501-40ee-bd25-65087ffc62bc","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":108,"box":{"x":70,"y":302,"width":805,"height":11}},{"id":"13c9f611-755d-4040-af19-ddd5ae0e535b","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":108,"box":{"x":69,"y":317,"width":752,"height":11}},{"id":"40fc1fec-9cab-4a35-9e71-786e4a9690cb","block_type":"box","text":"participation in the TOB Trust.","page_number":108,"box":{"x":70,"y":332,"width":211,"height":11}},{"id":"4608540d-9b8e-4767-9b36-6db0d1f120d1","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":108,"box":{"x":101,"y":355,"width":802,"height":11}},{"id":"1c4340df-1e82-4783-9fe2-e5131e93bedc","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":108,"box":{"x":70,"y":370,"width":753,"height":11}},{"id":"c8583e56-f181-4bd9-b125-c7dd57ab622e","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":108,"box":{"x":69,"y":385,"width":829,"height":11}},{"id":"a52d76a3-1e3e-4d52-b7fc-85b0fa565ec3","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":108,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"755fb493-45d5-4500-927f-fa70b73335a1","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":108,"box":{"x":69,"y":415,"width":802,"height":11}},{"id":"88a5db46-f51c-426b-a929-617ea7c5b476","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":108,"box":{"x":70,"y":430,"width":357,"height":11}},{"id":"479d0b1e-1e40-402b-907b-3c3010a4866d","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":108,"box":{"x":101,"y":453,"width":807,"height":11}},{"id":"4d929bed-730e-4690-a58e-15ac31ad5448","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":108,"box":{"x":69,"y":468,"width":810,"height":11}},{"id":"5c3e0953-0fd7-41e8-9b67-03e15cf5a3bf","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":108,"box":{"x":69,"y":483,"width":825,"height":11}},{"id":"498e15b5-019e-48ee-9310-74b0eeb630de","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":108,"box":{"x":69,"y":498,"width":834,"height":11}},{"id":"13743332-6ae7-4a8b-9dca-b63837d0b40c","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":108,"box":{"x":70,"y":513,"width":797,"height":12}},{"id":"6803621a-48fa-4867-b187-67f925b62e84","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":108,"box":{"x":70,"y":528,"width":809,"height":12}},{"id":"f02e1b58-e562-4c67-ab19-e36d7e9259a8","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":108,"box":{"x":69,"y":543,"width":820,"height":11}},{"id":"879103e8-adad-472c-a397-1ebb0ed058a8","block_type":"box","text":"issues.","page_number":108,"box":{"x":70,"y":559,"width":49,"height":9}},{"id":"0fe7182a-f6a5-4102-9ed6-5d4636c3e5eb","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":108,"box":{"x":101,"y":581,"width":795,"height":12}},{"id":"e2cc1d6d-f86b-4ae8-87ea-f7fa03b3b27d","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":108,"box":{"x":68,"y":596,"width":833,"height":12}},{"id":"9cabd01a-6143-4256-a5be-ad05e52e549a","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":108,"box":{"x":70,"y":612,"width":293,"height":11}},{"id":"f3dd0f66-0d9d-4f9e-adae-fbbaa2751de5","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":108,"box":{"x":101,"y":634,"width":802,"height":11}},{"id":"7ad94ed1-cb37-4ed8-a7d3-4d6681fc5949","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":108,"box":{"x":69,"y":649,"width":788,"height":12}},{"id":"8af6690e-83a5-4eb1-86b1-4bb64f3439b0","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":108,"box":{"x":70,"y":664,"width":836,"height":12}},{"id":"e78d32c6-e813-4f83-b46c-0790d6a5ba78","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":108,"box":{"x":70,"y":680,"width":819,"height":11}},{"id":"8b09f98f-ece7-4521-8f9a-6a0eab8108b8","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":108,"box":{"x":70,"y":695,"width":833,"height":11}},{"id":"dac0bbd1-eb97-443c-a9d4-8ea037816d08","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":108,"box":{"x":68,"y":710,"width":834,"height":11}},{"id":"0722d194-a9ef-49f3-833c-cc9880c46bd2","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":108,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"9ed1ed05-3867-42ad-92ae-93eecacec62d","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":108,"box":{"x":68,"y":740,"width":831,"height":11}},{"id":"fafba273-3421-4af6-ab71-286d06d01622","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":108,"box":{"x":70,"y":755,"width":823,"height":11}},{"id":"d6005a9f-7c20-44b0-a535-815ee98f43a5","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":108,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"a5539a4b-12b3-49e4-afad-8c22bafaeda2","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (i.e., the Fund). In contrast, in the","page_number":108,"box":{"x":68,"y":785,"width":825,"height":11}},{"id":"9318d931-5d5f-43f8-a7e6-74605d3d6caa","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":108,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"39e60dd2-55e8-4b46-ab7a-876434913c83","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":108,"box":{"x":69,"y":816,"width":479,"height":11}},{"id":"2cbd36cd-c5b3-455b-8124-fbf53e057492","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":108,"box":{"x":101,"y":838,"width":797,"height":11}},{"id":"83bf63b0-dc78-4c01-be41-0fa84dbfc6f8","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":108,"box":{"x":69,"y":853,"width":815,"height":12}},{"id":"193d143a-849b-4560-ab8e-ef7115e6c2e4","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":108,"box":{"x":68,"y":869,"width":828,"height":11}},{"id":"015cb3ce-78aa-4387-89c9-c0cc72c85267","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":108,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"004dc6f8-c643-4555-b043-357c79d16322","block_type":"box","text":"II-61","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"38968244-1473-4a33-aea8-e20e0ff2cf63","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"240c11f4-b851-47db-a16c-a02d75dfacb7","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":109,"box":{"x":68,"y":45,"width":815,"height":11}},{"id":"5a8791b7-18a5-4dce-ae8e-b0eca37727f2","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":109,"box":{"x":68,"y":60,"width":434,"height":11}},{"id":"b62a9e07-26f7-4b0d-aa48-89db72cbea3b","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":109,"box":{"x":101,"y":83,"width":772,"height":11}},{"id":"25e3ac2f-7a3e-4f84-b2ba-e09dd5aa396c","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":109,"box":{"x":70,"y":98,"width":831,"height":11}},{"id":"44221c36-08ea-4b35-bf06-8b6aa0b2555b","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":109,"box":{"x":69,"y":113,"width":785,"height":11}},{"id":"a980fb4b-686c-45e7-ae0f-4b7a455b10db","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":109,"box":{"x":70,"y":128,"width":831,"height":11}},{"id":"1fb7a69c-d707-474a-bb22-f9ebba19e9cd","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":109,"box":{"x":69,"y":143,"width":836,"height":11}},{"id":"4415a2c5-f095-488d-b01d-8a6fe42c0ff8","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":109,"box":{"x":68,"y":158,"width":836,"height":11}},{"id":"5a6a4a2c-2ab6-4dca-842e-fb864bf76a65","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":109,"box":{"x":68,"y":173,"width":788,"height":11}},{"id":"aa160475-b400-4934-9538-5d1543d021bc","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":109,"box":{"x":70,"y":188,"width":823,"height":11}},{"id":"f76b2fad-6b44-4a4e-a919-22f745decd7a","block_type":"box","text":"Trust.","page_number":109,"box":{"x":68,"y":204,"width":39,"height":8}},{"id":"fafebf8e-fe3c-4131-851f-8f691f9545aa","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":109,"box":{"x":102,"y":226,"width":784,"height":11}},{"id":"31ecf5ce-eb72-4e0f-be81-c1111184edf1","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":109,"box":{"x":70,"y":241,"width":830,"height":11}},{"id":"fa0f9697-da03-4790-870e-bd6f3739c7c9","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":109,"box":{"x":69,"y":256,"width":806,"height":12}},{"id":"0cbfd519-4f62-4235-9b00-aefe23cb4267","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":109,"box":{"x":70,"y":272,"width":831,"height":11}},{"id":"a657668e-dd31-488e-afac-d5cd37ea9783","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":109,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"f993ff66-01fe-4f8c-a382-2026402320bd","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":109,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"5e0cd65c-f3b9-4c59-851e-239a7d4f1c0d","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":109,"box":{"x":70,"y":317,"width":728,"height":9}},{"id":"1926a67e-7a1d-4e36-8a99-264361adee94","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":109,"box":{"x":102,"y":339,"width":776,"height":12}},{"id":"9a111113-c183-4d97-a31a-80c806a186c2","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":109,"box":{"x":68,"y":355,"width":837,"height":11}},{"id":"dcd9543b-28f0-4aaf-a2e0-d9fd1fdf7c0f","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":109,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"8d94a905-77de-419f-8b8d-ece42ff60747","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":109,"box":{"x":70,"y":385,"width":809,"height":11}},{"id":"a98214e1-b487-4710-ab0b-df1521e1044e","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":109,"box":{"x":68,"y":400,"width":836,"height":11}},{"id":"1fa2fe98-b78e-4582-91e0-06ba3fc7bc37","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":109,"box":{"x":68,"y":415,"width":835,"height":11}},{"id":"33928593-46c3-48da-95b5-0a63189fd1ce","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":109,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"6201ca04-a674-43ad-93bd-7ca6c141ed75","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":109,"box":{"x":69,"y":445,"width":790,"height":11}},{"id":"c8ddc209-7e3a-4b8e-8b33-1a359c96a5af","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":109,"box":{"x":70,"y":460,"width":599,"height":12}},{"id":"ed9845a3-1428-4860-9cc8-85ccbe81c17c","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":109,"box":{"x":102,"y":483,"width":762,"height":11}},{"id":"d0975274-d975-47db-8337-d2be43fe267e","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":109,"box":{"x":69,"y":498,"width":818,"height":11}},{"id":"b0768449-8359-487d-ae9f-c5a0d151ba3c","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":109,"box":{"x":68,"y":513,"width":778,"height":11}},{"id":"f3284969-0c7d-4a1d-b5ef-ec7ee87e37f9","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":109,"box":{"x":69,"y":529,"width":811,"height":11}},{"id":"8b9176f8-3462-4e36-a72d-40864e69c12e","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":109,"box":{"x":69,"y":543,"width":786,"height":12}},{"id":"f436e3b7-51cf-4027-acbe-760aef5a4595","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":109,"box":{"x":70,"y":559,"width":588,"height":11}},{"id":"17508ef3-c85a-41f8-a4b0-8b04e105d3d0","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":109,"box":{"x":102,"y":581,"width":279,"height":11}},{"id":"6dbb388e-fefb-4dc6-b301-678dcfd4e826","block_type":"box","text":"In response to the restrictions imposed by the section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":109,"box":{"x":102,"y":604,"width":799,"height":11}},{"id":"985274cf-1f5f-4b21-86cb-28fa7735ce7d","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":109,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"0b6ecaf9-317b-4a93-9dd6-661017706789","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":109,"box":{"x":69,"y":634,"width":816,"height":12}},{"id":"fda2c92d-e35e-4722-975e-bd5bd078489d","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":109,"box":{"x":69,"y":649,"width":791,"height":11}},{"id":"efa3b53d-f7aa-487a-bcd3-511fd349f8e8","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":109,"box":{"x":69,"y":664,"width":812,"height":12}},{"id":"09315637-c6b1-4736-a201-e8e92872afa3","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":109,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"8477a92a-1a6c-45c3-9965-735cf45bb46c","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":109,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"0634fe08-e3c9-489a-9479-56bfe419d447","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":109,"box":{"x":68,"y":710,"width":803,"height":11}},{"id":"bffa2874-e575-42a0-a7cd-5a1ffd4b2cf1","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":109,"box":{"x":69,"y":725,"width":665,"height":11}},{"id":"24de89b4-edb8-42a1-a5d1-be276fe9acba","block_type":"box","text":"Under the new structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees,","page_number":109,"box":{"x":102,"y":748,"width":791,"height":11}},{"id":"76238e73-ff08-429f-9921-5681004f4e36","block_type":"box","text":"and remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":109,"box":{"x":69,"y":763,"width":815,"height":11}},{"id":"c615fc62-cc0a-4c7b-95ae-8405d75e510b","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":109,"box":{"x":68,"y":778,"width":808,"height":11}},{"id":"972a5174-7115-4f08-a59a-cf4b0bf6cdee","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":109,"box":{"x":70,"y":793,"width":830,"height":11}},{"id":"648072d7-b648-486a-8d22-a9a7c1166eab","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (i.e., the Fund). Tendered TOB Floaters continue to be","page_number":109,"box":{"x":68,"y":808,"width":819,"height":11}},{"id":"1cee90b5-e690-4927-a1c2-c592bf40d29a","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":109,"box":{"x":69,"y":823,"width":836,"height":12}},{"id":"2c4a47bb-a2c4-4c41-9626-21ee31798bbb","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":109,"box":{"x":68,"y":838,"width":816,"height":12}},{"id":"4b265e83-c766-4aba-a1c6-ec939b75723f","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":109,"box":{"x":68,"y":853,"width":835,"height":11}},{"id":"a121d9b3-9807-4c96-ac0f-e8206c625bc9","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":109,"box":{"x":69,"y":869,"width":822,"height":11}},{"id":"13705a4d-2110-4333-afe9-27e2cac5941c","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":109,"box":{"x":69,"y":884,"width":777,"height":11}},{"id":"67121b3e-a85c-4f34-9a27-81843875befe","block_type":"box","text":"II-62","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"990261a3-d1a3-4e72-972b-03d8e6202fdf","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0525b232-7721-41a5-aaba-d7a8f560c2da","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":110,"box":{"x":69,"y":45,"width":800,"height":11}},{"id":"714cf5d2-b09d-4b3f-917e-f532d8cc0050","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":110,"box":{"x":69,"y":60,"width":696,"height":11}},{"id":"c28f57f3-5e5b-4c57-a250-24b653de2c1f","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":110,"box":{"x":102,"y":82,"width":745,"height":12}},{"id":"1d2316c2-4295-410a-953a-350f1899f0d8","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":110,"box":{"x":69,"y":98,"width":797,"height":11}},{"id":"923c506d-a4ed-464d-81be-ec1fa82f3b13","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":110,"box":{"x":69,"y":113,"width":803,"height":10}},{"id":"9208b8f0-bd1c-4488-ab0c-655eed0191b3","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":110,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"31668b51-9d82-4032-bb7b-4b60edfc760f","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":110,"box":{"x":101,"y":150,"width":801,"height":12}},{"id":"b4b60781-5061-40ad-a066-d2ab3e391a14","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":110,"box":{"x":69,"y":166,"width":838,"height":11}},{"id":"0a81585a-8aa7-4fc1-9459-4c6a017d2ea8","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":110,"box":{"x":68,"y":181,"width":787,"height":11}},{"id":"b896f4cb-5448-4d66-8f1d-672a1312b91d","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":110,"box":{"x":70,"y":196,"width":791,"height":11}},{"id":"50d17bc3-d4df-4a04-b152-bb2f7967a09d","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":110,"box":{"x":70,"y":211,"width":466,"height":9}},{"id":"212172cd-5d3d-43b6-8d2e-b0b804cffdb8","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":110,"box":{"x":101,"y":234,"width":726,"height":11}},{"id":"c9eb2946-0c3d-44c2-8450-aae01a3d03e1","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":110,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"756ec2ff-b1fe-476c-a0b1-1fe402ccaa80","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":110,"box":{"x":68,"y":264,"width":799,"height":11}},{"id":"1025e032-ee96-4fea-a349-038f111be9e3","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":110,"box":{"x":69,"y":279,"width":807,"height":11}},{"id":"302a7695-0128-4c03-9594-14f9cf4919a4","block_type":"box","text":"market is not yet certain.","page_number":110,"box":{"x":69,"y":294,"width":178,"height":11}},{"id":"9229012c-ce60-41f0-b087-9814000d7cd4","block_type":"box","text":"Yields.","page_number":110,"box":{"x":103,"y":317,"width":45,"height":9}},{"id":"b11d7c69-9197-40db-be2e-f76f9868ae16","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":110,"box":{"x":154,"y":317,"width":730,"height":11}},{"id":"8b4ce0a2-1cfb-4d46-84da-ab21eb1ef6e9","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":110,"box":{"x":69,"y":332,"width":788,"height":11}},{"id":"b89d26c4-e8eb-45d3-bbbc-12a1749bc49e","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":110,"box":{"x":70,"y":347,"width":787,"height":11}},{"id":"eaec7077-3978-4180-b908-8d1236d40e4b","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":110,"box":{"x":69,"y":362,"width":838,"height":11}},{"id":"6e4ef7bc-86e7-487c-8301-08c41d86b55b","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":110,"box":{"x":68,"y":377,"width":794,"height":12}},{"id":"59563445-4e5d-4798-991d-b4f869ec9fc3","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":110,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"2de2ce81-9bda-47f9-a457-265a0090581c","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":110,"box":{"x":68,"y":407,"width":806,"height":12}},{"id":"3807b750-4fd1-4efc-b4b6-b83645731e5c","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":110,"box":{"x":70,"y":423,"width":823,"height":11}},{"id":"c125cff5-c512-44f3-ab95-000d28cd37d7","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":110,"box":{"x":69,"y":438,"width":790,"height":11}},{"id":"c38a26cf-5032-410d-ab3c-a6682479f208","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":110,"box":{"x":103,"y":460,"width":323,"height":12}},{"id":"aaa2f703-2ca6-451d-a0d6-9efba12801b9","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":110,"box":{"x":432,"y":460,"width":422,"height":12}},{"id":"de399c0b-d328-40af-bbdc-9124fa979557","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":110,"box":{"x":68,"y":475,"width":830,"height":12}},{"id":"c316e3d8-236e-45bc-86be-a1a086b81802","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":110,"box":{"x":69,"y":491,"width":759,"height":11}},{"id":"caad4042-d703-4b9f-a623-8d6a83983072","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":110,"box":{"x":101,"y":513,"width":798,"height":11}},{"id":"38debc4f-7f04-41e8-ad2f-142249095e6e","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":110,"box":{"x":68,"y":528,"width":815,"height":12}},{"id":"3ad987c7-a95e-4a22-904b-a37463bf8af4","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":110,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"ece25994-ea74-42dc-ae8d-b547589d0040","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":110,"box":{"x":68,"y":559,"width":791,"height":11}},{"id":"79b7a4d7-5fee-4114-b924-efe3fb2139c5","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":110,"box":{"x":70,"y":574,"width":264,"height":11}},{"id":"2387f259-09a7-4217-bdec-7a0c87b75994","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":110,"box":{"x":102,"y":596,"width":791,"height":12}},{"id":"73c2a701-c585-4518-b25e-93deab806bb8","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":110,"box":{"x":70,"y":612,"width":833,"height":11}},{"id":"dfaf427f-bfc0-4f9c-994e-97ba8688042c","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":110,"box":{"x":69,"y":627,"width":808,"height":11}},{"id":"fdadcf45-03a3-4443-8c3a-1002b791c218","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":110,"box":{"x":70,"y":642,"width":608,"height":11}},{"id":"cae38bd6-c76c-4152-8444-496170688568","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":110,"box":{"x":103,"y":665,"width":465,"height":10}},{"id":"a72e6a98-75de-4456-aa46-17233cff38d4","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":110,"box":{"x":574,"y":664,"width":318,"height":11}},{"id":"120749d4-cb0d-40e7-8e0f-18ac78f0fd8e","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":110,"box":{"x":69,"y":680,"width":803,"height":11}},{"id":"afc38d99-d4f4-471a-8b84-308e0212ab6e","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":110,"box":{"x":68,"y":695,"width":825,"height":11}},{"id":"8b212a69-0c81-47f3-8079-e903b131eefb","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":110,"box":{"x":68,"y":710,"width":840,"height":11}},{"id":"9e3fb2aa-6223-4f93-a12f-68e194be3cc3","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":110,"box":{"x":70,"y":725,"width":815,"height":11}},{"id":"5dc79a81-391a-4c46-ba73-48aebb069a02","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":110,"box":{"x":68,"y":740,"width":836,"height":11}},{"id":"5a4d4dbb-adc1-4c9d-b07c-561043c197b5","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":110,"box":{"x":69,"y":755,"width":796,"height":11}},{"id":"e4704b81-2850-4a57-9458-faab6ceb2a5c","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":110,"box":{"x":68,"y":770,"width":816,"height":11}},{"id":"ab53f68f-dd70-436b-915d-5ff78b753807","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":110,"box":{"x":101,"y":793,"width":756,"height":11}},{"id":"a4421206-7560-4a94-93bc-566b712079a1","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":110,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"b1ab5bb4-9466-4c1b-a1a9-9a9ad05a9697","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":110,"box":{"x":69,"y":823,"width":808,"height":12}},{"id":"0e3efd41-55f8-4e16-96cd-34f48d2a6485","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":110,"box":{"x":101,"y":846,"width":753,"height":11}},{"id":"8324a71a-0f4d-46d3-a55c-31aac5d0f559","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":110,"box":{"x":69,"y":861,"width":764,"height":11}},{"id":"1b829827-d979-4c77-8d94-b47ca543421d","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":110,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"867b124e-ac66-4b16-95f1-92c401f752d9","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":110,"box":{"x":69,"y":891,"width":774,"height":12}},{"id":"16c28380-ecac-48cc-a5c3-94c47b9a7d77","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":110,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"2b522caf-6296-4c46-b351-c7d6de721879","block_type":"box","text":"II-63","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46bbcc28-a26b-4d74-b813-f0f869c8cccb","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6ce529a-f5dc-4737-8109-749ff50e4467","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":111,"box":{"x":69,"y":45,"width":788,"height":11}},{"id":"f6cd247d-9a25-47df-be43-f418789a7072","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":111,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"4799fa24-227c-4eb0-a40e-b3060d7719fa","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":111,"box":{"x":69,"y":75,"width":799,"height":11}},{"id":"fb733bb7-4a2c-453d-b2e0-518cf324da85","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":111,"box":{"x":69,"y":90,"width":772,"height":11}},{"id":"95c38bcd-cbd9-478a-b74f-a36d2a2ff5d0","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":111,"box":{"x":69,"y":105,"width":782,"height":11}},{"id":"26691fc6-74cd-4e48-a6a9-879fe062a232","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":111,"box":{"x":69,"y":120,"width":806,"height":11}},{"id":"21620300-eb21-4cff-a5b0-f7d83b0dd687","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":111,"box":{"x":69,"y":135,"width":823,"height":12}},{"id":"ff7db185-fffa-4434-a6b1-ff80981c713a","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":111,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"6fa10234-0f77-495f-a326-235c9ba434f5","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":111,"box":{"x":70,"y":166,"width":839,"height":11}},{"id":"4e558a6e-e772-45f9-858c-89086058b84f","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":111,"box":{"x":68,"y":181,"width":693,"height":11}},{"id":"20f7e9f6-18c1-4183-bd7e-84ec400d7114","block_type":"box","text":"Call Rights.","page_number":111,"box":{"x":102,"y":203,"width":79,"height":12}},{"id":"d1e2527a-2bfd-4ef4-8ce8-5a3d4bc5c221","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":111,"box":{"x":187,"y":203,"width":708,"height":12}},{"id":"6f344c42-5612-4d93-b7d9-e6c7d1318d9c","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":111,"box":{"x":68,"y":218,"width":790,"height":12}},{"id":"741edbf1-a8dc-479b-84f1-611b5dc6fc3b","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":111,"box":{"x":69,"y":234,"width":827,"height":11}},{"id":"338f4a28-4674-4746-af0d-849cac1671e4","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":111,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"9fe9138a-838a-449a-9ee4-c6e1717157f7","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":111,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"c91f3f6a-6f6e-439c-b0c2-786f5b8dbd16","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":111,"box":{"x":69,"y":279,"width":393,"height":11}},{"id":"c2343fc6-cfd4-47c6-88ea-8ab362da91aa","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":111,"box":{"x":102,"y":302,"width":307,"height":11}},{"id":"32054d39-611c-4c80-a6f4-62e91bc42baa","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":111,"box":{"x":417,"y":302,"width":411,"height":11}},{"id":"041db76a-efcd-4a3d-86a3-d3ade3e99bf9","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":111,"box":{"x":68,"y":317,"width":835,"height":11}},{"id":"684a4359-df2c-40b4-8a91-37118d4dc91e","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":111,"box":{"x":70,"y":332,"width":781,"height":11}},{"id":"561fcbda-0d72-42f8-96e9-44563e68ab43","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":111,"box":{"x":70,"y":347,"width":808,"height":11}},{"id":"0e80dc39-ff70-41b2-a06e-b1a55ef2e33a","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":111,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"6d18dcf5-ab8e-40dc-aa73-8846b0349ecb","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":111,"box":{"x":70,"y":377,"width":832,"height":12}},{"id":"cf8ceb01-e7ea-4f29-b454-94dde2ea8afe","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":111,"box":{"x":68,"y":393,"width":817,"height":11}},{"id":"f8367541-bc41-4b9b-975b-fec3de27a12d","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":111,"box":{"x":70,"y":407,"width":797,"height":12}},{"id":"aacac433-c9ce-45ed-b96e-0796cddf9ded","block_type":"box","text":"during periods of steep interest rate yield curves (i.e., wide differences between short-term and long-term interest","page_number":111,"box":{"x":69,"y":423,"width":813,"height":11}},{"id":"c84c0c86-89b9-4739-a3c8-5ec5405315ff","block_type":"box","text":"rates).","page_number":111,"box":{"x":69,"y":438,"width":44,"height":11}},{"id":"91a99a0a-37b6-4f41-a425-0c041f83bf90","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":111,"box":{"x":101,"y":460,"width":807,"height":12}},{"id":"9869230b-b0fb-4e16-9bb9-b7755817f0f8","block_type":"box","text":"another party their respective commitments to pay or receive interest (e.g., an exchange of fixed rate payments for","page_number":111,"box":{"x":69,"y":475,"width":818,"height":12}},{"id":"755cdcb5-b957-4dae-be48-5b047b2b8e9b","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":111,"box":{"x":68,"y":491,"width":798,"height":11}},{"id":"01e4fc5b-5d87-4062-a48f-aae4eb055516","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":111,"box":{"x":70,"y":506,"width":778,"height":11}},{"id":"04378501-615d-4ea9-9f73-5d04c391ae65","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":111,"box":{"x":69,"y":521,"width":833,"height":11}},{"id":"65231715-e514-4457-ba8d-32bc04ab60eb","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":111,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"b896d3a7-f40c-4190-a42a-42669c7de360","block_type":"box","text":"with the same attributes as the swap (e.g., coupon, maturity, call feature).","page_number":111,"box":{"x":68,"y":551,"width":528,"height":11}},{"id":"478d9b0e-259d-49c4-8b47-a30843b344b9","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":111,"box":{"x":101,"y":574,"width":797,"height":11}},{"id":"4a3d6aa6-e657-461f-bc40-e5ee7cc5a191","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":111,"box":{"x":68,"y":589,"width":770,"height":11}},{"id":"b508ec9b-46c7-4d4f-99c3-89d812f6ef88","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":111,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"cb9a7d77-2f70-4aee-9189-820df7322347","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":111,"box":{"x":70,"y":619,"width":805,"height":11}},{"id":"c86e9dd8-3fab-4a7e-a450-8b4a5fee9b1f","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":111,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"f4f97488-5266-407f-b814-b7f152a7b41c","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":111,"box":{"x":69,"y":649,"width":832,"height":12}},{"id":"5b581816-4d9b-43f9-9f91-2bf4948f6122","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":111,"box":{"x":69,"y":665,"width":804,"height":11}},{"id":"997f4353-836f-4437-96bb-3671dbbb18e9","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":111,"box":{"x":69,"y":680,"width":803,"height":11}},{"id":"3c8db9ac-258d-4330-a956-32fa4032519d","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":111,"box":{"x":70,"y":695,"width":763,"height":11}},{"id":"be7348e1-2e47-47ab-862c-7cb9f5cdcac2","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":111,"box":{"x":69,"y":710,"width":797,"height":11}},{"id":"4181700b-678d-4c57-87d1-45e2ac19a3c7","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":111,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"438eab11-267e-4ad8-bf65-3daff58d610c","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":111,"box":{"x":68,"y":740,"width":816,"height":11}},{"id":"24bbd4e3-1d3b-4f4c-ba80-720d2191944e","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":111,"box":{"x":69,"y":755,"width":537,"height":11}},{"id":"15a0ef40-a165-4522-ac10-58aa67a05c7a","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":111,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"ffc99dbe-d994-411a-bb6d-1e38896baf4d","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":111,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"d7ec6cfc-42d4-4720-a140-b28bda2361a9","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":111,"box":{"x":68,"y":808,"width":482,"height":11}},{"id":"a2bcf906-5129-4605-8367-8f686cabce87","block_type":"box","text":"Insured Municipal Bonds.","page_number":111,"box":{"x":102,"y":831,"width":179,"height":11}},{"id":"5544e07b-0b08-4ca4-8fa6-7e4dee1318eb","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":111,"box":{"x":288,"y":831,"width":619,"height":11}},{"id":"8b85ccd1-0c7c-41d6-9914-050431b5a5de","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":111,"box":{"x":70,"y":846,"width":835,"height":11}},{"id":"92c04324-740c-4db5-8a66-73e08672b336","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":111,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"11c38d44-b001-4e1d-a79f-d9280bc2b3b8","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":111,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"29ee3bad-2f02-4c38-854c-b67bf7a574c8","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":111,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"b481bb96-5666-4f9d-a722-fc270ba42458","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":111,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"086fad10-b9c6-4617-85f3-86775d91028f","block_type":"box","text":"II-64","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4703cc8b-294b-4b72-a5c6-c5be7bb5c614","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9fa3ba4c-258b-41d3-b6cc-3f984a2b9805","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":112,"box":{"x":70,"y":45,"width":815,"height":11}},{"id":"e6a04592-5e08-4f3b-a965-192b3e0b51f4","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":112,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"645f8ba3-0edb-4b64-b9a1-80b95230f2d9","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":112,"box":{"x":68,"y":75,"width":767,"height":11}},{"id":"f65b08cb-9454-4533-a46b-ce7f682cd6e5","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":112,"box":{"x":70,"y":90,"width":827,"height":11}},{"id":"02920c7d-ca9c-43d9-ab18-4369d2cdd049","block_type":"box","text":"bond could drop.","page_number":112,"box":{"x":69,"y":105,"width":118,"height":11}},{"id":"8cd385db-b796-4f98-bbaa-6241a9992cad","block_type":"box","text":"Build America Bonds.","page_number":112,"box":{"x":102,"y":128,"width":150,"height":9}},{"id":"93d44850-260c-466d-abcc-255b721a53a6","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":112,"box":{"x":259,"y":128,"width":616,"height":11}},{"id":"d5dbb641-9c5a-41e2-a492-13daa8e54d64","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":112,"box":{"x":70,"y":143,"width":825,"height":11}},{"id":"6d3a0236-0311-419a-84b5-0725dde126bd","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":112,"box":{"x":68,"y":158,"width":824,"height":11}},{"id":"3953b33e-33c1-4996-9296-6bb53a16766a","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":112,"box":{"x":70,"y":173,"width":833,"height":11}},{"id":"37c8ea85-2e06-4e8a-923a-4b48c70aaf58","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":112,"box":{"x":69,"y":188,"width":815,"height":12}},{"id":"c6e22a45-8e44-47d3-9da5-a29e9a20385d","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":112,"box":{"x":69,"y":203,"width":788,"height":12}},{"id":"0cc4e723-6d82-408b-a4e4-01baf997bebc","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":112,"box":{"x":69,"y":218,"width":823,"height":12}},{"id":"1145c02d-439e-445a-8871-ca334ade3622","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":112,"box":{"x":70,"y":234,"width":825,"height":11}},{"id":"76b44539-a229-4821-839f-8faf904ed127","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":112,"box":{"x":69,"y":249,"width":837,"height":11}},{"id":"c05c5295-76c9-4a50-8390-6f59c479f1e8","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":112,"box":{"x":69,"y":264,"width":802,"height":11}},{"id":"4ea82665-cf78-4e59-a0c5-b12167807e12","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":112,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"945bec06-e4bf-4c76-8fe2-b6eede7bd569","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":112,"box":{"x":68,"y":294,"width":760,"height":11}},{"id":"aac14fef-b104-4d35-976e-817b5a10dd60","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":112,"box":{"x":70,"y":309,"width":782,"height":11}},{"id":"ab6a16e5-fb34-4410-b53d-9f6bcd997406","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":112,"box":{"x":69,"y":324,"width":563,"height":11}},{"id":"70e8eac3-171b-421e-be6a-c6f7c8623803","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":112,"box":{"x":103,"y":347,"width":246,"height":11}},{"id":"e7dff005-6adf-4f18-92bd-6a551ea27894","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":112,"box":{"x":355,"y":347,"width":534,"height":11}},{"id":"dfdf1901-08e5-4064-be15-36c2b45be723","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":112,"box":{"x":68,"y":362,"width":798,"height":11}},{"id":"42cd5429-f448-4b95-8055-7d13d931103a","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":112,"box":{"x":70,"y":377,"width":823,"height":12}},{"id":"14e7e6fd-38ac-4ec4-93f1-73b6ab994a8e","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":112,"box":{"x":69,"y":392,"width":830,"height":12}},{"id":"0c8a1121-f144-4688-9c7b-41620e8e01c4","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":112,"box":{"x":68,"y":407,"width":832,"height":11}},{"id":"4d6a7e22-7d47-45fb-ac2a-4be6dd6b6468","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":112,"box":{"x":70,"y":423,"width":819,"height":11}},{"id":"0ced1c41-807b-4bd2-b204-20cf95cdedb4","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":112,"box":{"x":69,"y":438,"width":752,"height":11}},{"id":"5f311430-3815-4588-a688-8fb76ad16e59","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":112,"box":{"x":102,"y":461,"width":770,"height":11}},{"id":"3214d5b1-3152-4706-a461-8c8e71193e97","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":112,"box":{"x":69,"y":475,"width":806,"height":12}},{"id":"3353bee1-4316-4847-99af-e3b64a275288","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":112,"box":{"x":70,"y":491,"width":809,"height":11}},{"id":"0e7f9897-6f54-4a53-a191-1cae67b5f3f2","block_type":"box","text":"their face value to the sponsor (e.g., a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":112,"box":{"x":68,"y":506,"width":814,"height":11}},{"id":"6a57fe60-4f22-41e2-b15d-8c7b6d9e959a","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":112,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"47a9f212-64a6-4cf1-ad1d-4aaab0d94707","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":112,"box":{"x":69,"y":536,"width":648,"height":11}},{"id":"9660ceaa-a864-46c3-974c-300e27d9456c","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":112,"box":{"x":101,"y":559,"width":775,"height":11}},{"id":"68905945-6d40-4a0b-accd-486fa58f0d2b","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":112,"box":{"x":70,"y":574,"width":785,"height":11}},{"id":"1422570a-4c6c-40ce-92b6-5400767cc53f","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":112,"box":{"x":68,"y":589,"width":821,"height":11}},{"id":"0c7f828e-7a5e-4829-a0ea-99b42b5c304b","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":112,"box":{"x":70,"y":604,"width":833,"height":11}},{"id":"e6c2a08c-4211-478b-8ca9-024eca40e03e","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":112,"box":{"x":70,"y":619,"width":351,"height":11}},{"id":"041e82a1-aaa3-4f25-aa4a-7fb1d385caf3","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":112,"box":{"x":101,"y":642,"width":797,"height":11}},{"id":"1efa6ab8-77b5-439d-b543-dc382167303b","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":112,"box":{"x":68,"y":657,"width":836,"height":11}},{"id":"2cb9e734-528b-4e3e-a8af-0f81e1d56795","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":112,"box":{"x":69,"y":672,"width":831,"height":11}},{"id":"0be86737-486a-45bc-8a88-f9d16bb7c27d","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":112,"box":{"x":69,"y":687,"width":809,"height":11}},{"id":"3b70b8b5-4c9b-4091-9928-bb9c737ff38c","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":112,"box":{"x":69,"y":702,"width":818,"height":11}},{"id":"42688ee5-16b6-41ed-9931-0a8f540bfef4","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":112,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"a8d0b356-1ef4-426a-8cab-26681df06d35","block_type":"box","text":"such opinions.","page_number":112,"box":{"x":69,"y":733,"width":102,"height":10}},{"id":"f0b1418e-5805-4a85-937a-2ccf87171805","block_type":"box","text":"Operational and Technology Risks","page_number":112,"box":{"x":102,"y":755,"width":247,"height":11}},{"id":"173d662b-5d29-4e8a-9854-68c59d3eb822","block_type":"box","text":"— The Fund and the entities with which it interacts directly or indirectly are","page_number":112,"box":{"x":353,"y":755,"width":533,"height":11}},{"id":"93d4b9ad-bb0e-4b2f-a661-4f5f00ee7129","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":112,"box":{"x":69,"y":771,"width":766,"height":11}},{"id":"213bf244-2927-46c3-bce4-bcad3f48d5f0","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":112,"box":{"x":69,"y":785,"width":812,"height":12}},{"id":"d18c0114-42e9-4b26-87e4-d00111d485ce","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":112,"box":{"x":70,"y":801,"width":820,"height":11}},{"id":"abe172f2-243e-4ef3-a632-91ead7967910","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":112,"box":{"x":69,"y":816,"width":807,"height":11}},{"id":"97fdf970-5877-41fc-9536-8c3fb07eb4aa","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":112,"box":{"x":70,"y":831,"width":741,"height":11}},{"id":"052a61a3-bf7f-422f-b3bd-d88c6ef178c1","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":112,"box":{"x":69,"y":846,"width":802,"height":11}},{"id":"007b281c-d6b0-40a0-9944-eecb82906512","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":112,"box":{"x":68,"y":861,"width":818,"height":11}},{"id":"2fde0c37-8270-4edb-9460-567f09af418c","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":112,"box":{"x":69,"y":876,"width":827,"height":11}},{"id":"ae99eb57-5bdf-444e-afc9-b63c85b20657","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":112,"box":{"x":70,"y":891,"width":803,"height":12}},{"id":"322760bb-0089-4e6d-9dee-7dbbf73f4604","block_type":"box","text":"II-65","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9a0bc283-0bd7-4165-87a9-e2f1923d87a7","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fddf3c88-b9b4-49d0-ae90-6edb4ed35d0a","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":113,"box":{"x":102,"y":45,"width":796,"height":11}},{"id":"1c87172c-b77d-41dc-9e59-3d414df524b6","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":113,"box":{"x":70,"y":60,"width":790,"height":11}},{"id":"3125a702-ea96-4560-b74e-c6856a4b2579","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":113,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"c5d93142-c6a5-4a33-8e2c-d7094a47bcbc","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":113,"box":{"x":69,"y":90,"width":768,"height":11}},{"id":"3b1fbf70-acab-43bd-8b71-509282a38654","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":113,"box":{"x":70,"y":105,"width":827,"height":11}},{"id":"56753db9-ca43-4538-82ad-48e656d5e629","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":113,"box":{"x":69,"y":120,"width":760,"height":12}},{"id":"29fdcb12-8f28-4a7d-b380-8fac9905913e","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":113,"box":{"x":69,"y":135,"width":763,"height":12}},{"id":"5bbd8a8d-e604-4bd6-a4d5-16dd44a70963","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":113,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"42fd86c3-ee22-42e3-b231-7bf085f52d6c","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":113,"box":{"x":69,"y":166,"width":766,"height":11}},{"id":"3b0a4f89-e0b2-4395-8957-9dbd71117574","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":113,"box":{"x":69,"y":181,"width":804,"height":11}},{"id":"251586e7-6130-44de-92ba-cf934ca9b3c1","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":113,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"a8153c3e-9ce0-40a9-93b4-b5b5a7d25bad","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":113,"box":{"x":69,"y":211,"width":800,"height":11}},{"id":"2298299f-8e7f-43fa-9e1d-bd2a8d005124","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":113,"box":{"x":69,"y":226,"width":812,"height":11}},{"id":"7e76e45b-3021-4780-818f-3d9918e41135","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":113,"box":{"x":69,"y":241,"width":777,"height":11}},{"id":"93896009-db6e-46db-b0da-988bd4f7ad71","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":113,"box":{"x":69,"y":257,"width":824,"height":11}},{"id":"46f8cbae-4f2d-49da-a78f-a3977e4ea6f7","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":113,"box":{"x":68,"y":271,"width":836,"height":12}},{"id":"fbbde2af-34e5-4d01-9b4f-7d8e522b615a","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":113,"box":{"x":69,"y":286,"width":833,"height":12}},{"id":"61bd495e-0007-43ce-96bf-5f5e7a4186af","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":113,"box":{"x":68,"y":302,"width":793,"height":11}},{"id":"01003731-f2a8-4f37-abba-3b537cec0055","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":113,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"1fe706e9-32c5-4847-8043-c3bf3195f1a7","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":113,"box":{"x":68,"y":332,"width":787,"height":11}},{"id":"e2f89e4a-9325-4990-960a-31a8c6d4b534","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":113,"box":{"x":69,"y":347,"width":742,"height":11}},{"id":"16a902c8-ab56-4c7e-9022-069e1536695a","block_type":"box","text":"infrastructure assets.","page_number":113,"box":{"x":70,"y":362,"width":151,"height":9}},{"id":"5eb2730f-f9fe-4430-95bb-666ed755f8e5","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":113,"box":{"x":101,"y":385,"width":755,"height":11}},{"id":"858f8ac9-55a9-49f6-a9f3-ddf8d4bd9625","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":113,"box":{"x":70,"y":400,"width":835,"height":11}},{"id":"0b26da2a-ae59-4d2d-a4c3-482a3397929b","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":113,"box":{"x":68,"y":415,"width":833,"height":11}},{"id":"bd095495-2cf0-4233-a270-091e057f0277","block_type":"box","text":"or services.","page_number":113,"box":{"x":69,"y":430,"width":82,"height":9}},{"id":"ef93956f-7103-44a3-9449-5199f0244791","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":113,"box":{"x":102,"y":453,"width":781,"height":11}},{"id":"dab335be-514b-4ef4-988a-56f08c31769e","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":113,"box":{"x":69,"y":468,"width":801,"height":11}},{"id":"abec9908-37c2-4610-8586-cc552db947c1","block_type":"box","text":"other third-party AI technology applications and users.","page_number":113,"box":{"x":69,"y":483,"width":383,"height":11}},{"id":"4d59fa27-5b50-491e-862a-7786667c84ea","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":113,"box":{"x":102,"y":506,"width":795,"height":11}},{"id":"b01367ab-94c4-475e-8225-22596a99a326","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":113,"box":{"x":69,"y":521,"width":813,"height":11}},{"id":"fa4373ab-3b89-4c0d-836a-081792c0e943","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":113,"box":{"x":69,"y":536,"width":785,"height":11}},{"id":"7a6c7780-1cc2-4a8c-88be-15143c13c7ed","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":113,"box":{"x":69,"y":551,"width":782,"height":11}},{"id":"7e0300fd-4e13-4a02-956b-2fa04b029fac","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":113,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"1f82a014-9c43-4c3f-9999-50233052bd06","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":113,"box":{"x":70,"y":582,"width":809,"height":11}},{"id":"256d17ec-db22-48bd-be9f-4568bcfb2546","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":113,"box":{"x":69,"y":596,"width":805,"height":12}},{"id":"f01d1e3b-c8d7-495c-9f2a-762dad89e494","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":113,"box":{"x":70,"y":612,"width":822,"height":11}},{"id":"402cb471-c8cc-4498-806a-2f8c229873f3","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":113,"box":{"x":68,"y":627,"width":789,"height":11}},{"id":"2d0048f6-f761-421d-8e31-6c083c9f0ec3","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":113,"box":{"x":102,"y":650,"width":786,"height":11}},{"id":"c8ffc4fc-aeab-4068-90e7-96213cc64a0c","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":113,"box":{"x":69,"y":664,"width":791,"height":11}},{"id":"dbf7d7ee-d8e9-44bb-9824-341c7bdaf1eb","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":113,"box":{"x":70,"y":680,"width":796,"height":11}},{"id":"4048fb75-7cde-49b3-bd28-7dfefe316974","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":113,"box":{"x":69,"y":695,"width":788,"height":11}},{"id":"57e38b06-19f6-45ea-8044-b059ac25d5b8","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":113,"box":{"x":69,"y":710,"width":839,"height":11}},{"id":"68707462-436f-4b28-8f50-08c87d94b4f7","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":113,"box":{"x":68,"y":725,"width":773,"height":11}},{"id":"0645ec29-b42d-42d9-9f9a-f849117531c2","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":113,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"5b8c6c4c-bf41-4759-891e-8f7043ec193e","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":113,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"45106a8b-05f1-429c-a916-60fc82e788e1","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":113,"box":{"x":69,"y":770,"width":412,"height":11}},{"id":"8006c1c7-778a-4a3e-8270-3b59a25c00a5","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":113,"box":{"x":101,"y":793,"width":797,"height":11}},{"id":"cded2bf6-75a6-48bc-ab38-141df841c711","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":113,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"6a4b9b86-957b-4b87-90b1-0602acbeac76","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":113,"box":{"x":68,"y":823,"width":824,"height":12}},{"id":"ff3c5837-75c6-47a9-b85a-658301c548d3","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":113,"box":{"x":69,"y":838,"width":561,"height":12}},{"id":"d4213b93-54af-4adf-931e-625d0a9d3cb9","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":113,"box":{"x":101,"y":861,"width":747,"height":11}},{"id":"7a8d80c5-970a-4332-9ca6-539e1d6d87b5","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":113,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"dbd99682-2082-4424-8328-4c5f3e1f8465","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":113,"box":{"x":68,"y":891,"width":823,"height":12}},{"id":"55cb708f-cee7-42e5-81bf-a88966551d3c","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":113,"box":{"x":68,"y":907,"width":755,"height":11}},{"id":"100735e2-4cec-4ea4-80db-970cbaec9254","block_type":"box","text":"II-66","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a8eb50f2-f321-4efd-b393-265202076bba","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d3b0fdf-2647-4687-bfee-9bdff67495b5","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":114,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"777978d7-c6f0-4a35-a37c-f52ddac52c0d","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":114,"box":{"x":70,"y":60,"width":812,"height":11}},{"id":"6fd23f6f-1043-4f41-89e9-e54fcb65db37","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":114,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"6175bd8f-db1d-49e8-976c-877114569be9","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":114,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"1ecd9e2d-e470-4f38-819b-87ddc5fa3fd6","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":114,"box":{"x":69,"y":105,"width":792,"height":11}},{"id":"6e52b740-df2b-4eb3-9b73-4ace80fc1b40","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":114,"box":{"x":69,"y":120,"width":775,"height":11}},{"id":"39092287-2a1f-4f29-94c6-ffda2fe036c1","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":114,"box":{"x":69,"y":135,"width":510,"height":11}},{"id":"023969f7-43dc-489a-993e-58599bae3ae0","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":114,"box":{"x":102,"y":158,"width":771,"height":11}},{"id":"66362a02-8699-4b02-b5d5-1794d4958ab2","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":114,"box":{"x":69,"y":173,"width":816,"height":11}},{"id":"da216d98-4920-4489-a91c-34295e59efed","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":114,"box":{"x":69,"y":188,"width":778,"height":12}},{"id":"41692851-07b8-4f06-b581-473b06dd0093","block_type":"box","text":"resources to monitor and implement required changes.","page_number":114,"box":{"x":69,"y":204,"width":391,"height":11}},{"id":"36a2ae6a-533c-44fc-bde4-c2f16130fa9c","block_type":"box","text":"Participation Notes.","page_number":114,"box":{"x":102,"y":226,"width":145,"height":11}},{"id":"9ac8742f-6a2f-489f-b1a9-75b2bc5dec51","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":114,"box":{"x":253,"y":226,"width":641,"height":11}},{"id":"07d4d677-f466-4253-bfe5-ad55863669f0","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":114,"box":{"x":70,"y":241,"width":766,"height":11}},{"id":"35d9e63e-c500-4b7f-8f74-86bfd0aa94a3","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":114,"box":{"x":69,"y":257,"width":772,"height":11}},{"id":"2f862a33-368c-4ab6-95b4-fe43b1ee1bea","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":114,"box":{"x":69,"y":271,"width":475,"height":12}},{"id":"5d834b7d-d840-4ae1-9431-a5a85d4475ac","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":114,"box":{"x":101,"y":294,"width":782,"height":11}},{"id":"3734f56c-8aa5-4dca-82c3-ef4085345a7f","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":114,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"c69c6ff4-1fec-46e6-a7b9-4111f23e27dc","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":114,"box":{"x":69,"y":324,"width":831,"height":12}},{"id":"25ff1690-af4c-4e32-b03c-1ba5e4b759c3","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":114,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"f8c71d1d-b7bf-4244-8a9f-36db8556bc15","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":114,"box":{"x":69,"y":355,"width":787,"height":11}},{"id":"1d2657b6-74cf-407c-bf9b-cbea4f1280af","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":114,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"d3ac259c-ca4e-4d8b-994f-e7aa70e8ebe8","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":114,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"3474d6f7-2867-4335-a6b6-d2a3ee03c888","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":114,"box":{"x":69,"y":400,"width":822,"height":11}},{"id":"339ec7fa-f8b5-483c-9c9e-802b949b3290","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":114,"box":{"x":69,"y":415,"width":801,"height":11}},{"id":"5604be52-620d-463d-8a80-da15c656084d","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":114,"box":{"x":101,"y":438,"width":743,"height":11}},{"id":"6e5770fd-4791-4e43-96dd-991ae9bd3b09","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":114,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"ca6e2a82-5612-4db9-837a-f743f38c7331","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":114,"box":{"x":70,"y":468,"width":799,"height":11}},{"id":"917f74a4-51a1-4dfe-a3e8-b05c102004ce","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":114,"box":{"x":70,"y":483,"width":776,"height":11}},{"id":"735f0a09-72d4-4325-bd1c-7e6071a2a2cc","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":114,"box":{"x":68,"y":498,"width":834,"height":11}},{"id":"ef584160-5df0-4c2d-80a4-cee73c98f241","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":114,"box":{"x":69,"y":514,"width":834,"height":11}},{"id":"1404a4a0-1b5b-42a7-b931-fda5b7eb5f2f","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":114,"box":{"x":68,"y":528,"width":454,"height":12}},{"id":"a836e56d-4196-48e7-9f0a-7f5a1994f762","block_type":"box","text":"Portfolio Turnover Rates.","page_number":114,"box":{"x":102,"y":551,"width":181,"height":9}},{"id":"4d266dd4-859f-4b43-88b9-441c31c7c2bc","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":114,"box":{"x":289,"y":551,"width":558,"height":11}},{"id":"9110733c-a7e7-4432-bdc6-a014b3ae6433","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":114,"box":{"x":70,"y":566,"width":804,"height":11}},{"id":"282cee51-e7a9-4370-b2f0-626ac1c08c8b","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":114,"box":{"x":70,"y":582,"width":806,"height":11}},{"id":"07c47c7c-de81-4b67-aa61-450163d8ddfc","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":114,"box":{"x":69,"y":596,"width":800,"height":11}},{"id":"f6d1cb57-2b66-476b-a574-9f8fb1b94df1","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":114,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"13cd7507-90bd-4956-a80c-d0d09fb2cc97","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":114,"box":{"x":68,"y":627,"width":800,"height":11}},{"id":"790d5b82-6dfa-487e-aabc-d92380b44531","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (i.e., 100% or more) may result in","page_number":114,"box":{"x":68,"y":642,"width":829,"height":11}},{"id":"923be964-0186-426d-980c-2ab0d98c5031","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":114,"box":{"x":70,"y":657,"width":797,"height":11}},{"id":"445d1336-2aeb-4b8d-ab99-a2904bcd7b82","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":114,"box":{"x":69,"y":672,"width":832,"height":11}},{"id":"c66d90bb-b138-46ff-a5d2-1a59c50af2fe","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":114,"box":{"x":68,"y":687,"width":831,"height":11}},{"id":"40029fff-552f-402b-bd5b-48ff47f5dfdf","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":114,"box":{"x":68,"y":702,"width":795,"height":12}},{"id":"d42d2e0f-3651-4f0f-af51-5df77e249633","block_type":"box","text":"Preferred Stock.","page_number":114,"box":{"x":102,"y":725,"width":118,"height":9}},{"id":"582c3b00-0bc1-45ba-b9d3-daac1f12b587","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":114,"box":{"x":226,"y":725,"width":665,"height":11}},{"id":"94769be0-b2fd-42de-9de5-023109ce73e8","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":114,"box":{"x":69,"y":740,"width":808,"height":11}},{"id":"68253576-7d9f-4142-87a9-4118e0cbe74c","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":114,"box":{"x":69,"y":755,"width":834,"height":11}},{"id":"658124f0-7442-41f1-9d20-7c8f5b984464","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":114,"box":{"x":68,"y":770,"width":808,"height":11}},{"id":"b027526c-e572-4ede-8170-0f4488aa0405","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":114,"box":{"x":68,"y":785,"width":813,"height":12}},{"id":"9eff7ffd-421a-462c-9389-41b689a430ce","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":114,"box":{"x":69,"y":801,"width":831,"height":11}},{"id":"20e99f0d-3268-4ea5-bd03-3a9a154cc067","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":114,"box":{"x":69,"y":816,"width":791,"height":11}},{"id":"dce82e63-22b2-4144-988a-f3bda5c0a5a1","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":114,"box":{"x":70,"y":831,"width":838,"height":11}},{"id":"78ab77f5-22e4-4896-b9c7-f78833b16453","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":114,"box":{"x":69,"y":846,"width":604,"height":11}},{"id":"27a62c61-cb5c-4607-9c0a-311d1e06d67b","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":114,"box":{"x":103,"y":869,"width":207,"height":11}},{"id":"0552861f-5bca-48de-a607-d3bc0ffe7d7e","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":114,"box":{"x":316,"y":869,"width":588,"height":11}},{"id":"3a67f8d7-17fb-4343-8b63-b63dc2199892","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":114,"box":{"x":69,"y":884,"width":806,"height":11}},{"id":"07a16599-a418-4da2-806a-ae1a9660dc13","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":114,"box":{"x":69,"y":899,"width":814,"height":11}},{"id":"04443a9d-e068-4434-bab0-7978a7e54774","block_type":"box","text":"II-67","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e7a26066-8e57-4ba4-a90f-b3939b086697","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6cd0b8c7-3d0f-4672-a6a0-b53db1868e89","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":115,"box":{"x":69,"y":45,"width":780,"height":11}},{"id":"f8d882f8-d8e7-4384-ba7d-877eb645d60b","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":115,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"e4edd208-b370-4148-a8b4-1e15cbf901e1","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":115,"box":{"x":69,"y":75,"width":772,"height":11}},{"id":"7119cc99-870d-4184-95c0-ae3790443c5a","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":115,"box":{"x":69,"y":90,"width":821,"height":11}},{"id":"c5f8c3e0-8700-44b2-848d-9fb5a7a356b4","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":115,"box":{"x":69,"y":105,"width":834,"height":11}},{"id":"91e5096d-8a90-431e-8cba-7aa8e27a287f","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":115,"box":{"x":70,"y":120,"width":474,"height":11}},{"id":"fce98404-2807-4c4b-ac43-f6be06b9fd05","block_type":"box","text":"Trust Preferred Securities.","page_number":115,"box":{"x":103,"y":143,"width":184,"height":9}},{"id":"33e39030-ad4f-4f41-b302-841a0e51d191","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":115,"box":{"x":294,"y":143,"width":599,"height":11}},{"id":"16c12cdf-0b6f-4248-94cf-dd709ac72073","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":115,"box":{"x":68,"y":158,"width":737,"height":11}},{"id":"38f43908-0fef-4d7c-8d24-b0858dd857b7","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":115,"box":{"x":69,"y":173,"width":796,"height":11}},{"id":"f9f2de58-dc7a-4f47-88cd-3c3eada2f0cf","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":115,"box":{"x":69,"y":188,"width":805,"height":11}},{"id":"4a19cfbb-222e-4db3-9dac-1be2414f6c8f","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":115,"box":{"x":68,"y":203,"width":773,"height":12}},{"id":"cf85ba67-f697-4893-86cf-a3884ce025cc","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":115,"box":{"x":101,"y":226,"width":770,"height":11}},{"id":"5d85502e-15c7-449a-8f93-13b2fb3c167a","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":115,"box":{"x":68,"y":241,"width":801,"height":11}},{"id":"a452d447-5fc4-4730-a8c1-90e01d333dea","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":115,"box":{"x":69,"y":256,"width":830,"height":12}},{"id":"ce093810-b080-4870-a73d-31e301f5317a","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":115,"box":{"x":69,"y":271,"width":822,"height":12}},{"id":"af5de82c-62a6-49e2-a685-8b2e725bc2cf","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":115,"box":{"x":68,"y":286,"width":777,"height":12}},{"id":"8aa51db9-12b4-40aa-ac90-727b240a79ba","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":115,"box":{"x":69,"y":302,"width":831,"height":11}},{"id":"9b011750-79e0-4bec-9565-9c322554e14c","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":115,"box":{"x":68,"y":317,"width":757,"height":11}},{"id":"72273958-cc83-4bf1-acb7-2292e8b0ce3c","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":115,"box":{"x":69,"y":332,"width":548,"height":11}},{"id":"f6ac473f-b182-45ea-8f56-3e57ea11e1c1","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":115,"box":{"x":101,"y":355,"width":715,"height":11}},{"id":"9fd096a5-dca8-4ccf-ba41-e0cc353f4b23","block_type":"box","text":"®","page_number":115,"box":{"x":817,"y":355,"width":5,"height":4}},{"id":"00ab736c-6257-4372-a066-5622ee518587","block_type":"box","text":"”); monthly","page_number":115,"box":{"x":824,"y":355,"width":77,"height":11}},{"id":"55b1ada6-7b92-49f0-8e39-881257283274","block_type":"box","text":"income preferred securities (“MIPS","page_number":115,"box":{"x":70,"y":370,"width":248,"height":11}},{"id":"a306e372-e6e7-48ab-9c73-ced90cc1537f","block_type":"box","text":"®","page_number":115,"box":{"x":319,"y":370,"width":6,"height":5}},{"id":"0ab75a63-6f8f-4f22-bf7b-e478030eff8c","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":115,"box":{"x":326,"y":370,"width":317,"height":11}},{"id":"03d2652b-ddb0-4918-8dd4-52bade469c8a","block_type":"box","text":"®","page_number":115,"box":{"x":644,"y":370,"width":6,"height":5}},{"id":"49b6cded-61b6-44b1-a475-a5132807db63","block_type":"box","text":"” ); quarterly income debt securities","page_number":115,"box":{"x":652,"y":370,"width":255,"height":11}},{"id":"c83cf20f-ccd4-43bb-a925-b7fb61f0af6f","block_type":"box","text":"(“QUIDS","page_number":115,"box":{"x":69,"y":385,"width":57,"height":11}},{"id":"9aa2afa4-aac1-4b13-aa8c-f31e776bc319","block_type":"box","text":"®","page_number":115,"box":{"x":127,"y":385,"width":6,"height":5}},{"id":"728ceb47-b92c-4203-9ca5-87e54d0eb4c1","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":115,"box":{"x":135,"y":385,"width":346,"height":11}},{"id":"528443d6-37c9-4c7a-a4b7-556090a693ad","block_type":"box","text":"SM","page_number":115,"box":{"x":482,"y":385,"width":11,"height":5}},{"id":"ffa43203-35b4-471a-9bb6-b0c792806b04","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":115,"box":{"x":495,"y":385,"width":267,"height":11}},{"id":"dd8864f4-2a7f-4bbe-9ea1-a2d505c929e8","block_type":"box","text":"®","page_number":115,"box":{"x":762,"y":385,"width":6,"height":5}},{"id":"f8496b76-e0e7-4be2-a45c-76246c8780ff","block_type":"box","text":"”); public income","page_number":115,"box":{"x":770,"y":385,"width":118,"height":11}},{"id":"eebe6923-4938-4376-bb32-b057060864c6","block_type":"box","text":"notes (“PINES","page_number":115,"box":{"x":69,"y":400,"width":99,"height":11}},{"id":"d3509e09-4dc9-40ec-b734-526ddc52700a","block_type":"box","text":"®","page_number":115,"box":{"x":169,"y":400,"width":6,"height":5}},{"id":"e2868e48-8d4f-4549-80c8-49d3bf03e8f9","block_type":"box","text":"”); and other trust preferred securities.","page_number":115,"box":{"x":177,"y":400,"width":275,"height":11}},{"id":"fe2dcc21-90ec-496d-9bd2-b483718be1d4","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":115,"box":{"x":101,"y":423,"width":790,"height":11}},{"id":"a8ee767b-79bf-480f-bb20-7c20e950b7b2","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":115,"box":{"x":70,"y":438,"width":825,"height":11}},{"id":"6c6cc6d8-2630-4a11-8e96-2454bedfed65","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":115,"box":{"x":68,"y":453,"width":827,"height":11}},{"id":"24cd49df-506e-4e5b-8485-e39f215f3dc5","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":115,"box":{"x":70,"y":468,"width":808,"height":11}},{"id":"0033d370-b3b8-44d1-80ea-e1910d76064a","block_type":"box","text":"regard to whether all payments have been paid.","page_number":115,"box":{"x":69,"y":483,"width":338,"height":11}},{"id":"be26419d-bd91-400b-bc7c-d3a18f3e93a9","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":115,"box":{"x":102,"y":506,"width":784,"height":11}},{"id":"781aa315-92bc-4101-8143-fe162c1d85a4","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":115,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"491e26bb-738f-48fc-93d3-a590118d846d","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":115,"box":{"x":69,"y":536,"width":817,"height":11}},{"id":"cf0b85bb-4eca-4a94-8623-310b584f150c","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":115,"box":{"x":68,"y":551,"width":785,"height":11}},{"id":"b2c89c00-65bf-4fe3-a18e-7e72cc87f7c7","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":115,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"db1fede7-6e0f-4334-9f92-ecdb29f8a69a","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":115,"box":{"x":70,"y":581,"width":819,"height":12}},{"id":"5655a6ea-d12e-4728-bf8b-77f55e3a04b4","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":115,"box":{"x":68,"y":596,"width":827,"height":12}},{"id":"98912142-c301-4db6-98b2-f1e6bba7e948","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":115,"box":{"x":68,"y":612,"width":824,"height":11}},{"id":"ebb4cfab-dd80-4d5d-a20c-878e6e2caddf","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":115,"box":{"x":70,"y":627,"width":819,"height":11}},{"id":"a3d68564-5792-460f-9d0e-9d0a1a7062a5","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":115,"box":{"x":69,"y":642,"width":817,"height":11}},{"id":"eb2bac11-accb-4454-b91f-a89acc36ad54","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":115,"box":{"x":69,"y":657,"width":778,"height":11}},{"id":"9751ea3a-b91d-4cc7-ac8a-ffcc70dfb629","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":115,"box":{"x":68,"y":672,"width":811,"height":11}},{"id":"a690fcde-1d47-4008-999b-a4ad08f0b2d1","block_type":"box","text":"debt securities.","page_number":115,"box":{"x":69,"y":687,"width":109,"height":9}},{"id":"84e45897-dd9f-4036-ac9c-532f7baf5191","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":115,"box":{"x":102,"y":710,"width":300,"height":11}},{"id":"8f680b84-1fdc-4c47-97f9-be253da9cca3","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":115,"box":{"x":409,"y":710,"width":473,"height":11}},{"id":"521a25c6-dc78-48c1-adbd-8bedcbbe08a7","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":115,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"323d4d0b-8dcf-49a1-9c24-6b5b5958da41","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":115,"box":{"x":68,"y":740,"width":814,"height":11}},{"id":"cb1ad3af-b8e6-452a-b689-a6f5995435eb","block_type":"box","text":"geographic areas or in specific property types, i.e., hotels, shopping malls, residential complexes and office","page_number":115,"box":{"x":68,"y":755,"width":771,"height":11}},{"id":"3ee89cdc-519e-4c36-8bcf-37ce487dd10a","block_type":"box","text":"buildings.","page_number":115,"box":{"x":69,"y":771,"width":66,"height":11}},{"id":"59f8d3dc-d4e2-44d3-bd02-925cba6a1a60","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":115,"box":{"x":102,"y":793,"width":768,"height":11}},{"id":"415bf3dd-0f14-4cbc-9084-5dd0b4bd5b27","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":115,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"dcf7cf36-02d8-491e-9a60-ff2fcb507d0d","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":115,"box":{"x":70,"y":823,"width":829,"height":12}},{"id":"e2f1cdea-fb29-4a46-a6fa-a035c23a28fa","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":115,"box":{"x":70,"y":838,"width":813,"height":12}},{"id":"370dd1c1-1f7c-461a-9246-eb0fd3719212","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":115,"box":{"x":68,"y":853,"width":782,"height":12}},{"id":"9be5b10a-e5fa-4b0d-927b-5a1af566e967","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":115,"box":{"x":70,"y":869,"width":649,"height":11}},{"id":"ff032be4-8979-4f92-92c2-26909747cdd1","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":115,"box":{"x":102,"y":891,"width":776,"height":12}},{"id":"b9f8aff1-d7cb-4e72-9c05-cc52fa973e17","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":115,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"9a0496cf-da5b-46b4-adf0-d6320dab6a01","block_type":"box","text":"II-68","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1767d78f-5305-4c34-a1a4-bc536ca5e745","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"231f4a4d-e7ae-4a54-9bc3-0fc53e750e61","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":116,"box":{"x":69,"y":45,"width":769,"height":11}},{"id":"e084dd8b-f8a4-4ad7-bf7a-480c969ab3ef","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":116,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"4be0d0db-8de3-4c2f-9fd2-78ffd098bc0c","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":116,"box":{"x":69,"y":75,"width":831,"height":11}},{"id":"f7dab507-115b-4e3f-9cc1-22996ec623d8","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":116,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"802954cd-7cea-4302-b514-d0251c2ef94a","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":116,"box":{"x":68,"y":105,"width":812,"height":11}},{"id":"677d2172-cc49-4fd5-80bb-607648a125cc","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":116,"box":{"x":70,"y":120,"width":838,"height":12}},{"id":"0e315353-8778-4287-8965-cd22071d0b80","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":116,"box":{"x":68,"y":135,"width":826,"height":12}},{"id":"2b2de387-2bfb-434c-924d-612e0a4c3c1b","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":116,"box":{"x":69,"y":150,"width":817,"height":12}},{"id":"77c7b9bd-fbf8-4c9e-a66b-faf295849618","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":116,"box":{"x":70,"y":166,"width":822,"height":11}},{"id":"e86e87c5-ba06-42c4-8fb8-be8bfd38528e","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":116,"box":{"x":70,"y":181,"width":792,"height":11}},{"id":"1905e21e-a099-4ef4-aaee-d620e51b64f7","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":116,"box":{"x":69,"y":196,"width":834,"height":11}},{"id":"5ea45b29-9dc8-4600-a2f4-841540231155","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":116,"box":{"x":69,"y":211,"width":798,"height":11}},{"id":"21fa3724-cb8b-4a02-82a1-a23706cdaf9f","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":116,"box":{"x":70,"y":226,"width":818,"height":11}},{"id":"eb3e2de1-b591-4b4c-9fe7-1b3b01090e6b","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":116,"box":{"x":69,"y":241,"width":821,"height":11}},{"id":"e819d464-2b42-4861-b0f2-14ee1d1f8bb6","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":116,"box":{"x":68,"y":256,"width":797,"height":12}},{"id":"1b4b7a5a-8d57-49ed-9e7b-58dbea38b6a5","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":116,"box":{"x":69,"y":271,"width":798,"height":12}},{"id":"69cfdd04-193a-4879-b8eb-ef4653e99124","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":116,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"d5c37dc1-5eae-4ec3-8d41-cfaedb898afe","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":116,"box":{"x":68,"y":302,"width":831,"height":11}},{"id":"743a98ee-8bc8-4430-895a-40516b59bbb2","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":116,"box":{"x":69,"y":317,"width":801,"height":11}},{"id":"62007ba0-710c-4ccd-a39e-179812df6938","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":116,"box":{"x":70,"y":332,"width":631,"height":11}},{"id":"c2d5d2d7-c3f0-4440-a417-096d8cf46657","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":116,"box":{"x":102,"y":355,"width":772,"height":11}},{"id":"85f8a8a5-caf0-4777-9089-20dba2079d9a","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":116,"box":{"x":70,"y":370,"width":790,"height":11}},{"id":"a1085649-c4e1-4ec0-8198-202d43beaddb","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":116,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"6c21d618-76a2-4642-af46-5bc0064c4b84","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":116,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"1479e778-d220-4a63-a0cc-b4fe9baf1489","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":116,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"b0ae62bc-fd6a-4272-82fd-bedf820b555d","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":116,"box":{"x":69,"y":430,"width":759,"height":11}},{"id":"99134faa-634d-4d2d-a996-ccba335d7f3d","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":116,"box":{"x":69,"y":445,"width":778,"height":12}},{"id":"24332724-7164-47b5-9d90-e47579912577","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":116,"box":{"x":102,"y":468,"width":773,"height":11}},{"id":"34b3d5ad-bdff-4939-a783-d957884e0887","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":116,"box":{"x":70,"y":483,"width":836,"height":11}},{"id":"5f966336-4af9-436a-a6d8-8fda95b05904","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":116,"box":{"x":68,"y":498,"width":839,"height":11}},{"id":"586fa6c9-f46b-4457-b217-d7a24e9aed5f","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":116,"box":{"x":69,"y":514,"width":832,"height":10}},{"id":"a29fbd9f-f9c1-4aa9-ad18-ef8267abd128","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":116,"box":{"x":70,"y":528,"width":832,"height":12}},{"id":"bdc66913-112e-4e49-9300-456d9c215f7d","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":116,"box":{"x":68,"y":543,"width":815,"height":12}},{"id":"84c891a0-aeed-424d-835d-e11bc6c81ee5","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":116,"box":{"x":69,"y":559,"width":804,"height":11}},{"id":"40844928-d049-4df1-b824-3c914bb4acf9","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":116,"box":{"x":68,"y":574,"width":761,"height":11}},{"id":"9a079c00-7e7b-476f-a34e-f06ea3924af5","block_type":"box","text":"Market Risks/Recent Market Events","page_number":116,"box":{"x":102,"y":597,"width":272,"height":10}},{"id":"8c7ff6f6-f947-4960-870a-d074f555c738","block_type":"box","text":". Securities may decline in value due to factors affecting securities","page_number":116,"box":{"x":374,"y":596,"width":475,"height":12}},{"id":"ce27bcd2-ec09-40db-946f-281f293793ad","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":116,"box":{"x":69,"y":612,"width":801,"height":11}},{"id":"6f177fad-2106-491f-aa52-2d6b5275830c","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":116,"box":{"x":68,"y":627,"width":837,"height":11}},{"id":"2b534c13-61f1-4509-9e51-d8485b62d111","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":116,"box":{"x":69,"y":642,"width":795,"height":11}},{"id":"09e0869f-fda4-4610-bead-5ff13c8ff978","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":116,"box":{"x":68,"y":657,"width":796,"height":11}},{"id":"83461510-b193-4571-98d1-c19bb2bff58e","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":116,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"48a2e56d-5e24-4523-b6e7-b3f6f783dc6b","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":116,"box":{"x":70,"y":687,"width":812,"height":11}},{"id":"ff1ac2b1-16a6-4af4-b432-428ad7b83648","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":116,"box":{"x":68,"y":702,"width":807,"height":11}},{"id":"9351ec6d-4157-43c5-a3b9-bb415dbfd6e9","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":116,"box":{"x":70,"y":717,"width":822,"height":12}},{"id":"f185899d-c6e8-4f5f-b313-9cb58225c4e2","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":116,"box":{"x":69,"y":732,"width":828,"height":12}},{"id":"097bc87d-340e-4ddf-8ff0-cd463fb8bc93","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":116,"box":{"x":69,"y":748,"width":804,"height":11}},{"id":"67dbaa97-533c-4e7e-adb5-6ce4b9ca725c","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":116,"box":{"x":70,"y":763,"width":787,"height":11}},{"id":"818754fc-dd7a-4222-8db7-73aa07d34103","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":116,"box":{"x":69,"y":778,"width":819,"height":11}},{"id":"1b0b5d90-4bd5-4fd4-9995-fa6a0bc37f89","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":116,"box":{"x":70,"y":793,"width":796,"height":11}},{"id":"e7a2c7dd-4e65-4e39-9f81-e45aa04ec975","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":116,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"7e1931b1-9a2c-4005-868e-79a3f919a050","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":116,"box":{"x":69,"y":823,"width":831,"height":11}},{"id":"24d4cfac-36c6-4ce0-b0f4-d2b4886f3a56","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":116,"box":{"x":69,"y":838,"width":776,"height":12}},{"id":"2fbff06c-d4dd-4ef6-a793-e05bdc290183","block_type":"box","text":"conditions. Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes","page_number":116,"box":{"x":69,"y":853,"width":814,"height":12}},{"id":"cfb29f07-eca8-46d2-b6a9-4620ce984999","block_type":"box","text":"limited to a particular sector or a geography, can occur. Some countries, including the United States, have adopted","page_number":116,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"7d8dd5fb-2f1b-4e1d-97b6-cbda5c4c7820","block_type":"box","text":"and/or are considering the adoption of more protectionist trade policies, a move away from the tighter financial","page_number":116,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"a4a83eb9-0c70-4f2c-9251-17261a1486a8","block_type":"box","text":"industry regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The","page_number":116,"box":{"x":70,"y":899,"width":804,"height":11}},{"id":"28092f1c-9e0f-4648-b1da-5af4868f6eb5","block_type":"box","text":"II-69","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"08ce1e60-8463-43d9-8112-1827149de859","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f3029492-1feb-428a-88ea-20db88a0345f","block_type":"box","text":"exact shape of these policies is still being considered, but the equity and debt markets may react strongly to","page_number":117,"box":{"x":69,"y":45,"width":775,"height":11}},{"id":"e711ca21-9801-47dd-a368-16a162969d80","block_type":"box","text":"expectations of change, which could increase volatility, especially if the market’s expectations are not borne out. A","page_number":117,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"d4921071-fb94-4883-80b0-20c8c989f0be","block_type":"box","text":"rise in protectionist trade policies, and the possibility of changes to some international trade agreements, could","page_number":117,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"616d4c3a-1cb5-4a17-9a7c-8b14a5fca42f","block_type":"box","text":"affect the economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition,","page_number":117,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"15be8c47-0b78-40a7-acbf-0df565926e94","block_type":"box","text":"geopolitical and other risks, including environmental and public health, may add to instability in world economies and","page_number":117,"box":{"x":68,"y":105,"width":833,"height":11}},{"id":"7eb9c826-cc33-462f-96ae-6322f5a865aa","block_type":"box","text":"markets generally. Economies and financial markets throughout the world are increasingly interconnected. As a","page_number":117,"box":{"x":69,"y":120,"width":791,"height":12}},{"id":"8f0b581b-6958-4e4d-ba06-15b35e8d3514","block_type":"box","text":"result, whether or not a Fund invests in securities of issuers located in or with significant exposure to countries","page_number":117,"box":{"x":69,"y":135,"width":793,"height":12}},{"id":"2ecc8490-0763-447f-a99d-cfb40c0b3308","block_type":"box","text":"experiencing economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be","page_number":117,"box":{"x":69,"y":150,"width":836,"height":12}},{"id":"97eb011c-eb60-41a6-98ac-71f99c2be1dd","block_type":"box","text":"negatively affected by such events.","page_number":117,"box":{"x":69,"y":166,"width":249,"height":11}},{"id":"12267784-df40-4524-975d-525a53a01d38","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":117,"box":{"x":102,"y":188,"width":795,"height":12}},{"id":"93bf0f79-c0b0-4eb3-8085-7bf8a7f18606","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":117,"box":{"x":68,"y":203,"width":830,"height":12}},{"id":"55ed299b-7b8e-407f-9548-78aa1820f24b","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":117,"box":{"x":69,"y":219,"width":796,"height":11}},{"id":"ddfcc2bc-098f-4bbb-86e5-e626538c1cf7","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":117,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"4b7320d5-7e5d-42c4-b353-b078881ee618","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":117,"box":{"x":69,"y":249,"width":833,"height":11}},{"id":"eee8e20a-2e44-45dd-be43-89cb12b44171","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets, and could adversely affect the","page_number":117,"box":{"x":68,"y":264,"width":763,"height":11}},{"id":"a0ec16ee-7d9a-478b-808b-c1feaf855117","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":117,"box":{"x":70,"y":279,"width":819,"height":11}},{"id":"cb7de3f9-e639-46ee-9218-3a589fce647c","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":117,"box":{"x":68,"y":294,"width":821,"height":11}},{"id":"dfa54a53-f0e6-4df7-a572-70f8ff22d05e","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":117,"box":{"x":68,"y":309,"width":837,"height":11}},{"id":"2061e03c-a0a4-4042-95ea-f0ff95f5c706","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":117,"box":{"x":69,"y":324,"width":795,"height":12}},{"id":"e41415c9-4210-437b-bf38-f9e4dfbaf475","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":117,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"35d58070-cbb5-4b91-a4dc-2d2a45f6c311","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":117,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"c32291ae-fdd6-408c-81cb-551b72f15d88","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":117,"box":{"x":70,"y":370,"width":816,"height":11}},{"id":"9c887b2a-dfaa-4097-8d9a-4c0eaf3befb5","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":117,"box":{"x":70,"y":385,"width":813,"height":11}},{"id":"94c35cce-55fe-4784-acbc-0444a4938461","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":117,"box":{"x":69,"y":400,"width":815,"height":11}},{"id":"1b04de29-9a9e-4fe7-980a-c64bc3568a7a","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":117,"box":{"x":69,"y":415,"width":836,"height":11}},{"id":"4d8d261a-162c-4f24-ae1b-1dfb757f3265","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":117,"box":{"x":69,"y":430,"width":820,"height":11}},{"id":"f7a40f4b-0144-4586-a5d4-13c7d7c7f04f","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":117,"box":{"x":69,"y":445,"width":785,"height":12}},{"id":"62a97df3-2d50-4622-bbc9-97220e4a1275","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":117,"box":{"x":70,"y":460,"width":832,"height":12}},{"id":"a8ce94c2-2f77-42d6-b8a5-fad00b91d363","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":117,"box":{"x":68,"y":475,"width":799,"height":12}},{"id":"783793cb-2e47-43e0-9522-6cd4d83895e8","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":117,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"355336f9-a2de-4fbb-8832-74eba1a4514d","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":117,"box":{"x":69,"y":506,"width":746,"height":11}},{"id":"8175521d-33a6-4d26-a67b-d429c7dec9d1","block_type":"box","text":"investments.","page_number":117,"box":{"x":70,"y":521,"width":89,"height":9}},{"id":"3c72d8b2-92b4-455e-9f94-c4e537bdd5b3","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":117,"box":{"x":101,"y":543,"width":802,"height":12}},{"id":"e4818269-b949-4886-a8f8-1d5c5d3cf5e3","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":117,"box":{"x":68,"y":559,"width":796,"height":11}},{"id":"3d74f963-b098-40a6-bc74-a2aa2b0334ca","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":117,"box":{"x":69,"y":574,"width":830,"height":11}},{"id":"9686782e-125a-4e5c-935b-4254dcd13350","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":117,"box":{"x":70,"y":589,"width":813,"height":11}},{"id":"113e93dd-0bdd-487b-9e1b-6360e4c28c88","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":117,"box":{"x":68,"y":604,"width":812,"height":11}},{"id":"05286e38-7bd7-4d7f-8c0d-d94ca393481e","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":117,"box":{"x":69,"y":619,"width":771,"height":11}},{"id":"96c10848-5917-4c0d-acbf-ed66f739979c","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":117,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"891aaca7-fdaa-47f5-8441-cf37ff7ddffa","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":117,"box":{"x":69,"y":650,"width":646,"height":11}},{"id":"9f4b1a24-ed6c-4be5-aa76-3180db7c01f8","block_type":"box","text":"Legal and Regulatory Risks.","page_number":117,"box":{"x":102,"y":672,"width":197,"height":11}},{"id":"9c38132d-9a5d-4517-b66b-29ec0683eac6","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":117,"box":{"x":305,"y":672,"width":583,"height":11}},{"id":"86035fd2-7d8c-4cbc-a8b0-bc9951c58624","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":117,"box":{"x":67,"y":687,"width":819,"height":11}},{"id":"eff17b74-5bec-4645-8fd7-56be0cfd4fb1","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":117,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"fc461d0f-f090-40a7-a354-4e58059c8304","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":117,"box":{"x":68,"y":717,"width":781,"height":12}},{"id":"7eaa4872-b80f-4cae-91e3-82fe771e0a44","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":117,"box":{"x":69,"y":732,"width":763,"height":12}},{"id":"c04d8736-1717-465b-b632-be1c3ea66200","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":117,"box":{"x":70,"y":748,"width":838,"height":11}},{"id":"db976c7b-8444-4060-8afb-b6ba0f7e8a6d","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":117,"box":{"x":69,"y":763,"width":781,"height":11}},{"id":"cf280bc0-f5f7-482c-8f92-0c3871c1021c","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":117,"box":{"x":69,"y":778,"width":807,"height":11}},{"id":"7210e26c-85e6-46dd-a771-193780f4c4ef","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":117,"box":{"x":69,"y":793,"width":807,"height":11}},{"id":"5d87100c-97b3-48e2-ad3c-9522f95459a2","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":117,"box":{"x":69,"y":808,"width":666,"height":11}},{"id":"c410d41c-4654-4978-bf0a-1645975e40c9","block_type":"box","text":"Tariff and Trade Policy Risks","page_number":117,"box":{"x":103,"y":831,"width":198,"height":11}},{"id":"171199a2-51e3-40ab-b49d-efc7d14093be","block_type":"box","text":".","page_number":117,"box":{"x":302,"y":838,"width":3,"height":2}},{"id":"4c2e1d18-0c5c-4462-ad5d-22695af106a2","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":117,"box":{"x":312,"y":831,"width":593,"height":11}},{"id":"1f5cae37-2372-41fc-a1d1-5f9e5a72607f","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":117,"box":{"x":68,"y":846,"width":806,"height":11}},{"id":"1190bc45-8350-4a88-9e63-10f588642022","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":117,"box":{"x":70,"y":861,"width":833,"height":11}},{"id":"7deaeae1-95f3-44a3-9f2d-5678917f4f66","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":117,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"fa8df3aa-fc2f-4f4d-ac59-f0a65ac7afd6","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":117,"box":{"x":69,"y":891,"width":814,"height":12}},{"id":"5377b923-4091-43d5-bfdc-1f0a9264b1f3","block_type":"box","text":"II-70","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"936dc85d-8690-447b-9096-9876a09f2cee","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e521ce69-1fb8-498b-971d-2d64d9f3e7bc","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":118,"box":{"x":70,"y":45,"width":821,"height":11}},{"id":"cfe947ff-ecb6-423c-af21-325ba76d23c9","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":118,"box":{"x":69,"y":60,"width":559,"height":11}},{"id":"9dfcbb1d-ad5f-4ed0-8c78-6d4f013d41bc","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":118,"box":{"x":102,"y":82,"width":796,"height":12}},{"id":"5bff243e-9a80-4bcc-b040-df12e0d31427","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":118,"box":{"x":68,"y":98,"width":809,"height":11}},{"id":"f9b936c0-82fd-448a-b99c-fa61c869c7c2","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":118,"box":{"x":70,"y":113,"width":799,"height":11}},{"id":"0739068e-d36f-4cd0-8797-cfd5354a017f","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":118,"box":{"x":69,"y":128,"width":823,"height":11}},{"id":"4781c1ec-482b-40ef-83a9-d54cc3052022","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":118,"box":{"x":69,"y":143,"width":801,"height":11}},{"id":"8f501ee6-ebad-420b-a376-64397dbc68fe","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":118,"box":{"x":69,"y":158,"width":783,"height":11}},{"id":"a6c88b11-6dd2-4d71-9481-50ec99a6855c","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":118,"box":{"x":69,"y":173,"width":753,"height":11}},{"id":"eb286834-f4ba-4a45-b2f3-247812c3edba","block_type":"box","text":"Geographic Risks","page_number":118,"box":{"x":102,"y":196,"width":123,"height":11}},{"id":"dcaa2066-3329-4be7-9e56-0ca5f60c2f0e","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":118,"box":{"x":226,"y":196,"width":671,"height":11}},{"id":"35d20978-88bf-441f-a9e0-fe3c88acbcd5","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":118,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"13263987-e34c-4390-ab27-3bfe9b5ebe76","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":118,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"e8a8dd3c-e0be-48e9-aa59-6187b4b0adad","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":118,"box":{"x":69,"y":241,"width":814,"height":11}},{"id":"fa3c4d5e-afe7-41e4-877c-99d925750e5c","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":118,"box":{"x":68,"y":256,"width":840,"height":11}},{"id":"eae7b0dd-5560-4320-ad6f-404e2022e07e","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":118,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"506facb7-09a6-4ce0-a78c-b1eb48146b41","block_type":"box","text":"Fund.","page_number":118,"box":{"x":70,"y":287,"width":36,"height":9}},{"id":"ef9c65c8-e856-427b-b337-cfe4887fcfb1","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":118,"box":{"x":102,"y":309,"width":255,"height":11}},{"id":"f03c8a1c-706f-4106-9f64-f55d0ed006d8","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":118,"box":{"x":363,"y":309,"width":508,"height":11}},{"id":"6c90d444-9d0f-4ba4-8df5-0745572535ef","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":118,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"3e59a6fd-819b-4d87-a98e-efb076c43b8a","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":118,"box":{"x":70,"y":339,"width":825,"height":12}},{"id":"a71c8f57-04d5-4bf1-80a4-3b1908adc7d2","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":118,"box":{"x":69,"y":355,"width":797,"height":11}},{"id":"747fabe5-d12c-4d09-aff1-5405f3980fe8","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":118,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"9b8b604c-472f-4bd8-8676-c06af648d64a","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":118,"box":{"x":69,"y":385,"width":837,"height":11}},{"id":"40d3adf4-ce5a-4e8b-a4a0-8abb398babe6","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":118,"box":{"x":70,"y":400,"width":800,"height":11}},{"id":"4f231355-db77-482d-ae62-80c6e2b53809","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":118,"box":{"x":69,"y":415,"width":800,"height":11}},{"id":"e38b0010-6f20-4ab2-96d5-24b4e1cdc6e3","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":118,"box":{"x":68,"y":430,"width":836,"height":11}},{"id":"8f85e177-55a7-465d-8790-24987aba43cb","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":118,"box":{"x":69,"y":446,"width":761,"height":11}},{"id":"0f05a75f-88d2-41a6-a353-b21dc87a0b04","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":118,"box":{"x":69,"y":460,"width":824,"height":12}},{"id":"cd05e0c6-ada1-4ad0-bbe7-f2060581c509","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":118,"box":{"x":69,"y":475,"width":825,"height":12}},{"id":"a6d2b362-da8f-446f-a953-9aeec5792dc4","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":118,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"4eeac211-825e-4d67-82a0-71ad368b1e68","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":118,"box":{"x":68,"y":506,"width":822,"height":11}},{"id":"62b7ccb7-ae23-47b9-8307-624021dc67ad","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":118,"box":{"x":70,"y":521,"width":817,"height":11}},{"id":"a22acbaa-8718-4809-bcde-4dde0da6f42d","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":118,"box":{"x":69,"y":536,"width":736,"height":11}},{"id":"f6864270-2974-4498-ad2b-4e525b44e75d","block_type":"box","text":"e.g.","page_number":118,"box":{"x":807,"y":537,"width":25,"height":10}},{"id":"a8f35f08-a03c-46f3-8433-9981319aee3a","block_type":"box","text":", the SOFR","page_number":118,"box":{"x":835,"y":536,"width":74,"height":10}},{"id":"19c4558d-9a6a-428c-bcdf-868b3dbe4b9b","block_type":"box","text":"for USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":118,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"d3ee900e-e3f9-4039-b771-a1c8c40d8301","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":118,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"47a69a5c-9d5b-4571-9676-575310cc9a45","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":118,"box":{"x":70,"y":581,"width":784,"height":11}},{"id":"93f2b970-b1f4-49b6-9182-00fea1b30098","block_type":"box","text":"determined.","page_number":118,"box":{"x":69,"y":597,"width":84,"height":8}},{"id":"41add4e3-ebf8-4f7a-a052-e23910ddb577","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":118,"box":{"x":102,"y":619,"width":750,"height":11}},{"id":"4fdac066-3eeb-44ec-8439-b77fcff7ed0f","block_type":"box","text":"collateralized by U.S.. SOFR is calculated based on transaction-level repo data collected from various sources. For","page_number":118,"box":{"x":69,"y":634,"width":813,"height":11}},{"id":"1f898ccd-08d1-4186-b119-c0b3280bdb9d","block_type":"box","text":"each trading day, SOFR is calculated as a volume-weighted median rate derived from such data. Because SOFR is a","page_number":118,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"8bf2512f-2afc-49c2-a9a7-87c10faae1cb","block_type":"box","text":"financing rate based on overnight secured funding transactions, it differs fundamentally from LIBOR. LIBOR is","page_number":118,"box":{"x":68,"y":664,"width":780,"height":12}},{"id":"35384a81-4229-4057-988e-5bc96ef8129f","block_type":"box","text":"intended to be an unsecured rate that represents interbank funding costs for different short-term maturities or","page_number":118,"box":{"x":70,"y":680,"width":788,"height":11}},{"id":"3c5aaaa3-37fe-411a-b67c-c91441b5850f","block_type":"box","text":"tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable tenor. Thus,","page_number":118,"box":{"x":68,"y":695,"width":798,"height":11}},{"id":"a1b7a1ba-a067-46ac-8d51-23cc5cadac6a","block_type":"box","text":"LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk. In contrast,","page_number":118,"box":{"x":70,"y":710,"width":820,"height":11}},{"id":"506bd984-367c-49e6-9cba-f6bb4a239922","block_type":"box","text":"SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is largely","page_number":118,"box":{"x":69,"y":725,"width":795,"height":11}},{"id":"db708d33-4255-4e2e-94bd-68443949a912","block_type":"box","text":"insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate, and it","page_number":118,"box":{"x":70,"y":740,"width":833,"height":11}},{"id":"6b8acd97-4d8c-4366-971a-32ff139f0933","block_type":"box","text":"has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain periods.","page_number":118,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"5db7a7bb-f049-47ff-9eec-9a9ecee716ca","block_type":"box","text":"For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform in the","page_number":118,"box":{"x":70,"y":770,"width":819,"height":12}},{"id":"e6e0374b-dbde-47df-89ed-0539056b5d07","block_type":"box","text":"same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based rates","page_number":118,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"dc5a0011-23a4-4bb4-95d1-61b4a16b5b64","block_type":"box","text":"will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April 2018.","page_number":118,"box":{"x":68,"y":801,"width":839,"height":11}},{"id":"e885a00f-8818-4873-9139-53474412a420","block_type":"box","text":"The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s history or","page_number":118,"box":{"x":68,"y":816,"width":835,"height":11}},{"id":"3f252456-3377-4195-9631-ffaf57db2034","block_type":"box","text":"otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or other","page_number":118,"box":{"x":69,"y":831,"width":796,"height":11}},{"id":"f8197754-d2ba-4abe-85b0-8bebb4941204","block_type":"box","text":"rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner that","page_number":118,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"13a353e5-e87b-449e-ba31-a652782881bd","block_type":"box","text":"is materially adverse to the interests of the Fund","page_number":118,"box":{"x":70,"y":861,"width":344,"height":11}},{"id":"bbbfa31c-bd9d-4693-bed7-67b5d0d66cba","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":118,"box":{"x":102,"y":884,"width":782,"height":11}},{"id":"31eb7d17-d5f4-4b35-9862-0d161e44c43f","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":118,"box":{"x":68,"y":899,"width":786,"height":11}},{"id":"ae7ec0d9-eac0-4209-8845-9f463d1a8fa4","block_type":"box","text":"II-71","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cecfe36b-2718-4820-9786-0b93deff4003","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"880560cf-ffb5-43ec-b167-28b00b3debeb","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":119,"box":{"x":69,"y":45,"width":746,"height":11}},{"id":"1ee6ff8a-3235-4005-82fa-1251e58cbc57","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":119,"box":{"x":70,"y":60,"width":822,"height":11}},{"id":"d630908e-2b2e-4b30-b4a7-a131693e0d58","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":119,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"ee90d55f-aa93-48a0-89db-08ce79c10ffa","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":119,"box":{"x":68,"y":90,"width":799,"height":11}},{"id":"075ef20e-e919-4c7a-8127-609e1f889016","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":119,"box":{"x":70,"y":105,"width":830,"height":11}},{"id":"cd796e53-f730-4211-bc17-49dfdb76a92a","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":119,"box":{"x":70,"y":120,"width":757,"height":11}},{"id":"d23d25d4-39a4-4105-bdce-44f5cc8cca5d","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":119,"box":{"x":69,"y":136,"width":802,"height":10}},{"id":"76b14240-0e9e-4a4e-8256-b49ea6c81608","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":119,"box":{"x":69,"y":151,"width":840,"height":11}},{"id":"b08cfb6f-3185-4d74-bf32-1569b4c70f61","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":119,"box":{"x":70,"y":166,"width":782,"height":11}},{"id":"4205b367-aee8-4e5a-8cfb-26a186c51cab","block_type":"box","text":"consequences which cannot be predicted.","page_number":119,"box":{"x":69,"y":181,"width":298,"height":11}},{"id":"32dc8b77-d210-49b2-baf4-29c89cf0c11b","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":119,"box":{"x":102,"y":203,"width":432,"height":11}},{"id":"697b99f3-1529-4020-b243-769c4144c0ef","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":119,"box":{"x":541,"y":204,"width":347,"height":11}},{"id":"e6095251-907a-4e0a-9ae3-fcbd5ea3339b","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":119,"box":{"x":69,"y":219,"width":821,"height":11}},{"id":"6c8f784b-2432-4077-8505-6c7bdb83afb5","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":119,"box":{"x":68,"y":234,"width":815,"height":11}},{"id":"a4c6b21c-4037-492e-bb9b-8499e73a6de1","block_type":"box","text":"term of the agreement.","page_number":119,"box":{"x":68,"y":249,"width":164,"height":11}},{"id":"a80a147b-8dd5-42c8-8544-108bf028a2f7","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":119,"box":{"x":101,"y":271,"width":788,"height":12}},{"id":"56b018b2-bdd9-40fc-8a49-6d47efdda8a0","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":119,"box":{"x":68,"y":287,"width":831,"height":11}},{"id":"3405a18d-6ab7-44cb-87ff-1aa7d6a0ff8f","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":119,"box":{"x":70,"y":302,"width":821,"height":11}},{"id":"586a2286-b748-4e26-8d54-309088ecedda","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":119,"box":{"x":69,"y":317,"width":790,"height":11}},{"id":"325f9dd8-ab45-4ca0-a2b0-0f3803144fc1","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":119,"box":{"x":69,"y":332,"width":827,"height":11}},{"id":"9c09bd50-59e0-4d06-b9f4-5c9b23b223bc","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":119,"box":{"x":69,"y":347,"width":788,"height":11}},{"id":"d913a483-aab1-4c29-bfb8-c88104cdb919","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":119,"box":{"x":68,"y":362,"width":522,"height":11}},{"id":"4a9412c0-f7b3-4a58-bf3e-4307dfd3c3dd","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":119,"box":{"x":102,"y":385,"width":792,"height":11}},{"id":"ca213c02-0434-42ff-b154-58995da888bc","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":119,"box":{"x":70,"y":400,"width":784,"height":11}},{"id":"3510aafe-d464-40ad-ae08-e24825c33f01","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":119,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"69d892f5-bfdf-4b95-ae5f-6f76558c38a5","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":119,"box":{"x":69,"y":430,"width":812,"height":11}},{"id":"93d6789d-947d-40ba-9e39-f46cd8c1b075","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":119,"box":{"x":68,"y":445,"width":770,"height":12}},{"id":"697a912b-a503-4736-9c24-fc9b9400263c","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":119,"box":{"x":69,"y":460,"width":802,"height":12}},{"id":"9e8aa67f-e51c-4b74-8217-be7467330a09","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":119,"box":{"x":70,"y":475,"width":430,"height":12}},{"id":"530fd7a9-5a07-4484-a253-994baf1018b2","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":119,"box":{"x":102,"y":498,"width":759,"height":11}},{"id":"5fcb5edc-46d8-4ecd-9d24-a3030dcb9d43","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":119,"box":{"x":70,"y":514,"width":765,"height":11}},{"id":"c18a7fcc-25eb-4214-8ed7-cedd3711c3ae","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":119,"box":{"x":69,"y":528,"width":835,"height":12}},{"id":"3ce90b1b-d2b0-4a24-b1a2-1eeb85faf7b3","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":119,"box":{"x":69,"y":543,"width":799,"height":11}},{"id":"80f78531-dbe6-42d0-933c-23c65b1c5af8","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":119,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"50866c45-398b-4fb9-966c-c8f83c3ffd94","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":119,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"54aacb0b-f0d3-4852-88a5-e80730549084","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":119,"box":{"x":70,"y":589,"width":831,"height":11}},{"id":"5d3e7a13-f73f-461c-b6e6-ee581ca83ff1","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":119,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"dced638b-76e7-480e-8f46-38706089b28a","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":119,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"dd0d4efa-5e72-4146-a09f-9bd0bafa9eea","block_type":"box","text":"or by another authorized securities depository.","page_number":119,"box":{"x":69,"y":634,"width":329,"height":11}},{"id":"4adf991e-2a9a-42c1-9f0d-dcf8dff988db","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":119,"box":{"x":102,"y":657,"width":770,"height":11}},{"id":"cad61d46-375f-4ebc-a4b0-90689d66d229","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":119,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"c5e755d2-c3fc-4d21-880c-f64612467914","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":119,"box":{"x":69,"y":687,"width":819,"height":11}},{"id":"c1cc712d-b434-4da1-b659-511d7c59fe14","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":119,"box":{"x":69,"y":702,"width":778,"height":12}},{"id":"5fb63efd-10f5-494e-b37b-a92b246d7d48","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":119,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"260b6e10-42b9-42d5-b42b-5a34d23c487c","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":119,"box":{"x":70,"y":733,"width":810,"height":11}},{"id":"3e8f1fff-f6f6-4b5a-88ce-e2ae2a64fb9e","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":119,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"29c60382-488a-4a79-83cd-186c27036cc7","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":119,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"5e509ed1-1bf2-4e78-93ed-b516ecf07fa8","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":119,"box":{"x":69,"y":778,"width":817,"height":11}},{"id":"47aca722-d8d6-42bc-ad13-1ea3e85e974b","block_type":"box","text":"the repurchase price.","page_number":119,"box":{"x":68,"y":793,"width":151,"height":11}},{"id":"62fbca65-f75e-44a7-b7a6-67979fa7fa2a","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":119,"box":{"x":102,"y":816,"width":805,"height":11}},{"id":"9fb5d6b6-6b6d-41b7-8494-f792e4a5a55c","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":119,"box":{"x":70,"y":831,"width":837,"height":11}},{"id":"f440ea02-8fd9-4fa7-8ef6-43845e506557","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":119,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"5ce01bd1-be8f-4689-b6aa-cafbada1c282","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":119,"box":{"x":69,"y":861,"width":767,"height":11}},{"id":"6ff678c4-14cf-4c61-8e7d-94d72a52b08a","block_type":"box","text":"strategies without the repurchase obligation.","page_number":119,"box":{"x":69,"y":876,"width":317,"height":11}},{"id":"6deb733f-abe9-4b02-b433-247399ed64a0","block_type":"box","text":"II-72","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d38fd26-76f5-4f90-ba4a-9da1afffe98f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86dc567b-8a3e-48ca-bec0-f5bab90ba326","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":120,"box":{"x":101,"y":45,"width":782,"height":11}},{"id":"789bddd1-41a0-4ac2-aa1a-0002941dfff7","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":120,"box":{"x":69,"y":60,"width":776,"height":11}},{"id":"129af7b5-a6a6-45a5-8848-8751b63df3ea","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":120,"box":{"x":69,"y":75,"width":799,"height":11}},{"id":"d4f30b24-77e3-4b79-9b94-fc9617ddc70e","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":120,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"850d54c5-e642-458d-a32b-6b7aee1a3e97","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":120,"box":{"x":68,"y":105,"width":825,"height":11}},{"id":"f454ebe1-c84b-4b82-89ef-02bbbefa657a","block_type":"box","text":"status of an unsecured creditor of the counterparty (i.e., the position the Fund would normally be in if it were to hold,","page_number":120,"box":{"x":69,"y":120,"width":833,"height":11}},{"id":"7c6aee79-ffd7-43ac-b71d-f7315e4bca2f","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":120,"box":{"x":70,"y":135,"width":813,"height":12}},{"id":"67b179bb-24c7-4406-9461-08615eb1b55d","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":120,"box":{"x":68,"y":150,"width":816,"height":12}},{"id":"133f607b-8fb1-41ac-b72d-e4116b6ddea2","block_type":"box","text":"and income involved in the transaction.","page_number":120,"box":{"x":69,"y":166,"width":278,"height":9}},{"id":"245631e3-f11b-4778-ae86-fc08273217b1","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":120,"box":{"x":102,"y":188,"width":800,"height":12}},{"id":"4c84d110-444a-4e97-ab5e-f0509c154cbe","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":120,"box":{"x":68,"y":203,"width":840,"height":12}},{"id":"2f4f4846-812e-42a6-a3fd-6e2f878ce8e9","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":120,"box":{"x":69,"y":218,"width":814,"height":12}},{"id":"9b06a548-0be5-4d71-9a70-6a49b66ea479","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":120,"box":{"x":68,"y":234,"width":790,"height":11}},{"id":"e84d2488-1ddb-46e1-8bfc-a223f6fba5cb","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":120,"box":{"x":69,"y":249,"width":818,"height":11}},{"id":"a9a372ef-9240-45c4-a15c-de0016464c5e","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":120,"box":{"x":68,"y":264,"width":783,"height":11}},{"id":"3a64efc2-8df1-4c98-9825-6fff327ebb5e","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":120,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"7a039b20-1ce2-4cdb-8c7a-7d329674ba54","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":120,"box":{"x":69,"y":294,"width":800,"height":11}},{"id":"1b962543-59d5-4c8a-8880-022515c4a756","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":120,"box":{"x":69,"y":309,"width":796,"height":11}},{"id":"cc2d943e-477e-40d3-abc4-bfdf1fec427c","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":120,"box":{"x":69,"y":324,"width":834,"height":12}},{"id":"e4582463-ea8a-484e-9d6d-d8c88d0383dd","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":120,"box":{"x":68,"y":339,"width":824,"height":12}},{"id":"2d7f2286-bb53-4e1e-8c83-a26933647f97","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":120,"box":{"x":69,"y":355,"width":279,"height":11}},{"id":"5d0e3084-a964-4110-a8f4-0ea07434e981","block_type":"box","text":"Restricted Securities.","page_number":120,"box":{"x":102,"y":377,"width":158,"height":9}},{"id":"567ffe04-c907-4dec-9bbd-bd3bbe49e0bf","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":120,"box":{"x":265,"y":377,"width":617,"height":12}},{"id":"86d34052-536f-4db1-8518-3fe615ac25b7","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":120,"box":{"x":69,"y":392,"width":801,"height":12}},{"id":"be852e41-90be-4126-a5fa-757c90e052b6","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":120,"box":{"x":69,"y":408,"width":808,"height":11}},{"id":"3a9a6f0c-f966-4804-a623-264668263f3a","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":120,"box":{"x":70,"y":423,"width":802,"height":11}},{"id":"da71872f-f281-44c4-8f86-9e6e984e8cdc","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":120,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"8efa55d5-29eb-4cc0-8680-e0f755bcbad4","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":120,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"87bd6ab5-9f00-4ee0-883c-91ceb5f3e3f2","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":120,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"97246cd0-2056-4ea0-9383-a102dd37fb6d","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":120,"box":{"x":69,"y":483,"width":821,"height":11}},{"id":"11f46b3b-35d8-44ca-8eb6-f2183867f95a","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":120,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"34292973-9178-46c7-9c4a-d08039974496","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":120,"box":{"x":70,"y":513,"width":824,"height":12}},{"id":"b867467a-5482-4bf9-8f07-04e3ed97cdca","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":120,"box":{"x":69,"y":528,"width":834,"height":12}},{"id":"9428f18a-8fce-4acd-858f-7d54eda48498","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":120,"box":{"x":69,"y":543,"width":769,"height":12}},{"id":"1bf48df3-9610-4f07-aa4f-f90e4e86b4ca","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":120,"box":{"x":69,"y":559,"width":838,"height":11}},{"id":"fff71b2b-1c77-4147-b4ac-e693ee3bdc71","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":120,"box":{"x":68,"y":574,"width":805,"height":11}},{"id":"5ccd6797-4a39-4377-bc6c-cbe032cb5ef1","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":120,"box":{"x":68,"y":589,"width":840,"height":11}},{"id":"3a6a2a09-2bab-42d4-ab66-4330dcd2cfb0","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":120,"box":{"x":70,"y":604,"width":815,"height":11}},{"id":"cb939300-8ec1-49c6-9dc8-40062806947b","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":120,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"4b65079c-b362-4932-a225-aec623548a37","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":120,"box":{"x":69,"y":634,"width":803,"height":11}},{"id":"f917e275-08a8-4504-a6ee-19ba1363dba8","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":120,"box":{"x":70,"y":649,"width":830,"height":12}},{"id":"6b732eee-8b34-4dc7-8709-a731734b31d0","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":120,"box":{"x":69,"y":664,"width":817,"height":12}},{"id":"9cf0eb5b-044c-4dd8-8d29-b8ae467feb4a","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":120,"box":{"x":68,"y":680,"width":825,"height":11}},{"id":"a04e48e0-8532-4ccc-8303-118f687b9657","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":120,"box":{"x":69,"y":695,"width":777,"height":11}},{"id":"0b698704-5372-4d2b-ab6d-b6b80b6ed76e","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":120,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"9db2b72d-8ce7-4dab-b32c-e1a9d9bf5966","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":120,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"5504c501-bf03-4dd1-b9d6-9698767f2a17","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":120,"box":{"x":69,"y":740,"width":828,"height":11}},{"id":"cf07a084-489a-4883-ada5-0adee8589f29","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":120,"box":{"x":69,"y":755,"width":836,"height":11}},{"id":"5838b56c-efe5-45f7-9f7c-7ef99fb6072f","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":120,"box":{"x":68,"y":770,"width":819,"height":12}},{"id":"02e4086e-4ef6-492f-93d3-849344723ba2","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":120,"box":{"x":70,"y":786,"width":822,"height":11}},{"id":"67978df4-b71f-4f18-a7a3-da28a03d7912","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":120,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"a174f4a7-5fe8-402a-ae80-d15652259741","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":120,"box":{"x":70,"y":816,"width":780,"height":11}},{"id":"602e06fc-7c37-48ad-bc92-d91fc66a3630","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":120,"box":{"x":70,"y":831,"width":773,"height":11}},{"id":"7f816421-43f8-40ce-800e-01dbdf03e8eb","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":120,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"37d7718d-d5b3-4d09-8f84-ca442c1b055a","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":120,"box":{"x":69,"y":861,"width":816,"height":11}},{"id":"aded7b33-a439-42b6-bcaa-56dc280ea8fa","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":120,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"b0fc46d5-91b3-49b8-8c4b-ef5bf0a4ceaf","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":120,"box":{"x":69,"y":891,"width":831,"height":12}},{"id":"a2f8a60a-02a2-4b0e-95b3-762fefec0253","block_type":"box","text":"II-73","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1ba643e5-cea9-4af5-8682-5d54015e94c4","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc7ec86a-8366-4a16-8d78-9856d507f30b","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":121,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"e5a98d4c-f280-434a-8022-b5cb68d9b2d9","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":121,"box":{"x":69,"y":60,"width":647,"height":11}},{"id":"0589da09-669c-4251-8126-8729bc6c8b5c","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":121,"box":{"x":102,"y":83,"width":714,"height":11}},{"id":"352f8ce1-a56c-4b4b-be40-edddd291d2d3","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":121,"box":{"x":70,"y":98,"width":823,"height":11}},{"id":"ccb2ba2a-2a74-4d03-8867-eccf4d93d1f2","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":121,"box":{"x":70,"y":113,"width":826,"height":11}},{"id":"0a758eaa-2f0f-447d-927d-a782bd304d35","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":121,"box":{"x":70,"y":128,"width":830,"height":11}},{"id":"1f0b1566-072f-4189-9307-f80972b01caa","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":121,"box":{"x":69,"y":143,"width":812,"height":11}},{"id":"12e80d94-ff77-49c0-9c79-cf8e3d1f9b0f","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":121,"box":{"x":69,"y":158,"width":787,"height":11}},{"id":"b5d45953-9b8e-4157-a294-ddf2ac48823d","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":121,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"537479a7-8fdb-4c07-8984-345272895cd8","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":121,"box":{"x":69,"y":188,"width":759,"height":12}},{"id":"8dde3722-3681-4a40-b649-cf71f44ee20d","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":121,"box":{"x":70,"y":203,"width":833,"height":12}},{"id":"6c83e706-27ff-49c6-93ac-4ebde687b435","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":121,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"7322ba80-dec6-4642-b44b-9f93030bb7ce","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":121,"box":{"x":69,"y":234,"width":827,"height":11}},{"id":"e1a838d3-f2f4-471b-994f-02b491c94700","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":121,"box":{"x":70,"y":249,"width":804,"height":11}},{"id":"73a6fe57-8278-47fd-87c3-39f9635afd70","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":121,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"8f58de10-5766-4b70-b34a-fde140b4cd4f","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":121,"box":{"x":70,"y":279,"width":835,"height":11}},{"id":"7d927fbb-6e0d-40f7-99df-a6545c766ef4","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":121,"box":{"x":69,"y":294,"width":768,"height":11}},{"id":"3f82680c-73ba-4643-a6ac-a69c15b1f12d","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":121,"box":{"x":70,"y":309,"width":815,"height":11}},{"id":"66f177e4-3c1c-4406-9ba3-55fae3e55376","block_type":"box","text":"especially as that Fund grows in size.","page_number":121,"box":{"x":69,"y":325,"width":264,"height":11}},{"id":"e0763aea-ec97-4405-9a6c-b4dd6c83b391","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":121,"box":{"x":101,"y":347,"width":762,"height":11}},{"id":"47c42cd7-08d1-4e3e-81c1-b293c65e501e","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":121,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"96c3b999-a9b1-485d-9127-4ad4abbc64b4","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":121,"box":{"x":69,"y":377,"width":751,"height":12}},{"id":"995cb38f-1ec9-43e1-9b59-44b31db3fdb1","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":121,"box":{"x":70,"y":392,"width":755,"height":12}},{"id":"46e6695f-b4f3-4f7c-a491-d8a0aee0676b","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":121,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"7797846b-878d-42ed-916a-cf52e8c47d7c","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":121,"box":{"x":70,"y":423,"width":835,"height":11}},{"id":"ba0096f6-c610-436c-89f6-ed47c2b58402","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":121,"box":{"x":68,"y":438,"width":766,"height":11}},{"id":"1371e8de-5a14-401b-bb4a-1c197544c314","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":121,"box":{"x":69,"y":453,"width":792,"height":11}},{"id":"31b2bf1f-1747-4ad7-a7f1-618104460362","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":121,"box":{"x":70,"y":468,"width":821,"height":11}},{"id":"08bef1a0-38e4-495b-af87-550f47993dc7","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":121,"box":{"x":70,"y":483,"width":771,"height":11}},{"id":"5f954549-ae4d-45f6-a8a1-bbd18eef5fc8","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":121,"box":{"x":69,"y":498,"width":826,"height":11}},{"id":"9be2f1b4-05fd-4ea8-845f-6f202f76ae7e","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":121,"box":{"x":69,"y":513,"width":790,"height":11}},{"id":"0e991f6b-f746-48d5-8727-7c2b534bc405","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":121,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"df84585e-f2b6-42b5-b22a-c723f9ff09a0","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":121,"box":{"x":69,"y":543,"width":810,"height":12}},{"id":"55e93aa1-f8c2-4ef7-a6ea-bb543b46bf68","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":121,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"4e162098-0da9-4bfd-ac67-c5cb9b8515c7","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":121,"box":{"x":68,"y":574,"width":839,"height":11}},{"id":"3c41e87a-952b-4210-9011-bde52d1ef3dc","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":121,"box":{"x":68,"y":589,"width":514,"height":11}},{"id":"e5c5c93c-1ad4-4778-be52-a5354ecf3422","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":121,"box":{"x":102,"y":612,"width":385,"height":11}},{"id":"2d3d33d9-5285-4363-b6c4-4b0fc40b4d6b","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":121,"box":{"x":102,"y":634,"width":246,"height":11}},{"id":"2990e99c-a5cc-45b9-8180-0eca14a6b611","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":121,"box":{"x":354,"y":634,"width":548,"height":12}},{"id":"3446024e-a099-4f03-b938-fdba7f1b1dae","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":121,"box":{"x":68,"y":650,"width":830,"height":11}},{"id":"4687e3eb-1466-40ff-af68-d35fd44d8a9c","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":121,"box":{"x":68,"y":665,"width":793,"height":11}},{"id":"be3cbd10-0d08-4808-89d3-1eb356469fdf","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":121,"box":{"x":69,"y":680,"width":784,"height":11}},{"id":"e0926917-3d10-4bc9-b2c2-b3954c58905f","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":121,"box":{"x":70,"y":695,"width":591,"height":11}},{"id":"1ead52c3-f2dd-4e4e-aaf4-2a11aa7eb398","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":121,"box":{"x":101,"y":717,"width":730,"height":12}},{"id":"f419daeb-5f41-40d6-bb93-d94ea98cfd7a","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":121,"box":{"x":70,"y":733,"width":822,"height":11}},{"id":"003e0fa7-a46d-4654-b80e-3bdc7a793130","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":121,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"9d0f215f-361a-40c1-a726-e902dd25c77b","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":121,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"cda25e76-4f17-478c-a7d7-033a0224c77a","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":121,"box":{"x":69,"y":778,"width":830,"height":11}},{"id":"c217ccd7-01b0-4bef-9cf1-a7ae1c687d23","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":121,"box":{"x":69,"y":793,"width":354,"height":11}},{"id":"e25c4da9-9ba4-4936-b62a-9c72f4b9b992","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":121,"box":{"x":102,"y":816,"width":769,"height":11}},{"id":"233716ca-779f-49a0-99ea-0ec0706a8979","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":121,"box":{"x":70,"y":831,"width":815,"height":11}},{"id":"1402bfd7-aefc-4467-b705-97ee74282d08","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":121,"box":{"x":70,"y":846,"width":782,"height":11}},{"id":"f1c9353f-7adc-435b-8297-158fea02bfa6","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":121,"box":{"x":69,"y":861,"width":449,"height":11}},{"id":"43339437-2ad9-439a-aa78-663d07fbc402","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":121,"box":{"x":102,"y":884,"width":794,"height":11}},{"id":"9f56c0ee-6cc6-45f3-89d5-f422a77e7c8d","block_type":"box","text":"similar financing transactions (e.g., recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":121,"box":{"x":69,"y":899,"width":841,"height":11}},{"id":"c5ce0533-7c8d-4f96-ad1e-73b4d2c1f992","block_type":"box","text":"II-74","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5be8d240-fb0b-4e5f-b26d-2c3a700d9cb9","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"50470cde-f966-451a-84dd-73df3a6c5105","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":122,"box":{"x":68,"y":45,"width":813,"height":11}},{"id":"254c2c1e-b48e-486b-bdfa-4197693cff3a","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":122,"box":{"x":70,"y":60,"width":789,"height":11}},{"id":"43f1d723-282f-4071-a9fc-475b7a7d6769","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":122,"box":{"x":69,"y":75,"width":836,"height":11}},{"id":"5dcf98db-c4c0-4991-931d-a6d9b08bcebf","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":122,"box":{"x":70,"y":90,"width":824,"height":11}},{"id":"169875c7-2114-4165-9c3a-40a529fcea04","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":122,"box":{"x":68,"y":105,"width":758,"height":11}},{"id":"f55a15fe-1ede-4fa7-86c1-96130a1d2e47","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":122,"box":{"x":69,"y":120,"width":822,"height":12}},{"id":"b728cc2c-3ca0-479b-8c7e-701102afb026","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":122,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"038d1c7e-006e-4a75-b8e7-0f27748d52d4","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":122,"box":{"x":69,"y":150,"width":538,"height":12}},{"id":"a67770dd-664b-421a-b5b9-807804493723","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":122,"box":{"x":101,"y":173,"width":780,"height":11}},{"id":"5a9fba16-4832-4691-9add-634982c94341","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":122,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"262b8167-e726-4e9f-b07e-46c3a73b531a","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":122,"box":{"x":68,"y":203,"width":775,"height":12}},{"id":"53620f50-0a88-44e2-b97c-39c221a50427","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":122,"box":{"x":68,"y":218,"width":754,"height":12}},{"id":"651db74c-836e-4ded-b1b4-fbf4cae0c7e9","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":122,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"325f37fb-4619-44bf-93b8-4f6cb332d03e","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":122,"box":{"x":68,"y":249,"width":783,"height":11}},{"id":"434fa2ab-3ff0-42a4-acd1-7f42c0b3e4a2","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":122,"box":{"x":69,"y":264,"width":800,"height":11}},{"id":"e1df4229-a1f3-474a-8205-4b120198d124","block_type":"box","text":"amounts to be received under such agreements.","page_number":122,"box":{"x":69,"y":279,"width":345,"height":11}},{"id":"8e41a11e-e24a-49c7-b26a-b0219b7bdd29","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":122,"box":{"x":102,"y":302,"width":316,"height":11}},{"id":"de879acf-df56-402b-ba8e-3bde5a1650e6","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":122,"box":{"x":424,"y":302,"width":481,"height":11}},{"id":"e3200c45-ad9a-4d3e-b7e0-f9ff505c27c7","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":122,"box":{"x":68,"y":317,"width":822,"height":11}},{"id":"48ade28a-7155-4f6b-9a5a-8c041221962b","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":122,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"58f19cde-a573-4218-b95f-945c72d552f2","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":122,"box":{"x":69,"y":347,"width":817,"height":11}},{"id":"67def4ed-03e4-41ac-b236-3a049ba9e91e","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":122,"box":{"x":70,"y":362,"width":833,"height":11}},{"id":"4ebb067d-4edc-4a66-8318-d062857f25f7","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":122,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"4cfac2a8-e693-4d1c-9635-9425f90e6b0a","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":122,"box":{"x":70,"y":392,"width":821,"height":12}},{"id":"dad1c902-1adb-4fec-87f1-bfcf882df270","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":122,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"14bfa412-a8b0-4c26-be17-e25be4d1b6e4","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":122,"box":{"x":69,"y":423,"width":777,"height":11}},{"id":"1743283b-419e-42e3-94ca-072cc9bdd3ad","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":122,"box":{"x":69,"y":438,"width":839,"height":11}},{"id":"adb72db6-32db-498b-b00a-dd94c69d73a5","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":122,"box":{"x":68,"y":453,"width":708,"height":11}},{"id":"9c9dfae6-57ad-4f22-87d5-032c9a13e1a2","block_type":"box","text":"Rule 144A Securities.","page_number":122,"box":{"x":102,"y":476,"width":159,"height":8}},{"id":"b47cfd62-05f1-4124-98ad-58b709e2117e","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":122,"box":{"x":266,"y":475,"width":560,"height":12}},{"id":"b820d2bf-de6f-4e4d-b8f8-2c9918ffa31b","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":122,"box":{"x":70,"y":491,"width":741,"height":11}},{"id":"800da25f-d2ea-44c5-b315-a0cec9a45633","block_type":"box","text":"Securities Lending.","page_number":122,"box":{"x":101,"y":513,"width":139,"height":11}},{"id":"bf538952-b179-45e6-b3d4-438adbc8ffa9","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":122,"box":{"x":247,"y":513,"width":645,"height":11}},{"id":"698cb334-db86-479a-aced-8a1e58e15c6d","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":122,"box":{"x":69,"y":528,"width":825,"height":12}},{"id":"349885cf-f4ec-4932-b1ee-9ec0b8b2f4fa","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":122,"box":{"x":69,"y":543,"width":817,"height":11}},{"id":"03abe4a5-93ff-442e-bbfa-efc05f190e54","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":122,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"30dfa731-c2ca-4faf-b5b7-9650d064112d","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":122,"box":{"x":68,"y":574,"width":827,"height":11}},{"id":"e4c5f064-b4ff-402d-9ec2-35f8c84b2015","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":122,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"d7aae32d-d1f2-4a70-ab5d-bffcf934a905","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":122,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"eeab7850-8d2b-4638-a3f6-ce16f99cd141","block_type":"box","text":"the securities were not on loan.","page_number":122,"box":{"x":68,"y":619,"width":225,"height":9}},{"id":"124ae95e-af7c-4f71-846e-d9c71b33cab4","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":122,"box":{"x":101,"y":642,"width":799,"height":11}},{"id":"69e73cbe-db7e-4d61-8ec4-61e0d508c101","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":122,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"6701452f-294f-4dda-82b3-d0b4f3663842","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":122,"box":{"x":69,"y":672,"width":824,"height":11}},{"id":"be92aa11-c05a-49f9-b909-00f8cfe19179","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":122,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"0e3c6e85-3345-4003-a2c5-6c5bde780a91","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":122,"box":{"x":69,"y":702,"width":810,"height":11}},{"id":"52f78515-fc5f-4c32-adac-e583c90d25be","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":122,"box":{"x":70,"y":717,"width":789,"height":12}},{"id":"68bb57e3-ab82-4ec5-a962-330d8387f2a8","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":122,"box":{"x":70,"y":732,"width":643,"height":12}},{"id":"ebe183f6-8773-4616-b8cb-b4789d826f58","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (i.e., the risk of losses resulting","page_number":122,"box":{"x":102,"y":755,"width":791,"height":11}},{"id":"bf92d52c-4b1f-4b78-8ab3-3d630b512914","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (i.e., the risk of a mismatch between the return","page_number":122,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"ee1a77bf-d428-42c7-a3f0-e7320c9dc614","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":122,"box":{"x":69,"y":785,"width":794,"height":12}},{"id":"a45392ef-4903-43cf-ae4c-ef3e8367a612","block_type":"box","text":"i.e.","page_number":122,"box":{"x":865,"y":786,"width":20,"height":8}},{"id":"6a31528f-f5b7-4b46-9d50-cfcf1b2fdeba","block_type":"box","text":",","page_number":122,"box":{"x":888,"y":793,"width":2,"height":3}},{"id":"67503b2e-50e5-46b1-8c10-91cb96c41baf","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":122,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"3364f27c-e81a-4d22-b64b-e8582b0f6534","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":122,"box":{"x":69,"y":816,"width":837,"height":11}},{"id":"deaaadd0-a60f-4869-b190-dd0205eda637","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":122,"box":{"x":69,"y":831,"width":822,"height":11}},{"id":"f7418c19-4f56-45cb-95dd-524c424d9677","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":122,"box":{"x":68,"y":846,"width":811,"height":11}},{"id":"793d1865-91fb-483a-8380-d2af3a8ed998","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":122,"box":{"x":70,"y":861,"width":820,"height":11}},{"id":"203cd10c-fb39-4059-8a09-7b5daedc4f14","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":122,"box":{"x":69,"y":876,"width":790,"height":11}},{"id":"53661de4-554c-40c2-a262-dfbcdbb3cc9b","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":122,"box":{"x":70,"y":891,"width":820,"height":12}},{"id":"d04b1504-90f5-4c89-a574-a91d20d59c55","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":122,"box":{"x":70,"y":906,"width":805,"height":12}},{"id":"9ae9991d-9b68-49e5-a349-68da8410d611","block_type":"box","text":"II-75","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fc5654a8-fea0-45a2-8008-ddd07a84054d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d485337c-7b88-46ee-a365-80be48b631d4","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":123,"box":{"x":69,"y":45,"width":816,"height":11}},{"id":"e9b2202d-633a-4d8a-98af-d62a6b854edc","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":123,"box":{"x":69,"y":60,"width":775,"height":11}},{"id":"98470c82-3c4f-4f17-94be-85c676388bd2","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":123,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"75ed3909-d769-4fbf-b5f2-811952aec440","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":123,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"ffb21705-b5e1-484a-9ffe-3263a2986674","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":123,"box":{"x":70,"y":105,"width":837,"height":11}},{"id":"765b2ca4-09a8-4e24-b4e8-04171e668330","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":123,"box":{"x":70,"y":120,"width":808,"height":12}},{"id":"caf0bdbb-79f3-4d65-afa4-b5afda376c08","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":123,"box":{"x":69,"y":135,"width":839,"height":11}},{"id":"d396e1bc-9192-4ec4-b317-637ec93f29a3","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":123,"box":{"x":70,"y":151,"width":832,"height":11}},{"id":"baaf54b5-bca9-4a63-bea3-02e4b3440f7c","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":123,"box":{"x":69,"y":166,"width":801,"height":11}},{"id":"5c5f905a-6be7-414d-9ff9-01c6b3a68177","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":123,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"0a87e2c7-dc14-4a98-a0c7-ff95d1ad702c","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":123,"box":{"x":70,"y":196,"width":823,"height":11}},{"id":"5812c790-a9b3-4459-b587-24ebbb1f745d","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":123,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"aac69332-29db-4761-a591-d5ed713da585","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":123,"box":{"x":70,"y":226,"width":814,"height":11}},{"id":"1f35ab0d-a09a-46b9-9a42-18fcc3f6458f","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":123,"box":{"x":68,"y":241,"width":787,"height":11}},{"id":"79458a00-a230-4d96-ae23-530939e92904","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":123,"box":{"x":69,"y":256,"width":828,"height":12}},{"id":"30c068db-3782-4756-8dea-4f345cdc71a0","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":123,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"1a5cbbdc-f7ea-495e-aaca-c6b1721efeee","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":123,"box":{"x":69,"y":286,"width":821,"height":12}},{"id":"bfcd1525-7f5b-4a66-b8be-0e7dc751a636","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":123,"box":{"x":69,"y":302,"width":731,"height":11}},{"id":"91629f8d-5814-4422-88ab-5b8038100b28","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":123,"box":{"x":102,"y":324,"width":800,"height":12}},{"id":"a86dc01b-7f98-479a-ac7a-d391611671bc","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":123,"box":{"x":68,"y":339,"width":802,"height":12}},{"id":"2b4a2148-5d85-4a9f-918a-98b7f3f5dfe4","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":123,"box":{"x":69,"y":355,"width":783,"height":11}},{"id":"d747736f-a1f0-46bb-a143-092248885259","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":123,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"31b1ac8d-0c43-4b8d-9cfa-f9f81a8957dd","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":123,"box":{"x":70,"y":385,"width":747,"height":11}},{"id":"7dc1919e-a7a3-4b0b-8095-120176d5f57d","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":123,"box":{"x":69,"y":400,"width":806,"height":11}},{"id":"14f1cc5a-4463-427a-8a4b-5d294a959bd5","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":123,"box":{"x":69,"y":415,"width":808,"height":11}},{"id":"2f03e355-6413-49c4-a48b-b87d365e4850","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":123,"box":{"x":69,"y":430,"width":839,"height":11}},{"id":"8f917514-a55f-4459-8a2c-d41b5c4a8c7f","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":123,"box":{"x":69,"y":445,"width":827,"height":11}},{"id":"5177b23d-82f4-4d73-9440-190d897cd641","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":123,"box":{"x":69,"y":460,"width":794,"height":11}},{"id":"357faa4a-2134-451e-a2cb-d386dbc66010","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":123,"box":{"x":69,"y":475,"width":371,"height":12}},{"id":"6abd74e9-a245-43be-953c-e0624fc431b4","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":123,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"ecaf57aa-4536-438c-b4bb-58c5a423bc83","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":123,"box":{"x":70,"y":513,"width":808,"height":12}},{"id":"bfba1bf4-9ead-49fe-915f-91751ebb55c5","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":123,"box":{"x":69,"y":529,"width":784,"height":10}},{"id":"2cb16195-c8f0-418a-a2a9-51e22875ea81","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":123,"box":{"x":69,"y":543,"width":833,"height":12}},{"id":"ed560f71-a020-404d-b11c-d267ce5997a3","block_type":"box","text":"the current expected compliance date.","page_number":123,"box":{"x":68,"y":559,"width":273,"height":11}},{"id":"0b66632c-2587-4b5c-8c5c-bef8e11df041","block_type":"box","text":"Short Sales.","page_number":123,"box":{"x":101,"y":581,"width":89,"height":9}},{"id":"db839ab4-976f-4934-a9bd-eabf3280d0e9","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":123,"box":{"x":196,"y":581,"width":696,"height":12}},{"id":"efcf819f-f39a-4a0c-80df-cd6fe93b6179","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":123,"box":{"x":68,"y":596,"width":821,"height":12}},{"id":"836f23c1-ca00-4135-9301-f1e56cd017cf","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":123,"box":{"x":69,"y":612,"width":778,"height":11}},{"id":"bf158e1f-8dbe-4a97-9713-8a9833df500a","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":123,"box":{"x":70,"y":627,"width":831,"height":11}},{"id":"2e9897ef-8af7-402a-b036-8c058cee00d1","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":123,"box":{"x":69,"y":642,"width":837,"height":11}},{"id":"035aa650-6f9f-4d62-b655-5346580eca1f","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":123,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"83298941-1a6d-4660-bff4-edfae5859aa9","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":123,"box":{"x":70,"y":672,"width":829,"height":11}},{"id":"639c73be-0c5d-4547-96da-c5f8b45f1c79","block_type":"box","text":"securities to the lender of the securities.","page_number":123,"box":{"x":69,"y":687,"width":289,"height":9}},{"id":"c9bf062f-51ba-4ed5-abbf-2ab449f2af5f","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":123,"box":{"x":101,"y":710,"width":772,"height":11}},{"id":"f214afcc-58e9-48a1-a8c2-25ac74d2c6a1","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":123,"box":{"x":69,"y":725,"width":795,"height":11}},{"id":"235b8a24-fd25-4d73-a41c-ca6c9dbd48db","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":123,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"83d2e656-658c-40a7-b337-152e2f14559b","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":123,"box":{"x":69,"y":755,"width":830,"height":11}},{"id":"69308627-7189-45b0-8f5f-4428d8cfcea6","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":123,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"d0704c88-69b7-46ff-b372-e01982da42c5","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":123,"box":{"x":69,"y":786,"width":770,"height":11}},{"id":"b39dad27-aa6a-4ee3-a606-58fb1bd67e42","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":123,"box":{"x":70,"y":801,"width":568,"height":11}},{"id":"9b81c71f-f52f-4363-b9fd-ad5540bfb11d","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":123,"box":{"x":102,"y":823,"width":806,"height":12}},{"id":"f3ef7eea-1015-4728-acdf-a0f60e5dfabb","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":123,"box":{"x":69,"y":838,"width":817,"height":11}},{"id":"e4a46e19-7d8e-4a1f-8a0e-77a9c877b169","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":123,"box":{"x":68,"y":853,"width":819,"height":12}},{"id":"e219a33c-c33f-4be7-9b8b-d68180d9d4c6","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":123,"box":{"x":69,"y":869,"width":758,"height":11}},{"id":"372bc524-7143-49d7-a970-28d7d6033612","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":123,"box":{"x":69,"y":884,"width":817,"height":11}},{"id":"84435ca5-1bad-44e6-92f5-dd8519879724","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":123,"box":{"x":69,"y":899,"width":800,"height":11}},{"id":"92b4bbac-ff22-4c08-adf8-b4cfc6f31d66","block_type":"box","text":"II-76","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0433325d-f9a5-43aa-ae49-b4a0cbc0f307","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"633d057a-ddbc-4358-a05a-f01a8cd6d78d","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":124,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"4586bbb5-ae96-49c1-9f17-4c528acebff4","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":124,"box":{"x":68,"y":60,"width":821,"height":11}},{"id":"421cd4b5-8cff-430c-8b57-e57df25177dc","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":124,"box":{"x":69,"y":75,"width":640,"height":11}},{"id":"46c889a8-5bf7-4f87-8455-4ecb5b188bdd","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":124,"box":{"x":101,"y":98,"width":673,"height":11}},{"id":"94885ec5-9d4f-4eb7-8d48-d84cb6ece118","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":124,"box":{"x":101,"y":120,"width":721,"height":11}},{"id":"0e03099c-9c3e-49d2-a6af-a67aa3d86b5b","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":124,"box":{"x":69,"y":135,"width":791,"height":12}},{"id":"98e5c408-8435-4712-bf49-e9ceb311a32c","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":124,"box":{"x":70,"y":150,"width":489,"height":12}},{"id":"a00ba852-cded-49de-9a80-c3edaef65e48","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":124,"box":{"x":102,"y":173,"width":745,"height":11}},{"id":"a04b142e-179b-4653-b5a1-3804cf6c978e","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":124,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"b232051a-5b7c-4828-9b4b-2747b791f3c6","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":124,"box":{"x":69,"y":204,"width":796,"height":11}},{"id":"33f6ac3f-38a8-4e4c-8543-da01a38d6265","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":124,"box":{"x":70,"y":219,"width":766,"height":11}},{"id":"53f3c947-24b2-44b6-8bee-30b98d976a4a","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":124,"box":{"x":70,"y":234,"width":754,"height":11}},{"id":"cd5f384a-a1d5-45cf-9d64-0ab48ed6f21d","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":124,"box":{"x":67,"y":249,"width":800,"height":11}},{"id":"e20758be-b8de-4611-9c98-7478de7f5fd2","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":124,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"daa632cd-2be1-4e4b-93ba-50441c4eef94","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":124,"box":{"x":69,"y":279,"width":782,"height":11}},{"id":"24828e5a-24cb-4d69-a76d-3928a1ea5a4b","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":124,"box":{"x":69,"y":294,"width":460,"height":11}},{"id":"9ab1d9e2-e4ed-4d22-9118-c552410484fa","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":124,"box":{"x":101,"y":317,"width":293,"height":11}},{"id":"96af2c8d-3ec2-41b3-8f9f-5f5a7b4158ac","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":124,"box":{"x":400,"y":317,"width":504,"height":11}},{"id":"244b37f9-7ffc-4b35-bc04-d4663b7c5674","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":124,"box":{"x":69,"y":332,"width":791,"height":11}},{"id":"2ad5bcff-b657-406b-87f9-3ea8839ef51f","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":124,"box":{"x":70,"y":347,"width":793,"height":11}},{"id":"708e22f6-b72f-434e-ab67-dcd641b4dfda","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":124,"box":{"x":70,"y":362,"width":824,"height":11}},{"id":"efa64b24-7638-4ed9-9024-6d22f41a4ee0","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":124,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"01771735-f7b1-4f25-b1a8-ad88721be070","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":124,"box":{"x":69,"y":392,"width":768,"height":12}},{"id":"47483d00-2ba1-4980-81d7-7bcbadbf29d5","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":124,"box":{"x":70,"y":407,"width":826,"height":12}},{"id":"8a8b499d-d208-4079-bf30-77cb9457f127","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":124,"box":{"x":69,"y":423,"width":809,"height":11}},{"id":"b8cb07f9-8297-4693-8bbc-721127651cba","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":124,"box":{"x":70,"y":438,"width":797,"height":11}},{"id":"a6903d4b-c86c-440e-8bc7-9d3f30d8b2f1","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":124,"box":{"x":69,"y":453,"width":795,"height":11}},{"id":"11266256-318c-440e-a18e-a2f8eb21078a","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":124,"box":{"x":68,"y":468,"width":788,"height":11}},{"id":"35873f7b-2b9b-41d9-8808-2af183301538","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":124,"box":{"x":68,"y":483,"width":794,"height":11}},{"id":"99f5035f-e674-4d53-be38-2eaf8cb17cf8","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":124,"box":{"x":69,"y":498,"width":820,"height":11}},{"id":"5f93f434-9f8c-4ed2-a5fd-783ef2f51705","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":124,"box":{"x":68,"y":513,"width":815,"height":12}},{"id":"67d477d0-84f1-414b-8cde-bf9dafca7f50","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":124,"box":{"x":70,"y":528,"width":802,"height":12}},{"id":"5c8bfdd0-2a82-4683-b249-ce9742f66f44","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":124,"box":{"x":68,"y":544,"width":812,"height":11}},{"id":"4c8b9d65-0c4f-479b-a871-825ab75f2f57","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":124,"box":{"x":69,"y":559,"width":838,"height":11}},{"id":"6f67aa73-88af-4b27-9764-8fdb5ff231bf","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":124,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"a0b2ee67-6b9f-435d-bc85-b0717b899bd6","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":124,"box":{"x":69,"y":589,"width":828,"height":11}},{"id":"3978b515-edda-4674-b96a-4c4d87b7f2ec","block_type":"box","text":"Standby Commitment Agreements.","page_number":124,"box":{"x":101,"y":612,"width":255,"height":11}},{"id":"4d7f9a86-4787-42e6-b8b4-69e786c1ebcd","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":124,"box":{"x":362,"y":612,"width":511,"height":11}},{"id":"c98b4742-89b1-4e97-a059-19001abe4346","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":124,"box":{"x":68,"y":627,"width":834,"height":11}},{"id":"01c1f8c4-a9a6-44e1-b154-b6b96d8f7cca","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":124,"box":{"x":68,"y":642,"width":834,"height":11}},{"id":"a56e511a-a782-4456-84e9-abb8ab1d2ecb","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":124,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"e3eb2011-691c-4096-912a-f98431581160","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":124,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"960d5e13-01ba-46b6-901e-b4fd38780f61","block_type":"box","text":"advantageous to the Fund.","page_number":124,"box":{"x":69,"y":687,"width":188,"height":11}},{"id":"0dea1201-97ff-4881-8c81-da6c180cb592","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":124,"box":{"x":101,"y":710,"width":800,"height":11}},{"id":"c1536944-fc93-4faa-bcbc-86357685950d","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":124,"box":{"x":68,"y":725,"width":816,"height":11}},{"id":"1e0ba297-88e2-4094-8138-3ff0b4baf497","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":124,"box":{"x":69,"y":740,"width":835,"height":11}},{"id":"0a0322a8-c445-4720-9d96-0e90100a675e","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":124,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"e01af11a-9191-4876-a57f-fc25a4eec8a2","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":124,"box":{"x":101,"y":778,"width":785,"height":11}},{"id":"948d9c46-1559-4556-9b2e-df7b5280c11c","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":124,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"e6e70d12-ffd6-4c80-b4ae-c8ca117bac67","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":124,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"a3cd5c63-92a7-47a5-8765-d3996437b90b","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":124,"box":{"x":69,"y":823,"width":792,"height":11}},{"id":"50a46648-ac25-423d-bdbd-92159ee1d097","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":124,"box":{"x":70,"y":838,"width":415,"height":11}},{"id":"d9bad2cc-a4e0-47c9-97f6-b68ebc7bca01","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":124,"box":{"x":102,"y":861,"width":789,"height":11}},{"id":"4e538304-ba4c-4de4-84e4-0907dcb99eec","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":124,"box":{"x":69,"y":876,"width":814,"height":11}},{"id":"54d83882-987c-4ec1-9649-700c2f14c1ce","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":124,"box":{"x":70,"y":891,"width":827,"height":12}},{"id":"2cdc4124-4556-4eea-bf76-d96c2bae2ecc","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":124,"box":{"x":69,"y":906,"width":815,"height":12}},{"id":"6de0063e-e7f8-416c-b0d8-98f1e7c8e25a","block_type":"box","text":"II-77","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46b78c6c-e48e-4980-a671-d2d2b379e7e2","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9d3f2aa9-66bb-464e-8c71-ec76de946dc9","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":125,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"35d9457b-3aca-4ae8-92b3-10bf8a996b82","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":125,"box":{"x":69,"y":60,"width":578,"height":11}},{"id":"37ec8ea8-261e-4bd8-af83-97c03943aae0","block_type":"box","text":"Stripped Securities.","page_number":125,"box":{"x":101,"y":83,"width":143,"height":10}},{"id":"6dbddaad-0df8-4bb4-99fc-423284bbdf16","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":125,"box":{"x":251,"y":83,"width":596,"height":10}},{"id":"0f84924e-a86d-4545-acec-fe187ba6e2f5","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":125,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"b31a67bc-f8bc-4491-a44f-8e32d84c9b38","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":125,"box":{"x":70,"y":113,"width":818,"height":11}},{"id":"ce23ba8b-ccc7-4c05-a8af-8b8d76032d4d","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":125,"box":{"x":70,"y":128,"width":813,"height":11}},{"id":"59528dda-af27-41a7-afa8-acbae77107d7","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":125,"box":{"x":70,"y":143,"width":777,"height":11}},{"id":"e8d5237f-3255-4940-bda5-820dfb98e6e6","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":125,"box":{"x":70,"y":158,"width":802,"height":11}},{"id":"d99f52b6-6537-4347-bd4f-2dbaf6b680dc","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":125,"box":{"x":69,"y":173,"width":794,"height":11}},{"id":"b8eddaf3-47f1-4394-a111-560a9d8e3115","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":125,"box":{"x":70,"y":188,"width":837,"height":12}},{"id":"23544d43-9cac-4b2b-8a21-46595c56dbc4","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":125,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"e325201f-7a45-4aa6-8729-042f41faef66","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":125,"box":{"x":69,"y":218,"width":494,"height":12}},{"id":"1ca8bb05-4c8f-492c-9875-859a13c58c59","block_type":"box","text":"Structured Notes.","page_number":125,"box":{"x":101,"y":241,"width":130,"height":9}},{"id":"f973415a-92bf-4caf-a7cf-21be6910696c","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":125,"box":{"x":237,"y":241,"width":650,"height":11}},{"id":"88249319-ebbb-4a6a-870a-bdd15d112d07","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":125,"box":{"x":69,"y":256,"width":818,"height":12}},{"id":"cba96a4d-fd72-4c88-85b4-71de28d0e1a6","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":125,"box":{"x":69,"y":271,"width":839,"height":12}},{"id":"a8b67f68-e14d-4bde-b404-236de9b88f89","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":125,"box":{"x":70,"y":287,"width":821,"height":11}},{"id":"3a9baf6c-ff5b-4a95-9bdc-ad4f2ad13e67","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":125,"box":{"x":70,"y":302,"width":839,"height":11}},{"id":"3e83e186-d28c-4dfd-a437-d9327235bc43","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":125,"box":{"x":69,"y":317,"width":801,"height":11}},{"id":"1d93265e-c217-4fd3-bea1-7b5a579fa259","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":125,"box":{"x":70,"y":332,"width":813,"height":11}},{"id":"f5a7c323-8c43-48f5-b32f-368477b69503","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":125,"box":{"x":68,"y":347,"width":673,"height":11}},{"id":"0c282bfd-4e6b-4a11-b994-00a02908f2a0","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":125,"box":{"x":102,"y":370,"width":768,"height":11}},{"id":"93b776bf-3552-4a0a-9014-3e337fa14087","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":125,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"52ce4eec-6c41-40b4-aa22-474d0d9eb695","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":125,"box":{"x":69,"y":400,"width":787,"height":11}},{"id":"825db9d2-3aec-4ac2-adde-759415df7741","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":125,"box":{"x":69,"y":415,"width":827,"height":11}},{"id":"70f364b0-b1a2-4d94-86df-a8f5e3105d96","block_type":"box","text":"the risk of loss.","page_number":125,"box":{"x":68,"y":430,"width":110,"height":9}},{"id":"dc300e67-b045-4245-a6ed-7c9c8ff5431a","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":125,"box":{"x":101,"y":453,"width":759,"height":11}},{"id":"3a9f8d56-b637-4811-8f6d-d9cea5298484","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":125,"box":{"x":69,"y":468,"width":795,"height":11}},{"id":"130b7a73-882f-40b2-9a98-8aa1fe180d27","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":125,"box":{"x":69,"y":483,"width":819,"height":11}},{"id":"e4a5244b-9910-4ffd-a1bc-3840e9ad49b0","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":125,"box":{"x":70,"y":498,"width":821,"height":11}},{"id":"afbab541-f897-4375-8f05-130c7263abcf","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":125,"box":{"x":69,"y":513,"width":827,"height":12}},{"id":"ce3a7905-1a23-45c9-9f04-20970a557eb1","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":125,"box":{"x":70,"y":528,"width":618,"height":12}},{"id":"a95880dc-00a2-4656-8646-5f2122bc2efb","block_type":"box","text":"Taxability Risk.","page_number":125,"box":{"x":103,"y":551,"width":109,"height":11}},{"id":"5961cfac-d633-4774-b217-70ddd4d0b07d","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":125,"box":{"x":218,"y":551,"width":644,"height":11}},{"id":"72283116-8fc5-4315-a2ee-caf4602a6fb4","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":125,"box":{"x":70,"y":566,"width":817,"height":11}},{"id":"241e545d-e025-4b2a-8530-b73bd7376098","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":125,"box":{"x":68,"y":581,"width":827,"height":11}},{"id":"ad0bbf83-b35b-4670-a807-8b9e4b97cabe","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":125,"box":{"x":69,"y":596,"width":835,"height":12}},{"id":"df301ca8-6569-47b2-8921-247cd7c2bc97","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":125,"box":{"x":68,"y":612,"width":809,"height":11}},{"id":"17b36976-cc7a-4fed-8efe-dcc877eef6e1","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":125,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"f404337f-cca6-4430-888c-fa1f02f3c052","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":125,"box":{"x":69,"y":642,"width":816,"height":11}},{"id":"1ffff1df-71c7-4e17-9a70-b1f40277bace","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":125,"box":{"x":70,"y":657,"width":822,"height":11}},{"id":"7e2f35ac-f0d1-4cd3-9871-8f82020747f6","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":125,"box":{"x":70,"y":672,"width":818,"height":11}},{"id":"a54bdf6f-0b73-496c-a88d-3f0bbcb54283","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":125,"box":{"x":70,"y":687,"width":771,"height":11}},{"id":"040e41a1-3e75-47b6-8751-37563c93c686","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":125,"box":{"x":70,"y":702,"width":765,"height":12}},{"id":"15d3496e-3ee4-499e-8603-8300ea3fce39","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":125,"box":{"x":69,"y":717,"width":834,"height":12}},{"id":"65cceb16-d50f-4d68-90ee-aab972322b48","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":125,"box":{"x":68,"y":732,"width":807,"height":12}},{"id":"bbcdf6b2-3f0e-41b0-8ca3-3919846e13ba","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":125,"box":{"x":70,"y":748,"width":830,"height":11}},{"id":"73e4cfe2-0072-4455-9e4c-94b582df8cbb","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":125,"box":{"x":68,"y":763,"width":838,"height":11}},{"id":"eefeb9de-339c-4456-aa90-acdd15f80735","block_type":"box","text":"the value of an investment in the Fund.","page_number":125,"box":{"x":68,"y":778,"width":278,"height":9}},{"id":"913a752a-7c5f-466b-a305-5b19f1e6917e","block_type":"box","text":"Temporary Defensive Measures.","page_number":125,"box":{"x":103,"y":801,"width":230,"height":11}},{"id":"31132e53-e15b-4083-9b3e-5ead505eab9e","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":125,"box":{"x":339,"y":801,"width":542,"height":11}},{"id":"d05d34e7-6dd5-41bf-9fe5-b7762a95783a","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":125,"box":{"x":69,"y":816,"width":811,"height":11}},{"id":"661ac93f-6d5c-4fc5-b2b7-3beca0113642","block_type":"box","text":"without limitation in cash high quality money market instruments, or other short term investments. Certain Funds","page_number":125,"box":{"x":68,"y":831,"width":809,"height":11}},{"id":"47e5f964-f605-4993-af3a-9dd9d3f7aff7","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":125,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"a5f51da7-3f23-47ac-86f5-d35e0aa4cf74","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":125,"box":{"x":70,"y":861,"width":813,"height":11}},{"id":"ae2a0e8b-fd19-46ef-a3a7-7ac47d26e4b4","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":125,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"96f7f222-b69d-4ae8-a94f-68f4b5a96994","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":125,"box":{"x":68,"y":891,"width":806,"height":12}},{"id":"c11bba3f-2b7f-440a-9123-2ea346f34b67","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":125,"box":{"x":69,"y":906,"width":808,"height":12}},{"id":"13813d49-1781-413f-bf4f-4c94a26c7641","block_type":"box","text":"II-78","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"77b34ac7-b3fe-4ae2-b4c5-82b6a84686c1","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b0bf2769-b986-40f9-827c-af2bab0232c9","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":126,"box":{"x":68,"y":45,"width":820,"height":11}},{"id":"35b47bb7-00e9-4ad0-9a7f-77a6867369e7","block_type":"box","text":"its investment objective.","page_number":126,"box":{"x":70,"y":60,"width":171,"height":11}},{"id":"35f647b7-0846-4110-bec0-2e4b9a1d07e9","block_type":"box","text":"U.S. Government Obligations.","page_number":126,"box":{"x":102,"y":83,"width":213,"height":11}},{"id":"486d2c09-f354-4876-8f0d-675df96c8da8","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":126,"box":{"x":321,"y":83,"width":566,"height":11}},{"id":"e1974be5-a32f-42a6-b142-517e018ee6b7","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":126,"box":{"x":69,"y":98,"width":810,"height":11}},{"id":"be27793d-7342-4a02-8d31-beb27cfef2f7","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":126,"box":{"x":70,"y":113,"width":826,"height":11}},{"id":"e0999dad-73b7-4c3d-a7c8-3df733b1a3b9","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":126,"box":{"x":68,"y":128,"width":779,"height":11}},{"id":"52c3d547-5101-41b8-a00a-5e337acafbfd","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":126,"box":{"x":70,"y":143,"width":798,"height":11}},{"id":"098aa12a-d3a4-4849-8313-5d4b20f6e714","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":126,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"de91c14e-3bd1-4e54-be97-a5d092982d09","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":126,"box":{"x":69,"y":173,"width":809,"height":11}},{"id":"0359db01-8292-4ddd-93a6-f450ef4afb4e","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":126,"box":{"x":69,"y":188,"width":805,"height":11}},{"id":"4b210e37-be2a-4fb2-8a3a-b11042ffbfff","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":126,"box":{"x":69,"y":203,"width":807,"height":12}},{"id":"55e7ce2a-c4ce-4ff7-afea-492f39af67d4","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":126,"box":{"x":70,"y":218,"width":832,"height":12}},{"id":"2b8b4358-d33e-4d53-bec2-05082c0e0a05","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":126,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"f291fba8-f595-4bb4-ab98-973ea2a21b88","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":126,"box":{"x":69,"y":249,"width":716,"height":11}},{"id":"af48e5a3-bf29-4e2b-a276-66dd7e3aef10","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":126,"box":{"x":102,"y":271,"width":800,"height":12}},{"id":"e55893da-20c7-4158-8a0b-ae091bbb0d1a","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":126,"box":{"x":68,"y":286,"width":785,"height":12}},{"id":"47c5424f-2e22-4f8a-a3ac-f27d4f5966b8","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":126,"box":{"x":68,"y":302,"width":813,"height":11}},{"id":"015566cb-e38f-4395-a705-f94308d75a8d","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":126,"box":{"x":70,"y":317,"width":794,"height":11}},{"id":"e7fba518-9fe7-48fa-a658-e75fdfeaf706","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":126,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"d07d6a1a-5729-4982-ae3c-f86ff1c1200f","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":126,"box":{"x":69,"y":347,"width":818,"height":11}},{"id":"7586890a-e3bd-40e7-b8c4-94ad67b66b46","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":126,"box":{"x":70,"y":362,"width":777,"height":11}},{"id":"b42ec46b-c478-4e5b-84b9-6266cfdbfc11","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":126,"box":{"x":70,"y":377,"width":749,"height":12}},{"id":"fc324706-9e73-4908-b731-cd024834be24","block_type":"box","text":"U.S. Treasury Obligations.","page_number":126,"box":{"x":103,"y":400,"width":183,"height":11}},{"id":"1e64aafd-0e27-4523-88d9-b0fdd80688f6","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":126,"box":{"x":292,"y":400,"width":593,"height":11}},{"id":"91583639-2214-46e6-8c0e-882dd1f75fc7","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":126,"box":{"x":69,"y":415,"width":835,"height":11}},{"id":"68182ab7-905d-4d58-b0c9-e8b34e362a19","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":126,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"7863177b-ace0-4f98-8ed4-74a5ae51b20e","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":126,"box":{"x":68,"y":445,"width":823,"height":12}},{"id":"e8d1bd6b-62c6-43b5-bc78-d8c7203dbeda","block_type":"box","text":"do so.","page_number":126,"box":{"x":69,"y":461,"width":42,"height":8}},{"id":"236c7aab-b959-4692-8457-c5f690e9bcc7","block_type":"box","text":"U.S. Treasury Rolls","page_number":126,"box":{"x":102,"y":483,"width":139,"height":11}},{"id":"716193b1-9306-429a-9740-0b372cb8d140","block_type":"box","text":".","page_number":126,"box":{"x":241,"y":491,"width":3,"height":1}},{"id":"27e68909-6508-46c1-936f-3bec6739a61a","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":126,"box":{"x":250,"y":483,"width":656,"height":11}},{"id":"25aca41c-794e-43e3-920d-1c65df531839","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":126,"box":{"x":69,"y":498,"width":804,"height":11}},{"id":"f370f45a-1c16-4c2a-a38c-553bba260c9c","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":126,"box":{"x":69,"y":513,"width":820,"height":12}},{"id":"b31cd8b8-6ba6-4f05-b57b-161468336c34","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":126,"box":{"x":69,"y":528,"width":840,"height":12}},{"id":"77c9381b-6f4d-47c4-bf66-86c9ee09fe41","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":126,"box":{"x":69,"y":543,"width":828,"height":12}},{"id":"12de69dd-1003-49ee-a656-92e21850bcfb","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":126,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"c0a12eae-6750-490f-92e7-9aa4792715a6","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":126,"box":{"x":69,"y":574,"width":829,"height":11}},{"id":"cbdf5159-3510-40ae-b284-52d096642d61","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":126,"box":{"x":68,"y":589,"width":657,"height":11}},{"id":"573bb3e2-46c7-4514-a07d-2154b18b4b87","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":126,"box":{"x":101,"y":612,"width":756,"height":11}},{"id":"8ded996a-79b4-4e09-9cef-2359600d2d80","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":126,"box":{"x":70,"y":627,"width":800,"height":11}},{"id":"f41475ab-3fbc-452d-af29-c10bc4007bf6","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":126,"box":{"x":70,"y":642,"width":617,"height":11}},{"id":"337bc382-0289-4af5-948b-7ebdac8b8b92","block_type":"box","text":"Utility Industries.","page_number":126,"box":{"x":102,"y":665,"width":124,"height":11}},{"id":"d3f6690b-5977-475a-a74d-4c0766659d26","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":126,"box":{"x":233,"y":664,"width":674,"height":12}},{"id":"dc2df7c2-a84a-4e38-a7c7-9215fad62acb","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":126,"box":{"x":69,"y":680,"width":812,"height":11}},{"id":"25a73f2a-66de-499c-b47f-2bb44cf12686","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":126,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"e452ea03-d19d-495d-8d5b-d5d65cca597a","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":126,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"fb949fc7-029a-4aba-9628-85a446379995","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":126,"box":{"x":68,"y":725,"width":815,"height":11}},{"id":"a48efe21-cb9c-49c1-8eab-f6f494f0700c","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":126,"box":{"x":69,"y":740,"width":827,"height":11}},{"id":"05575d0e-60b7-484d-b671-29150aa3c90c","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":126,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"b0763823-c72e-4f5d-b11b-657bb90f68fa","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":126,"box":{"x":69,"y":771,"width":774,"height":11}},{"id":"a8a5e9af-062f-4a54-b7e9-7cc76041f63d","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":126,"box":{"x":69,"y":785,"width":817,"height":12}},{"id":"bc5a4312-9099-4dbe-b35b-567ed46c4b18","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":126,"box":{"x":69,"y":801,"width":839,"height":11}},{"id":"a977c087-bc9a-496c-aa53-c5a3207fa91d","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":126,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"71697885-4abd-4c94-be31-90e4837ce965","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":126,"box":{"x":69,"y":831,"width":761,"height":11}},{"id":"073cea86-cca7-41ab-b02a-a4e43950a899","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":126,"box":{"x":69,"y":846,"width":821,"height":11}},{"id":"cdef5684-161a-47da-be26-a3f839521066","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":126,"box":{"x":69,"y":861,"width":777,"height":11}},{"id":"7063b357-66d2-4ec2-a138-17e6a9066490","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":126,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"d7176286-9587-4f4f-a6f6-07b1567a22c6","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":126,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"cfd779c0-df68-46ee-936c-f39a272105ab","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":126,"box":{"x":68,"y":907,"width":778,"height":11}},{"id":"492ca8d2-e689-4912-b0f6-454605e1327e","block_type":"box","text":"II-79","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"19ed56ed-970c-42f7-98fb-695e065782d3","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ea1dc66-c60a-42d5-9494-1ae2fb78b8bf","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":127,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"cda0d257-6ec6-42bf-a603-8d59aeee8bdd","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":127,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"423b592c-8765-484f-aa74-39ff8b265c2b","block_type":"box","text":"utility.","page_number":127,"box":{"x":69,"y":75,"width":39,"height":11}},{"id":"2f72f11d-a2c0-465a-9bf9-c8a635b916a2","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":127,"box":{"x":102,"y":98,"width":744,"height":11}},{"id":"bf0531aa-1d6e-4249-bd6e-3fe5edb9be88","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":127,"box":{"x":70,"y":113,"width":828,"height":11}},{"id":"6c939afa-71e4-4a86-9b5d-6aae2bdb6f23","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":127,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"ec15ee3b-b93c-44f3-976e-8b0c3e97412c","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":127,"box":{"x":70,"y":143,"width":464,"height":11}},{"id":"8e03954c-9519-4243-bc48-4b9423b0c56f","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":127,"box":{"x":102,"y":166,"width":789,"height":11}},{"id":"22fcd8bd-a2d9-49b0-8924-c21925c1e2d5","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":127,"box":{"x":69,"y":181,"width":790,"height":11}},{"id":"9dabdba3-8d86-4c0a-b244-6930708b9c74","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":127,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"323ac617-6807-42d1-b3a5-ed78007ec056","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":127,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"dd053688-e87a-42d8-a423-1f399f094da6","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":127,"box":{"x":68,"y":226,"width":781,"height":11}},{"id":"cfd1597d-8567-45bf-a647-e8f332a00d41","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":127,"box":{"x":69,"y":241,"width":826,"height":11}},{"id":"99d860bf-2f64-4576-9266-86f47af4e9d9","block_type":"box","text":"continue in the future.","page_number":127,"box":{"x":69,"y":256,"width":156,"height":9}},{"id":"d6eb1660-b8a0-45fa-8f2f-15d3a7a19e05","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":127,"box":{"x":101,"y":279,"width":763,"height":11}},{"id":"be2cd830-1661-442b-9d19-d9a6f7b0647e","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":127,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"c36c8b9a-5ad2-4a67-a98e-f1336a38c55d","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":127,"box":{"x":70,"y":309,"width":834,"height":11}},{"id":"1c10dacb-9a0e-4ff6-83b1-91bf6a155233","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":127,"box":{"x":69,"y":325,"width":784,"height":11}},{"id":"9d9c0b63-dde9-4775-b629-34b05f8c8f96","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":127,"box":{"x":70,"y":339,"width":830,"height":12}},{"id":"5526a52a-6eef-44a4-94df-09501c73b1e4","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":127,"box":{"x":68,"y":355,"width":809,"height":11}},{"id":"0945173a-cd32-4f5c-82f0-d447329d6a8a","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":127,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"25c90ff7-ad31-4f4e-8eae-400151e6f86c","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":127,"box":{"x":69,"y":385,"width":825,"height":11}},{"id":"52e43a39-59d5-4662-b2fd-5c221723653a","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":127,"box":{"x":68,"y":400,"width":840,"height":11}},{"id":"5da948f4-7df2-4867-8f9f-0644d962a1f3","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":127,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"0ecd2359-0f64-4f09-8c1f-c61dabaa9d87","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":127,"box":{"x":69,"y":430,"width":790,"height":11}},{"id":"b03966a3-77ca-4da6-990a-9915b5a5546a","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":127,"box":{"x":68,"y":445,"width":831,"height":12}},{"id":"963c280b-d736-4a85-aefe-3b1351747957","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":127,"box":{"x":69,"y":460,"width":812,"height":12}},{"id":"9dae868b-d258-4bf2-8b4a-897f5a7df550","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":127,"box":{"x":68,"y":475,"width":833,"height":12}},{"id":"316875d2-8031-447b-9a1e-516ff4dceeae","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":127,"box":{"x":68,"y":491,"width":831,"height":11}},{"id":"1d3a2f84-64bf-4de9-9ed0-88d4a795c5cd","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":127,"box":{"x":102,"y":514,"width":720,"height":11}},{"id":"4a2af9c6-8e6d-496d-9dbf-fd61b93e04e0","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":127,"box":{"x":69,"y":529,"width":838,"height":11}},{"id":"7c409619-e107-466b-999d-84ae456028aa","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":127,"box":{"x":68,"y":544,"width":762,"height":11}},{"id":"6b09e446-fc52-4579-9bd0-38e6fbfa8da8","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":127,"box":{"x":68,"y":559,"width":815,"height":11}},{"id":"194458f6-c1e1-43bf-ac62-27c4f3617d1c","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":127,"box":{"x":68,"y":574,"width":801,"height":11}},{"id":"96e6e86d-0062-496f-a4ef-dc97ceff78e7","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":127,"box":{"x":69,"y":589,"width":828,"height":11}},{"id":"b689956b-62b3-479d-aadc-af803ace9e9d","block_type":"box","text":"ways different from regulation in the United States.","page_number":127,"box":{"x":68,"y":604,"width":365,"height":11}},{"id":"bf690c77-bee9-4f0e-8246-eb3937e4225a","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":127,"box":{"x":101,"y":627,"width":745,"height":11}},{"id":"b3598af3-0ae1-4601-a677-73116726024f","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":127,"box":{"x":68,"y":642,"width":790,"height":11}},{"id":"901a5d5e-981c-42b1-9c2f-fc4430084dd5","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":127,"box":{"x":69,"y":657,"width":833,"height":11}},{"id":"422bdda2-aef5-4d20-b26a-9cb5409ac414","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":127,"box":{"x":69,"y":672,"width":810,"height":11}},{"id":"5055333f-feb5-419d-a3f8-ed20d3a98814","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":127,"box":{"x":69,"y":687,"width":831,"height":11}},{"id":"1e381200-f463-40f9-bce8-5c500dd177dc","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":127,"box":{"x":69,"y":702,"width":828,"height":12}},{"id":"fb5ff9a1-9b4f-4108-8a1c-7801cfae99b7","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":127,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"f50d5c3d-7782-4afd-8852-79488805e9ea","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":127,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"29b16985-e875-44c8-a0d6-de2d7f36e578","block_type":"box","text":"increase.","page_number":127,"box":{"x":70,"y":748,"width":63,"height":9}},{"id":"cd31e6ee-cdee-4002-a338-a0fb707aad8b","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":127,"box":{"x":101,"y":770,"width":793,"height":12}},{"id":"af1ac38a-d971-4243-bdc4-4f95832f2ae3","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":127,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"f89ad4f1-2bc3-4d0d-933f-752b553c43de","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":127,"box":{"x":69,"y":801,"width":619,"height":11}},{"id":"54bff414-cca0-4636-9af3-f3556b50a338","block_type":"box","text":"Electric.","page_number":127,"box":{"x":102,"y":823,"width":54,"height":9}},{"id":"b24e81a5-0152-411f-b2b0-8f7a036bfe4c","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":127,"box":{"x":163,"y":823,"width":684,"height":12}},{"id":"e533e06d-240b-456f-8005-75e60daa8c65","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":127,"box":{"x":68,"y":838,"width":793,"height":12}},{"id":"6b299890-330e-40a6-8b1b-127ec8924453","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":127,"box":{"x":69,"y":853,"width":814,"height":12}},{"id":"abb2ea79-225c-45d5-a996-0386fccf164d","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":127,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"1c59007f-b271-4903-9d1c-1a2c79e691b9","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":127,"box":{"x":69,"y":884,"width":821,"height":11}},{"id":"e54c20c9-de41-44c0-9d35-3c1570f7322e","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":127,"box":{"x":69,"y":899,"width":823,"height":11}},{"id":"34f0d85a-fd3c-40c9-87da-5cee04b5e35f","block_type":"box","text":"II-80","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7754d80b-0572-4a7e-8691-228d2736270c","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b2a29807-0eb3-47ff-8e7f-2ab09b98072a","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":128,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"a838d5c7-cc55-477b-9567-94747c1009b7","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":128,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"d9c7a568-fc91-4fc4-b4de-e9f73ffca4ef","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":128,"box":{"x":70,"y":75,"width":836,"height":11}},{"id":"c5d76e1e-611b-4de3-bd16-7c93b1701cbf","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":128,"box":{"x":69,"y":90,"width":793,"height":11}},{"id":"bfc3577f-efb9-40f6-9c3e-7f4b04d20a00","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":128,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"25ec81e5-a1d2-4225-bc38-e02f485a7cc1","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":128,"box":{"x":69,"y":120,"width":819,"height":12}},{"id":"526b21a9-e8ca-4acb-8327-ed7d4f202c4a","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":128,"box":{"x":69,"y":135,"width":775,"height":11}},{"id":"58ea6846-70ce-4e69-af35-b21374d2d794","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":128,"box":{"x":69,"y":150,"width":770,"height":12}},{"id":"39b86758-3272-4ed6-ab72-f2b15c8153c5","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":128,"box":{"x":70,"y":166,"width":826,"height":11}},{"id":"7e20969a-fe58-45c9-a297-afbd31094721","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":128,"box":{"x":69,"y":181,"width":800,"height":11}},{"id":"ad070037-f73f-47ff-91a5-564ef1854ab1","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":128,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"5ab9e950-92c9-44c2-9bb3-115de3f6bfce","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":128,"box":{"x":68,"y":211,"width":826,"height":11}},{"id":"0fed5372-6c0a-4c1b-94df-0f89c2486eb9","block_type":"box","text":"and for decommissioning such plants.","page_number":128,"box":{"x":69,"y":226,"width":270,"height":11}},{"id":"8f0df64e-e46f-4fd1-8d3d-49996af2a4c4","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":128,"box":{"x":101,"y":249,"width":776,"height":11}},{"id":"56d65afd-089f-4804-a0f7-3f735001542e","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":128,"box":{"x":70,"y":264,"width":802,"height":11}},{"id":"76fe923c-d377-41f3-ad13-c8a2e0532c3d","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":128,"box":{"x":69,"y":279,"width":791,"height":11}},{"id":"7e6e9394-d2e6-4617-8c4e-e66d51409531","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":128,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"95417789-c4fc-4454-85f7-68a979580432","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":128,"box":{"x":70,"y":309,"width":838,"height":11}},{"id":"75198a23-b735-4dde-9f3c-18ad00928389","block_type":"box","text":"greater predictability of cash flow.","page_number":128,"box":{"x":68,"y":324,"width":239,"height":12}},{"id":"686ddc54-811a-428b-b0d0-b6001bce4ce7","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":128,"box":{"x":101,"y":347,"width":801,"height":11}},{"id":"a3849032-913b-4564-bbba-2c13ade7d8e3","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":128,"box":{"x":68,"y":362,"width":821,"height":11}},{"id":"ca725b23-6130-4579-b6fb-2f5120e95f37","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":128,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"4f89dd74-9863-4eea-a165-f8571bbf8b77","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":128,"box":{"x":68,"y":393,"width":815,"height":11}},{"id":"64acfd51-08c1-4075-a02a-b96d086a8b1c","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":128,"box":{"x":68,"y":408,"width":803,"height":11}},{"id":"b84d5b51-670c-47f9-ad85-ab28798ed82e","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":128,"box":{"x":69,"y":423,"width":777,"height":11}},{"id":"0a8b08ee-f671-4056-b96e-e2398745baad","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":128,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"8801615e-2ab4-48df-af9a-bdc0bfd35e46","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":128,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"7dbb7905-f1ca-4daf-83c1-8be7a888b60e","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":128,"box":{"x":69,"y":468,"width":700,"height":11}},{"id":"84fdf5ab-8575-48ce-a85e-5e18af91e02e","block_type":"box","text":"Telecommunications.","page_number":128,"box":{"x":103,"y":491,"width":147,"height":9}},{"id":"a1383e18-bbe6-4803-b04f-df91b59fd434","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":128,"box":{"x":256,"y":491,"width":652,"height":11}},{"id":"b66133de-ef01-4b85-bd80-1509620ce04b","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":128,"box":{"x":69,"y":506,"width":813,"height":11}},{"id":"9fa11577-cde2-45e7-9174-fb9f8605ff69","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":128,"box":{"x":70,"y":521,"width":782,"height":11}},{"id":"474297c1-ab81-46e4-abc3-a292956f5ff7","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":128,"box":{"x":69,"y":536,"width":786,"height":11}},{"id":"d5b22ce4-5d4a-43c9-bc8c-8fdff396749f","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":128,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"b5565796-f6b8-4425-bb14-7c061f62ca2d","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":128,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"78740cbd-f47f-4690-b663-cc8e8d3fe0fe","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":128,"box":{"x":69,"y":581,"width":790,"height":12}},{"id":"0d29ebd4-17db-429d-a4e3-e51c779a7945","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":128,"box":{"x":70,"y":596,"width":788,"height":12}},{"id":"6c0be340-96a0-4523-9bf9-16d9e9079e7f","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":128,"box":{"x":68,"y":612,"width":825,"height":11}},{"id":"d2e2a8ad-e266-47cc-bfda-e6e01fa49273","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":128,"box":{"x":69,"y":627,"width":823,"height":11}},{"id":"18b116de-2a59-4fd1-b8a7-202bec313503","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":128,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"766a6374-f55c-4933-ac40-2261a6f617c8","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":128,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"0f4e9ef4-08ee-4f7b-a9fe-5e575d462385","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":128,"box":{"x":70,"y":672,"width":821,"height":11}},{"id":"c7a1c0a7-025e-4f0f-9ad2-7a084b350dd0","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":128,"box":{"x":69,"y":687,"width":827,"height":11}},{"id":"b312687c-fa1e-4433-8a4f-17c1e8cf3f48","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":128,"box":{"x":68,"y":702,"width":804,"height":12}},{"id":"b67bc76b-6fbf-4b6b-9189-f2765aa0cb9e","block_type":"box","text":"residential, corporate and governmental customers.","page_number":128,"box":{"x":69,"y":718,"width":367,"height":11}},{"id":"35166586-2b5d-42ed-9935-8bb035a062d7","block_type":"box","text":"Gas.","page_number":128,"box":{"x":102,"y":740,"width":31,"height":9}},{"id":"1aeec02c-f523-484d-b0f4-6ce45e896661","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":128,"box":{"x":139,"y":740,"width":740,"height":11}},{"id":"32c88a5d-45ad-4f1c-ade6-08d1a6c57d18","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":128,"box":{"x":70,"y":755,"width":834,"height":11}},{"id":"d9176613-7159-4cef-b02b-d5dd0b2661af","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":128,"box":{"x":70,"y":770,"width":756,"height":12}},{"id":"69940604-7e46-4cdc-91ed-eed67a6ec96f","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":128,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"512719e6-d8cf-421d-b5b8-2e4001a7f8bf","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":128,"box":{"x":69,"y":801,"width":801,"height":11}},{"id":"a294d3ec-b60c-4a87-a8bd-479b5344b028","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":128,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"9e60b6b2-386a-4385-8b71-3aae4dc9b362","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":128,"box":{"x":69,"y":831,"width":782,"height":11}},{"id":"a968fc29-3c04-4647-8469-1f0e4f9e6b7e","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":128,"box":{"x":70,"y":846,"width":829,"height":11}},{"id":"3e2136b9-b977-4cdb-995f-bba4dceed76b","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":128,"box":{"x":70,"y":861,"width":691,"height":11}},{"id":"5f758e60-e015-4cd3-96be-bc79e45d24a1","block_type":"box","text":"Water.","page_number":128,"box":{"x":103,"y":884,"width":42,"height":9}},{"id":"4bda57b6-4122-42b2-86b1-b6009a8208ba","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":128,"box":{"x":151,"y":884,"width":754,"height":11}},{"id":"77aadc3b-3f22-4550-a552-ee1ccd5156b3","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":128,"box":{"x":69,"y":899,"width":796,"height":11}},{"id":"7221e647-d483-49a3-8f45-4b39bcb2484d","block_type":"box","text":"II-81","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"adb575f0-bbe4-4b77-b3c2-4055a46021e6","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a28e4e0-a52d-43b9-b925-abb57db397b3","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":129,"box":{"x":69,"y":45,"width":806,"height":11}},{"id":"a978c432-ed77-4c4b-8e73-156ef39532b7","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":129,"box":{"x":69,"y":60,"width":814,"height":11}},{"id":"01c9d3fb-3129-4751-be58-3e7ba89b9ff9","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":129,"box":{"x":69,"y":75,"width":808,"height":11}},{"id":"0211517e-6221-456d-a4a8-4a658f3739f5","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":129,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"6aa5f1a3-2713-4d6d-b71a-e234ffb49766","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":129,"box":{"x":69,"y":105,"width":662,"height":11}},{"id":"bc23ae20-c02d-46ff-948b-90d04eb2dbb8","block_type":"box","text":"Utility Industries Generally.","page_number":129,"box":{"x":103,"y":128,"width":186,"height":11}},{"id":"837c5dca-e528-4112-a3da-b46709f2945e","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":129,"box":{"x":296,"y":128,"width":584,"height":11}},{"id":"2d8cb43c-dc80-40e1-a85d-ef46d4997f22","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":129,"box":{"x":68,"y":143,"width":837,"height":11}},{"id":"c20dba17-dfb3-4ac7-b7d3-75807f26fa29","block_type":"box","text":"not develop in the future.","page_number":129,"box":{"x":69,"y":158,"width":178,"height":11}},{"id":"43f3bbcd-1d56-4dde-b4ae-ed908b163369","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":129,"box":{"x":103,"y":181,"width":585,"height":11}},{"id":"2df4d285-af29-4c8b-afa6-b3f011e3fa89","block_type":"box","text":"A Fund may purchase or sell","page_number":129,"box":{"x":694,"y":181,"width":200,"height":11}},{"id":"3c23a714-6863-4570-88b8-777adba19162","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":129,"box":{"x":69,"y":196,"width":795,"height":11}},{"id":"c5fa6eed-3c56-45ed-a53b-ae55dbcfe924","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":129,"box":{"x":69,"y":211,"width":777,"height":11}},{"id":"56317096-8830-49df-b482-317928bc7b68","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":129,"box":{"x":68,"y":226,"width":820,"height":11}},{"id":"a62933e8-460d-4bc3-8471-7f4558db9ae9","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":129,"box":{"x":68,"y":241,"width":807,"height":11}},{"id":"de11f23e-e5a1-4e42-a55c-c11a4aeac3f0","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":129,"box":{"x":70,"y":256,"width":430,"height":12}},{"id":"9f566dc9-8270-493f-8c94-d4a6f74c43d3","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":129,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"a35d2d96-bd81-4df5-8579-58e1a853e03b","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":129,"box":{"x":70,"y":294,"width":823,"height":11}},{"id":"e3c73015-5f60-4990-a02b-ba16cc4f6b6f","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":129,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"d811915d-eebc-4dd9-9e51-1a4e2dd517d5","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":129,"box":{"x":70,"y":324,"width":755,"height":12}},{"id":"ee7d4d93-3d74-4ffe-aa3b-2f45e0b0e0f5","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":129,"box":{"x":69,"y":339,"width":799,"height":12}},{"id":"4600de82-2391-49de-b4c1-fa33a9f85d3f","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":129,"box":{"x":69,"y":355,"width":614,"height":11}},{"id":"1931b8bd-9dab-4ef6-8f2b-972dc84f8af0","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":129,"box":{"x":101,"y":377,"width":780,"height":11}},{"id":"16f05c43-7876-4374-8019-e7340723cdb9","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":129,"box":{"x":70,"y":392,"width":823,"height":12}},{"id":"64dbbaf7-f04d-4920-b4c3-da8885ae09c7","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":129,"box":{"x":69,"y":408,"width":838,"height":11}},{"id":"fabe16bd-a5e3-4da9-b4b2-30d09ec40c87","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":129,"box":{"x":68,"y":423,"width":839,"height":11}},{"id":"38661822-5dcf-426c-9182-e1fd3a243144","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":129,"box":{"x":70,"y":438,"width":824,"height":11}},{"id":"962e0db3-5251-4447-9cd1-8b079c3d2d9e","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":129,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"a16812bf-40c2-4534-b998-4ed40c120bdd","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":129,"box":{"x":69,"y":475,"width":795,"height":12}},{"id":"833918d0-ac44-4130-9b09-7f98f5999f3f","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":129,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"51b662b3-7b34-4fea-b9ea-0041f81183c9","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":129,"box":{"x":101,"y":513,"width":784,"height":12}},{"id":"6a7cacdd-38dc-4f7f-8727-1a1f967dbb3d","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":129,"box":{"x":69,"y":528,"width":772,"height":12}},{"id":"1e4d157b-cdcb-4f96-ab54-669186b1d53d","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":129,"box":{"x":69,"y":544,"width":434,"height":11}},{"id":"aa2c381c-cec8-4406-bc49-fcb2ae23a8b8","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":129,"box":{"x":101,"y":566,"width":745,"height":11}},{"id":"5d4ec3bc-c687-4483-b765-d70416a3e40a","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":129,"box":{"x":68,"y":581,"width":831,"height":12}},{"id":"48937b29-a078-4974-9369-ca2351e0b6ca","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":129,"box":{"x":69,"y":597,"width":823,"height":11}},{"id":"371847f4-92dd-4fd7-8fef-c9dca06ee688","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":129,"box":{"x":68,"y":612,"width":514,"height":11}},{"id":"78ac894d-a50b-40b4-93a7-b67882890af3","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":129,"box":{"x":102,"y":634,"width":759,"height":12}},{"id":"cf5a9b43-7dac-4446-b7a8-2ed8a90ae6e9","block_type":"box","text":"securities (e.g., firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":129,"box":{"x":69,"y":649,"width":793,"height":12}},{"id":"010d0a7a-dd67-4e80-a185-7808f115b06a","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":129,"box":{"x":69,"y":664,"width":813,"height":12}},{"id":"28a1810c-e650-4bf7-a594-41252046e9da","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":129,"box":{"x":70,"y":680,"width":822,"height":11}},{"id":"27710274-3702-428d-8e29-25c1de06759a","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":129,"box":{"x":69,"y":695,"width":802,"height":11}},{"id":"4dddd256-2ba0-40e7-94b2-10f0dbca8a31","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":129,"box":{"x":69,"y":710,"width":826,"height":11}},{"id":"a93b3080-8f16-485b-8509-2abdfe353e71","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":129,"box":{"x":70,"y":725,"width":816,"height":11}},{"id":"0d59c965-ee3c-4eec-a7d7-2d9a7ecdfffc","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":129,"box":{"x":70,"y":740,"width":349,"height":11}},{"id":"e08490f8-ce17-4d87-ad00-51adb7eefd3a","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":129,"box":{"x":102,"y":763,"width":800,"height":11}},{"id":"55586583-c89e-4978-b822-3d63605acb63","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":129,"box":{"x":68,"y":778,"width":829,"height":11}},{"id":"6f4e7d94-0c7d-42d0-86fe-59108cfb6064","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":129,"box":{"x":69,"y":793,"width":814,"height":11}},{"id":"879180a9-f200-4227-9216-483ce554977f","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":129,"box":{"x":68,"y":808,"width":799,"height":11}},{"id":"6bf6aeb3-f270-4f1a-9535-9a6e60c7bdf5","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":129,"box":{"x":69,"y":823,"width":836,"height":11}},{"id":"2d6e8283-7e2b-4452-85f1-28bba5d29839","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":129,"box":{"x":70,"y":839,"width":824,"height":11}},{"id":"3282f4df-8263-41e4-8156-3c302d163dd2","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":129,"box":{"x":69,"y":853,"width":829,"height":12}},{"id":"596db58e-96c6-4201-9b13-adbf8a4bde59","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":129,"box":{"x":68,"y":869,"width":573,"height":11}},{"id":"a2a8f353-0802-4f3b-964c-ef99f7be074f","block_type":"box","text":"Yields and Ratings.","page_number":129,"box":{"x":103,"y":891,"width":139,"height":11}},{"id":"23524b87-d6ab-4f0c-b016-377add59f576","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":129,"box":{"x":247,"y":891,"width":628,"height":12}},{"id":"6a6b72f5-68d2-405d-8003-7d5c60d07011","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":129,"box":{"x":69,"y":906,"width":834,"height":12}},{"id":"7796c5f6-c464-4a9c-9c4d-9f8a7bb6bcc3","block_type":"box","text":"II-82","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b6e8daa4-c991-48f5-9eeb-c1545bad855d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a40cf6a4-4544-4cea-85a8-9b6466ba5270","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":130,"box":{"x":69,"y":45,"width":799,"height":11}},{"id":"406915b5-8dfc-424a-9a44-4b1b500b75a7","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":130,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"b8cb07ff-c2aa-40a1-bf5d-1d73a40e4c48","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":130,"box":{"x":68,"y":75,"width":792,"height":11}},{"id":"b5748f84-0b8d-4c59-b535-d7cf323aab04","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":130,"box":{"x":70,"y":90,"width":827,"height":11}},{"id":"eec4ec4d-753f-436a-88e0-aada249c3caf","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":130,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"f2dc1f5a-9a18-45e0-9e41-5791ed3491c0","block_type":"box","text":"continue to hold the security.","page_number":130,"box":{"x":69,"y":120,"width":204,"height":11}},{"id":"82ddcd1a-8bee-4979-818e-60220d5e5b3e","block_type":"box","text":"Zero Coupon Securities.","page_number":130,"box":{"x":102,"y":143,"width":175,"height":11}},{"id":"ffede150-c630-44d1-931d-56e0457779e7","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":130,"box":{"x":283,"y":143,"width":601,"height":11}},{"id":"44c8513d-66bb-42e1-8ddc-bb1dc140ce0d","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":130,"box":{"x":69,"y":158,"width":837,"height":11}},{"id":"df9cfbce-d784-47dc-aedf-f1c2d317a81d","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":130,"box":{"x":69,"y":173,"width":822,"height":11}},{"id":"0dc9f3c9-d2ed-490e-9472-c0b928a75ed8","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":130,"box":{"x":68,"y":188,"width":814,"height":11}},{"id":"61e4a0e7-0b17-4bcd-8256-dcdba503a42a","block_type":"box","text":"security.","page_number":130,"box":{"x":69,"y":204,"width":57,"height":11}},{"id":"776c1078-b2b7-43ce-89c5-6184b5b7713e","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":130,"box":{"x":101,"y":226,"width":749,"height":11}},{"id":"272c5087-9232-4edc-854d-9bd16a294764","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":130,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"b9665104-0124-4b0b-8148-128e5b22f7d1","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":130,"box":{"x":69,"y":256,"width":833,"height":12}},{"id":"2f9be275-c669-4e53-8b23-428582f89d37","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":130,"box":{"x":70,"y":271,"width":836,"height":12}},{"id":"53626738-585d-41ba-8163-0db06fb5990b","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":130,"box":{"x":69,"y":286,"width":804,"height":12}},{"id":"a2bb2d2d-c485-4738-aa1d-33e710a18ea4","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":130,"box":{"x":68,"y":302,"width":824,"height":11}},{"id":"8868383c-ba39-4eb9-96bf-f3996fed94b7","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":130,"box":{"x":68,"y":317,"width":805,"height":11}},{"id":"0383a008-43bc-4c68-bc54-084a86e84ed8","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":130,"box":{"x":70,"y":332,"width":837,"height":11}},{"id":"1ff2b39f-ef2b-4a4d-be58-5983830bfbb3","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":130,"box":{"x":69,"y":347,"width":791,"height":11}},{"id":"a9f7c054-b0fe-407d-a4f8-4519a88fdd12","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":130,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"f50d2a5f-b3ea-4bb4-831a-97dced604682","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":130,"box":{"x":69,"y":377,"width":400,"height":12}},{"id":"70e6682b-f499-4a59-92ce-3638f6ee9dab","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":130,"box":{"x":101,"y":400,"width":775,"height":11}},{"id":"a3ad140c-df8d-4eca-bdb6-e806b662b6c1","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":130,"box":{"x":70,"y":415,"width":827,"height":11}},{"id":"0a33b4ec-cfc1-4441-ade4-e49addce7d26","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":130,"box":{"x":70,"y":430,"width":826,"height":11}},{"id":"327d99bb-a250-4227-b013-fb012aebb006","block_type":"box","text":"intervals.","page_number":130,"box":{"x":70,"y":446,"width":64,"height":8}},{"id":"225807a3-d291-4f3f-817d-252adea604cb","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":130,"box":{"x":102,"y":468,"width":749,"height":11}},{"id":"6e973961-15fe-4941-a30a-26d920b622d1","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":130,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"f9b9c7f8-3bff-449f-99ba-1133b907d1b5","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":130,"box":{"x":70,"y":498,"width":799,"height":11}},{"id":"5bbde7ae-137e-4847-8663-7b6dd936c388","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":130,"box":{"x":68,"y":513,"width":799,"height":12}},{"id":"78936cc2-382c-4d48-879d-ef2dc30c916d","block_type":"box","text":"exposure to zero coupon securities.","page_number":130,"box":{"x":69,"y":529,"width":253,"height":10}},{"id":"0c6d5c4b-e4fc-4dbe-9076-f366c33326b6","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":130,"box":{"x":102,"y":551,"width":740,"height":11}},{"id":"3e7aee4b-4468-46ea-83fe-df68fa59eed0","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":130,"box":{"x":69,"y":566,"width":829,"height":11}},{"id":"e34b700d-bccb-44f9-a6bc-f4f5aeb45fd7","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":130,"box":{"x":70,"y":582,"width":829,"height":10}},{"id":"012a9478-3f01-4fcf-b3c5-478eef1c0e84","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":130,"box":{"x":69,"y":596,"width":741,"height":12}},{"id":"d78e459d-de12-4544-b930-e06994fd0ca4","block_type":"box","text":"Suitability. (All Funds)","page_number":130,"box":{"x":101,"y":619,"width":161,"height":11}},{"id":"9f944fdc-ff04-4f61-8fda-92328ea77088","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":130,"box":{"x":101,"y":642,"width":793,"height":11}},{"id":"3016d946-769f-43db-a75d-5e2662a36bec","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":130,"box":{"x":68,"y":657,"width":811,"height":11}},{"id":"8db3aebf-1e6d-4fc0-8801-38dece1e26ec","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":130,"box":{"x":70,"y":672,"width":810,"height":11}},{"id":"a50975a2-3201-43a0-8447-1e406328b46d","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":130,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"d8dad299-1ee4-45e6-9a05-6d60bee97406","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":130,"box":{"x":68,"y":702,"width":460,"height":12}},{"id":"7885186b-36cf-4c1c-9c12-8f8c260fb946","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":130,"box":{"x":102,"y":725,"width":264,"height":11}},{"id":"fddee8c5-b773-4d67-984a-5b3046ac83c6","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":130,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"d53012cc-6fcb-49be-bca8-a3f4c77fb719","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":130,"box":{"x":68,"y":763,"width":807,"height":11}},{"id":"bf61956d-5f2f-4a8c-b7de-d9ef6957692f","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":130,"box":{"x":69,"y":778,"width":528,"height":11}},{"id":"009b6c6f-b212-4b62-aad5-c097340c13a3","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":130,"box":{"x":102,"y":801,"width":735,"height":11}},{"id":"97fc6ae4-458e-45ee-9d37-7e2ed5459806","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":130,"box":{"x":69,"y":816,"width":775,"height":11}},{"id":"fba62d96-0203-4008-ae48-3589d0f91071","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":130,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"cee8958e-e0cc-4e25-a397-6f5a6bb6ce6e","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":130,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"6f39fd84-b57a-477e-9bc1-f0e76424e003","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":130,"box":{"x":69,"y":861,"width":837,"height":11}},{"id":"c47e87d9-2eae-4305-9da1-209534dcdaa5","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":130,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"f44d6ea6-753f-44ad-bdc6-04010e0ba51c","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":130,"box":{"x":68,"y":891,"width":802,"height":12}},{"id":"f85522a0-d43b-42aa-8c13-251af434a242","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":130,"box":{"x":69,"y":906,"width":837,"height":12}},{"id":"6f7b70dd-1f45-41dc-a9c3-23062007edb1","block_type":"box","text":"II-83","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ec39c5b5-7b09-4c15-9867-76cea0aba6e2","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88a27c39-ff78-4300-8072-5eecf1dc23d9","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":131,"box":{"x":68,"y":45,"width":819,"height":11}},{"id":"7905af62-018c-4380-87ff-2a63289236c5","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":131,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"02ae1b59-6cc0-4a4e-bc72-eb6df99c558a","block_type":"box","text":"(i.e., partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":131,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"a99c3a22-b6f2-44ce-bb9a-d3ee2cbf6a81","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":131,"box":{"x":70,"y":90,"width":824,"height":11}},{"id":"a5afe112-d8fa-4a87-9735-6d423f7f7946","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":131,"box":{"x":69,"y":105,"width":824,"height":11}},{"id":"94ea2c5f-f2ee-4643-8422-adde17424eb5","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":131,"box":{"x":69,"y":120,"width":838,"height":12}},{"id":"18480d18-fb98-4ce8-8f1c-09afcd137867","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":131,"box":{"x":69,"y":135,"width":815,"height":12}},{"id":"ab23984b-ab0f-4180-8375-d9d8ac1fdcc8","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":131,"box":{"x":69,"y":150,"width":781,"height":12}},{"id":"69a294a9-2a5d-48c0-8fe1-000f090f5d3a","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":131,"box":{"x":68,"y":166,"width":810,"height":11}},{"id":"d9bdaea9-f631-4f66-83ac-07d1e8b1fa5f","block_type":"box","text":"regarded as the sole issuer.","page_number":131,"box":{"x":69,"y":181,"width":198,"height":11}},{"id":"9cd8f5ca-368e-4098-a476-d21bf6bfd73e","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":131,"box":{"x":102,"y":203,"width":784,"height":12}},{"id":"bb1f2d5b-b8bc-4f12-ae6d-6262f960bfbf","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":131,"box":{"x":69,"y":218,"width":819,"height":12}},{"id":"78c99435-f170-4561-9c6d-cff414c61fd0","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":131,"box":{"x":69,"y":234,"width":811,"height":11}},{"id":"03b0b2ef-afc4-4e1b-b5b4-e834ba61b464","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":131,"box":{"x":70,"y":249,"width":747,"height":11}},{"id":"9f760fa9-3d0f-45a5-af77-191a89c292f5","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":131,"box":{"x":70,"y":264,"width":834,"height":11}},{"id":"e58a16f2-263f-4188-b10e-5b1a63150a4c","block_type":"box","text":"75% of its total assets.","page_number":131,"box":{"x":69,"y":279,"width":165,"height":9}},{"id":"5c04ca08-2b6b-47b6-b524-e6acdd0eb06d","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":131,"box":{"x":268,"y":308,"width":442,"height":10}},{"id":"94572421-3029-4516-95b0-0c9c560a18bd","block_type":"box","text":"Directors and Officers","page_number":131,"box":{"x":69,"y":339,"width":159,"height":9}},{"id":"e7de1e46-01da-4def-81d1-e442005d9580","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":131,"box":{"x":102,"y":361,"width":733,"height":12}},{"id":"7fe95607-c443-4393-b793-28a090513688","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":131,"box":{"x":69,"y":377,"width":783,"height":11}},{"id":"13d15ca1-1c91-43f8-882f-b567ebd2b055","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":131,"box":{"x":69,"y":392,"width":795,"height":11}},{"id":"1440a1ad-f98b-41f6-85d2-d36342cad3b1","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":131,"box":{"x":69,"y":407,"width":789,"height":11}},{"id":"02e66272-22f7-46f8-bb06-43ed6f774f9d","block_type":"box","text":"Management Arrangements","page_number":131,"box":{"x":69,"y":437,"width":202,"height":11}},{"id":"7db6aa05-48d9-47e6-8052-7ad7b5aefcb0","block_type":"box","text":"Management Services.","page_number":131,"box":{"x":102,"y":460,"width":162,"height":11}},{"id":"b78d4790-6d35-4271-ab8a-3fb619cc1da0","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":131,"box":{"x":270,"y":460,"width":615,"height":11}},{"id":"36d8fbef-cd35-4409-8bb2-832ab2a1b6b1","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":131,"box":{"x":69,"y":475,"width":836,"height":11}},{"id":"342470ad-a829-4172-a38b-170714b48e1a","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":131,"box":{"x":70,"y":490,"width":820,"height":11}},{"id":"9757623f-ef07-4252-b0ba-acfc75dfa479","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. 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Certain accounting services are provided to each Fund","page_number":131,"box":{"x":69,"y":860,"width":825,"height":12}},{"id":"aeb6a8c3-e3ca-439a-bfa0-04e470a74124","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":131,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"c47c5f6d-ebe9-479c-9f9f-154a61503605","block_type":"box","text":"or JPMorgan Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as","page_number":131,"box":{"x":69,"y":891,"width":794,"height":11}},{"id":"efa1697e-1beb-4f23-aae6-850197b71c33","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. 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Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":132,"box":{"x":70,"y":166,"width":819,"height":11}},{"id":"bfe429bc-1312-4914-8869-bda4633cb392","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":132,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"3cba9842-dda8-4ee9-bd03-bc76193e0191","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":132,"box":{"x":69,"y":196,"width":768,"height":11}},{"id":"40206290-103f-4a4e-9fbf-33c1b1071c47","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":132,"box":{"x":69,"y":211,"width":821,"height":11}},{"id":"c4faf20b-9d38-41c8-9adb-c518c2b73218","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":132,"box":{"x":69,"y":226,"width":517,"height":11}},{"id":"a86eedc5-1d50-457d-a429-04144bd1f2e3","block_type":"box","text":"Duration and Termination.","page_number":132,"box":{"x":102,"y":249,"width":182,"height":9}},{"id":"d40f7b9f-9219-410e-bc9b-eb4544475ce7","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":132,"box":{"x":292,"y":249,"width":613,"height":11}},{"id":"e917e0ad-88b0-42df-8f70-85df68d9d4a5","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":132,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"350ac228-b2a5-4e2c-8e8e-76c8992248bd","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":132,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"7068b2ee-4c33-4a71-90d2-a53ec0e8c620","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not parties to such agreement or interested persons (as defined","page_number":132,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"560ccd6a-3945-4f73-b0f0-1d7f05fda7ae","block_type":"box","text":"in the Investment Company Act) of any such party. 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Such contract is not assignable","page_number":132,"box":{"x":70,"y":649,"width":810,"height":12}},{"id":"b9ffc2fd-ee89-4ac0-9468-ed522b535e09","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either party thereto or by the vote of the","page_number":132,"box":{"x":69,"y":664,"width":805,"height":12}},{"id":"44af4061-7cca-496f-bc75-020b296b5ffb","block_type":"box","text":"shareholders of the Fund.","page_number":132,"box":{"x":69,"y":680,"width":181,"height":9}},{"id":"539ae6b7-6b34-405a-a3d0-0c54e399f33d","block_type":"box","text":"Transfer Agency Services.","page_number":132,"box":{"x":103,"y":702,"width":180,"height":12}},{"id":"2f5ba7e0-b262-44fe-abcf-63306d448b38","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":132,"box":{"x":291,"y":702,"width":595,"height":12}},{"id":"dbf3100c-0939-4c6e-924d-c5a8bdd00500","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":132,"box":{"x":69,"y":717,"width":816,"height":12}},{"id":"bc3924e9-a5e4-45d2-ba26-e02eecfd9cb5","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":132,"box":{"x":68,"y":732,"width":833,"height":12}},{"id":"bebd1628-b011-4507-86c4-158b4f4e197e","block_type":"box","text":"with the Funds. 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Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":133,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"a34501d5-7a48-41ec-8583-1c9debbd92da","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":133,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"fc835f81-3834-4de6-aab7-8a21449632a0","block_type":"box","text":"Custodian Services.","page_number":133,"box":{"x":102,"y":83,"width":141,"height":8}},{"id":"044ba042-81bf-403a-9627-efe4acdb76c4","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":133,"box":{"x":249,"y":82,"width":654,"height":11}},{"id":"6a3e08df-7dae-4d8f-83a8-d01d286ba762","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. 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The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":133,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"1dad529d-6eda-4439-9fbc-b8e9c1d541fc","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":133,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"70100249-e66f-43f1-a62c-4d0871d601d7","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":133,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"ba3d9b20-842b-4801-8961-aaf9a186fca2","block_type":"box","text":"certain assets.","page_number":133,"box":{"x":69,"y":173,"width":106,"height":9}},{"id":"b186c17e-48f5-4526-81a1-295161d45d2f","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":133,"box":{"x":102,"y":196,"width":716,"height":10}},{"id":"875c99c0-2523-41a1-ba18-b72b40be22e8","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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With respect to such Funds, the custodian fees, including the amount","page_number":133,"box":{"x":69,"y":249,"width":834,"height":11}},{"id":"4afbf208-0159-41b3-9eef-1a3d48f8176b","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":133,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"40997d50-36ce-4c65-89ef-44e6324a50f5","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":133,"box":{"x":69,"y":279,"width":807,"height":11}},{"id":"736dea36-61d8-4318-b8af-f6e0ed269b14","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":133,"box":{"x":68,"y":294,"width":836,"height":11}},{"id":"591cc1d5-1929-4696-a67c-6237abe54721","block_type":"box","text":"Fund.","page_number":133,"box":{"x":70,"y":309,"width":36,"height":9}},{"id":"34b6aca5-b784-4d34-8faf-562390e627d7","block_type":"box","text":"Accounting Services.","page_number":133,"box":{"x":101,"y":332,"width":148,"height":11}},{"id":"7d678f4f-1c5e-4289-852d-2132d29bfbd8","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":133,"box":{"x":256,"y":332,"width":641,"height":11}},{"id":"e2e5071b-f58b-4fe2-a3b7-4eae5196487f","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain 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":133,"box":{"x":70,"y":362,"width":797,"height":11}},{"id":"bb357558-f2df-4149-9aa8-80d6ab156860","block_type":"box","text":"Master LLCs.","page_number":133,"box":{"x":70,"y":377,"width":91,"height":9}},{"id":"ea8ba4af-12ea-4ba5-a42c-20e894cc0f58","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":133,"box":{"x":102,"y":400,"width":771,"height":11}},{"id":"c31558c5-c69b-4419-a949-d71ec16ee7ca","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":133,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"38a1823a-9cac-4593-8ef8-cf20e09cc491","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":133,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"7d2847fd-7d76-44f1-a5cc-6606ea83f4f6","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":133,"box":{"x":69,"y":445,"width":386,"height":11}},{"id":"2e17df59-5867-416d-ad79-e82c574fa74f","block_type":"box","text":"Distribution Expenses.","page_number":133,"box":{"x":102,"y":468,"width":158,"height":11}},{"id":"f8b10fe7-b5a4-43a0-bfea-aff4d54abbe7","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":133,"box":{"x":267,"y":468,"width":614,"height":11}},{"id":"a4df14e5-bcac-4ba9-9906-3c087128afdc","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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The Distributor also pays for other supplementary sales","page_number":133,"box":{"x":70,"y":543,"width":799,"height":12}},{"id":"374aaa07-f752-483b-9bfd-04a047e0d864","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":133,"box":{"x":70,"y":559,"width":788,"height":11}},{"id":"e5229ff6-0efa-47e6-a89f-1f7461633522","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":133,"box":{"x":68,"y":574,"width":513,"height":11}},{"id":"77706027-8622-4371-a1af-0520ef875d42","block_type":"box","text":"Code of Ethics","page_number":133,"box":{"x":69,"y":604,"width":105,"height":9}},{"id":"6eddd6c7-1b10-4847-bbd0-a412d41bc0a7","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":133,"box":{"x":102,"y":627,"width":780,"height":11}},{"id":"e550ac7d-0ac5-4023-8362-56f79856793b","block_type":"box","text":"17j-1 under the Investment Company Act. 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BlackRock, its subsidiaries and their","page_number":138,"box":{"x":102,"y":211,"width":731,"height":11}},{"id":"a15b70ae-39f7-4120-b2ba-4e07a95b2ba9","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":138,"box":{"x":69,"y":226,"width":799,"height":11}},{"id":"7523ade1-c965-450c-9e3c-bd813478d758","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":138,"box":{"x":70,"y":241,"width":786,"height":11}},{"id":"d4c4e69f-a856-404d-b1ac-c114c6ae4176","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":138,"box":{"x":70,"y":256,"width":829,"height":12}},{"id":"c0bf7adb-e06f-4115-b6b9-52194e66b94f","block_type":"box","text":"and have interests other than that of managing the Funds. These are considerations of which investors in a Fund","page_number":138,"box":{"x":69,"y":271,"width":804,"height":12}},{"id":"bfd94b3f-7c14-47c9-90e7-aa0a72cec333","block_type":"box","text":"should be aware, and which may cause conflicts of interest that could disadvantage a Fund and its shareholders.","page_number":138,"box":{"x":69,"y":286,"width":806,"height":12}},{"id":"aa56a8ab-79fc-47d5-ba26-0b8e1e67942c","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":138,"box":{"x":101,"y":309,"width":722,"height":11}},{"id":"d3ae84c4-0d10-401c-8f4e-7dd4df77d8ec","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be purchased","page_number":138,"box":{"x":69,"y":325,"width":827,"height":10}},{"id":"1636becc-100e-40d3-8fa9-24d16543a1c5","block_type":"box","text":"or sold by a Fund.","page_number":138,"box":{"x":69,"y":340,"width":125,"height":11}},{"id":"1a6e06ce-94fb-4a4c-86a8-5ad517af4fa6","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or funds","page_number":138,"box":{"x":102,"y":362,"width":762,"height":11}},{"id":"721fc283-6615-49eb-a6ec-ae6261c9edb8","block_type":"box","text":"(including separate accounts and other funds and collective investment vehicles) that have investment objectives","page_number":138,"box":{"x":69,"y":377,"width":806,"height":12}},{"id":"afa5490d-896a-4930-bc24-12a0d1f43960","block_type":"box","text":"identical or similar to those of a Fund and/or that engage in transactions in the same types of securities, currencies","page_number":138,"box":{"x":70,"y":392,"width":828,"height":12}},{"id":"e8850251-ae67-41d6-b664-93a8f95ae98c","block_type":"box","text":"and instruments as the Fund. Such other funds or accounts may offer exposure to strategies that are identical or","page_number":138,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"91feb963-59ee-4bae-afb2-b6315c8ec83c","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":138,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"54b15e67-2851-4f7c-a9d0-961088061eb3","block_type":"box","text":"services provided by BlackRock. BlackRock is also a major participant in the global currency, equities, swap and fixed","page_number":138,"box":{"x":69,"y":438,"width":838,"height":11}},{"id":"4a077f7d-e242-40ad-8a11-82900b3f0f36","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. As such,","page_number":138,"box":{"x":70,"y":453,"width":791,"height":11}},{"id":"ed800dc9-c450-4a9f-b8d8-20216f84be52","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and instruments in which","page_number":138,"box":{"x":70,"y":468,"width":835,"height":11}},{"id":"93c613ce-f640-4452-bcd8-719ecd8ed61f","block_type":"box","text":"a Fund invests.","page_number":138,"box":{"x":69,"y":483,"width":106,"height":9}},{"id":"5b5725fb-68fd-4b51-9319-d1f086329918","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in which a","page_number":138,"box":{"x":102,"y":506,"width":785,"height":11}},{"id":"37048b60-d042-44b5-8110-96c396126549","block_type":"box","text":"Fund invests, which could have an adverse impact on a Fund’s performance. Such transactions, particularly in","page_number":138,"box":{"x":70,"y":521,"width":785,"height":11}},{"id":"1ef13a43-5087-4de3-84c4-40ddc34354a6","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":138,"box":{"x":69,"y":536,"width":832,"height":11}},{"id":"5e5099d0-e9c9-450c-83c4-eae1196390a0","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":138,"box":{"x":68,"y":551,"width":652,"height":11}},{"id":"e1fed7c3-975c-43d6-ac7a-c3fed5aeca18","block_type":"box","text":"In addition, the portfolio holdings of certain BlackRock-advised investment vehicles managed in an identical or","page_number":138,"box":{"x":102,"y":574,"width":787,"height":11}},{"id":"20416c29-9d1a-41d3-9d25-a4391528b173","block_type":"box","text":"substantially similar manner as certain Funds are made publicly available on a more timely basis than the applicable","page_number":138,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"bf488f64-a078-4cbf-a567-c6b949de3c46","block_type":"box","text":"Fund. In some cases, such portfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":138,"box":{"x":70,"y":604,"width":816,"height":11}},{"id":"179e9667-319d-4ddf-be54-e5e10de79e38","block_type":"box","text":"possible that a recipient of portfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":138,"box":{"x":70,"y":619,"width":831,"height":11}},{"id":"bb74ea13-7d1a-47e0-b6b0-ea50204b531c","block_type":"box","text":"that is managed in an identical or substantially similar manner, including by trading ahead of or against such Fund","page_number":138,"box":{"x":68,"y":634,"width":813,"height":12}},{"id":"dc5914e5-e2c0-47ea-8a6a-6c3afceb82fa","block_type":"box","text":"based on the information received.","page_number":138,"box":{"x":69,"y":649,"width":247,"height":9}},{"id":"1e67ff6a-f63d-465e-9a90-15ea685f1f33","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":138,"box":{"x":101,"y":672,"width":777,"height":11}},{"id":"bd211583-39c5-4629-a32b-43f8bfc10941","block_type":"box","text":"actually purchased or sold may be allocated among the accounts on a basis determined in its good faith discretion to","page_number":138,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"838154d2-d93e-4409-809e-dab0cc4ecf33","block_type":"box","text":"be equitable. In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":138,"box":{"x":69,"y":702,"width":835,"height":11}},{"id":"f599e1ef-1fe4-475d-839f-9d87eb1a43bf","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":138,"box":{"x":70,"y":718,"width":817,"height":11}},{"id":"6574fcb0-8240-4b04-8c39-0708b454266c","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, particularly, but","page_number":138,"box":{"x":69,"y":732,"width":823,"height":12}},{"id":"686c76ca-4e68-4745-b8b2-827f7b7a6cfc","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":138,"box":{"x":69,"y":748,"width":803,"height":11}},{"id":"bda329dd-8989-4af4-a5d5-bfecf5ce57b4","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":138,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"75eb361d-e193-40ee-a56b-8ddb3f74fa95","block_type":"box","text":"information that is also used to support decisions for other accounts. When BlackRock implements a portfolio","page_number":138,"box":{"x":70,"y":778,"width":785,"height":11}},{"id":"5b9b92ca-5ffa-4f71-97bc-d67b17c65701","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":138,"box":{"x":69,"y":793,"width":767,"height":11}},{"id":"b9cd757c-9f07-490d-9d3c-6acd8bf6775b","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":138,"box":{"x":69,"y":808,"width":802,"height":11}},{"id":"19c9584a-e9cd-4d7b-a76b-dbce459509ec","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":138,"box":{"x":68,"y":823,"width":827,"height":12}},{"id":"41ecb25f-e7d2-41fd-95dc-58dea7f771cc","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in certain cases, elect to implement internal policies and","page_number":138,"box":{"x":69,"y":839,"width":776,"height":11}},{"id":"a765247a-c4a7-4601-83a0-21daab1e3f16","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in certain","page_number":138,"box":{"x":70,"y":854,"width":774,"height":11}},{"id":"a6981add-d82e-41d8-b7e3-778672e74389","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":138,"box":{"x":69,"y":869,"width":781,"height":11}},{"id":"2190faa5-50cf-49aa-9eaa-0a4056ba0bd7","block_type":"box","text":"Conflicts may also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":138,"box":{"x":69,"y":884,"width":787,"height":11}},{"id":"a08b4fb2-73a4-428d-bd2e-8b8139f324ec","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a short position by a Fund may impair the","page_number":138,"box":{"x":70,"y":899,"width":809,"height":11}},{"id":"f2d615f7-2ea4-432a-821e-32fe7a7cb574","block_type":"box","text":"II-91","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"034eb05b-3608-42b7-a961-702883edf580","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86407c25-796c-4139-b81b-a7de6bdf5ef8","block_type":"box","text":"price of the same security sold short by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":139,"box":{"x":70,"y":45,"width":805,"height":11}},{"id":"9976835a-4415-4cf7-85af-f8e7c1f687e8","block_type":"box","text":"purchase of a security or covering of a short position in a security by a Fund may increase the price of the same","page_number":139,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"b28da033-d299-433d-a468-5a409e36455f","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":139,"box":{"x":69,"y":75,"width":573,"height":11}},{"id":"14a1acaf-9b31-4426-8b45-3468be9f9890","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":139,"box":{"x":102,"y":98,"width":797,"height":11}},{"id":"1947e976-4ae9-40f6-accc-21d84bd1a0de","block_type":"box","text":"extend credit to different parts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":139,"box":{"x":69,"y":113,"width":791,"height":11}},{"id":"6e2dfc52-e386-475d-a707-fdc78282c446","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":139,"box":{"x":69,"y":128,"width":835,"height":11}},{"id":"4053903e-fb68-417f-a42a-887049646c78","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":139,"box":{"x":69,"y":143,"width":812,"height":11}},{"id":"acc1b5cb-fb98-469f-9174-9be6d3fb3788","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":139,"box":{"x":69,"y":158,"width":803,"height":11}},{"id":"a7fbe09b-00cf-409d-98a4-89af7fa038d4","block_type":"box","text":"Funds) hold positions in multiple parts of the capital structure of an issuer, BlackRock may not pursue certain","page_number":139,"box":{"x":70,"y":173,"width":783,"height":11}},{"id":"6ee03ac0-1489-4294-9504-65b5f5d73a6f","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":139,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"f0a68a39-a00a-4321-9d62-6d4dea735356","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":139,"box":{"x":70,"y":203,"width":777,"height":11}},{"id":"62a033c4-a44d-4405-a4b6-83dd0cfac9f6","block_type":"box","text":"particular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":139,"box":{"x":70,"y":218,"width":780,"height":12}},{"id":"173bcc14-676e-44a3-baf2-cbdf3271022e","block_type":"box","text":"business units or portfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":139,"box":{"x":69,"y":234,"width":802,"height":11}},{"id":"f66e7418-cece-4a63-97a5-fe319ac9c8f4","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":139,"box":{"x":69,"y":249,"width":817,"height":11}},{"id":"57207be8-29e9-45e4-b6de-a9fbed499407","block_type":"box","text":"Funds.","page_number":139,"box":{"x":70,"y":264,"width":44,"height":9}},{"id":"8b90aa5f-59cf-4df0-b57a-0767aa8229f1","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other funds","page_number":139,"box":{"x":102,"y":286,"width":755,"height":12}},{"id":"bc6118fc-6d33-4d42-bc16-1cd1d9734030","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same portfolio managers, which could","page_number":139,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"d84167f3-e166-4967-87b7-c126f564c52b","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":139,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"4b77ed32-b230-43c7-9724-09e170547e4b","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including portfolio managers.","page_number":139,"box":{"x":69,"y":332,"width":679,"height":11}},{"id":"7b9f64e9-19c3-4987-9af6-d8d43a631131","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":139,"box":{"x":101,"y":355,"width":760,"height":11}},{"id":"4ac1c769-49ec-4e37-b4d2-38bd9267ab06","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":139,"box":{"x":70,"y":370,"width":818,"height":11}},{"id":"5330d526-6c8a-4494-8de4-34205fe701d3","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":139,"box":{"x":68,"y":385,"width":836,"height":11}},{"id":"9f760fb0-8061-4822-b843-03a54e8157f1","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":139,"box":{"x":69,"y":400,"width":825,"height":11}},{"id":"2331197a-b6aa-465a-aa2c-ead90c95debe","block_type":"box","text":"to retain such third parties to provide services to the Fund.","page_number":139,"box":{"x":68,"y":415,"width":421,"height":11}},{"id":"72719395-37be-44fc-8c32-7eba471d9547","block_type":"box","text":"In certain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":139,"box":{"x":102,"y":438,"width":794,"height":11}},{"id":"137fe92c-3e59-4b84-a009-6ee3aaca2c02","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":139,"box":{"x":68,"y":453,"width":817,"height":11}},{"id":"207ae76e-95dc-45e8-8928-31fba49f1ec6","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":139,"box":{"x":70,"y":468,"width":797,"height":11}},{"id":"c382f56c-0aff-4351-a095-3ccfa28dd61c","block_type":"box","text":"based on each party’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":139,"box":{"x":69,"y":483,"width":826,"height":11}},{"id":"b29aab3c-f3a4-4f5a-a6f7-bf639ea0846e","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":139,"box":{"x":70,"y":498,"width":780,"height":11}},{"id":"eec6298a-0cdd-4fdb-a563-a69582221167","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":139,"box":{"x":69,"y":513,"width":791,"height":12}},{"id":"8ed7ea97-a77d-4a0a-a1fb-f6339b8f5889","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":139,"box":{"x":70,"y":529,"width":457,"height":11}},{"id":"26bbbe87-60a9-4e6f-817e-6dc0d317fcf5","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":139,"box":{"x":102,"y":551,"width":784,"height":11}},{"id":"216498aa-b764-4b2b-be58-058e9d9ea546","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":139,"box":{"x":69,"y":566,"width":840,"height":11}},{"id":"d4667544-f9e9-4fac-aaf0-151288ace574","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":139,"box":{"x":70,"y":581,"width":827,"height":12}},{"id":"82f7fd06-ad58-4c43-ae12-fcd1c5836648","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":139,"box":{"x":70,"y":596,"width":828,"height":12}},{"id":"afbc25f5-99f1-4ec5-a37f-599cca073acf","block_type":"box","text":"case.","page_number":139,"box":{"x":69,"y":614,"width":37,"height":7}},{"id":"45a3d9d4-a7d1-41c0-81c9-4735b5bef04e","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":139,"box":{"x":101,"y":634,"width":791,"height":12}},{"id":"401ef74a-d502-4d9d-ac8a-7e65294f587a","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":139,"box":{"x":70,"y":650,"width":824,"height":11}},{"id":"6608cf45-22a4-49e8-9507-6cb4bf803b6e","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":139,"box":{"x":69,"y":665,"width":798,"height":11}},{"id":"02315011-36c0-418e-9d9b-1650fced79b2","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":139,"box":{"x":69,"y":680,"width":828,"height":11}},{"id":"7dc31afb-fddc-439c-b790-460bc863ddec","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":139,"box":{"x":70,"y":695,"width":835,"height":11}},{"id":"b6582d29-a844-4cae-b0ea-07f3b413f129","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":139,"box":{"x":69,"y":710,"width":767,"height":11}},{"id":"1138c444-763b-4039-9a74-c7d4bd44f702","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":139,"box":{"x":102,"y":732,"width":766,"height":12}},{"id":"d3341e6e-4d0a-46b2-809f-284cf037cc0c","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":139,"box":{"x":70,"y":748,"width":786,"height":11}},{"id":"17c6b4e5-95c6-4b28-8846-ec6637fbe47c","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":139,"box":{"x":69,"y":763,"width":828,"height":11}},{"id":"3b63e1de-00bd-4858-ae3e-a664821902c4","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":139,"box":{"x":69,"y":778,"width":831,"height":11}},{"id":"5d6716ab-7761-4f11-a716-d4ae7805c770","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":139,"box":{"x":68,"y":793,"width":825,"height":11}},{"id":"de664231-6bb2-4a42-a83d-d566007731ac","block_type":"box","text":"when position limits have been reached. 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BlackRock will not be under any obligation, however, to effect","page_number":139,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"1f5da052-4c51-45a3-9c80-b56d0ad2f038","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. 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The","page_number":140,"box":{"x":69,"y":75,"width":762,"height":11}},{"id":"f3dbfab5-3a18-4cf6-a822-1c8f9bfaca5c","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":140,"box":{"x":70,"y":90,"width":839,"height":11}},{"id":"a2b95df9-57e6-4714-89a5-37dceed8a277","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":140,"box":{"x":70,"y":105,"width":795,"height":11}},{"id":"d98708d7-a992-40e2-95d3-6e2012fa54ca","block_type":"box","text":"managing a Fund.","page_number":140,"box":{"x":69,"y":120,"width":124,"height":12}},{"id":"153fd443-77e0-4876-a181-9dd65498b981","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":140,"box":{"x":101,"y":143,"width":751,"height":11}},{"id":"8d57697f-4955-4dfa-8004-5dda387637a5","block_type":"box","text":"advisors. 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The net asset","page_number":140,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"6aeac1cd-1b5d-4db4-9797-c28c2b01e66e","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":140,"box":{"x":68,"y":188,"width":785,"height":11}},{"id":"d06642b0-b256-44a0-9806-899c7fc9209d","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":140,"box":{"x":70,"y":203,"width":481,"height":12}},{"id":"62b57647-a7a4-437a-aae4-ca47b6d4dfa9","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":140,"box":{"x":102,"y":226,"width":754,"height":11}},{"id":"a9b6fc40-08a3-4c70-ab0a-9e9fb8c86d3c","block_type":"box","text":"employees of other business units or entities within BlackRock. 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In addition, the purchase, holding and sale of such investments by a","page_number":140,"box":{"x":69,"y":355,"width":813,"height":11}},{"id":"301a4942-dc27-4543-8184-30e8070102ab","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":140,"box":{"x":70,"y":370,"width":344,"height":11}},{"id":"d0179668-9d07-4c76-aac6-dd557fe17f29","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":140,"box":{"x":102,"y":392,"width":741,"height":12}},{"id":"74fd8678-6687-4f13-af78-6382d9003f6f","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":140,"box":{"x":70,"y":407,"width":824,"height":12}},{"id":"5d1d2968-3d11-4e21-a729-e8c4ee432694","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":140,"box":{"x":68,"y":423,"width":825,"height":11}},{"id":"325ad8c9-026f-485f-98dd-12aa29a7b94c","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":140,"box":{"x":69,"y":438,"width":777,"height":11}},{"id":"8f6e0a7a-f8fe-4d9e-9875-f51be5043bca","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":140,"box":{"x":69,"y":453,"width":810,"height":11}},{"id":"8f2dd612-bbbd-4520-b5de-04f2f3f5f134","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":140,"box":{"x":69,"y":468,"width":784,"height":11}},{"id":"eb9eebfb-6b90-49a8-9fe5-143f26856184","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":140,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"2d70a85a-04f7-48cf-b56c-85c828ee8671","block_type":"box","text":"under management for BlackRock.","page_number":140,"box":{"x":69,"y":498,"width":243,"height":11}},{"id":"bc4129b6-5777-4ca7-aa82-36bf74ddc408","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":140,"box":{"x":101,"y":521,"width":773,"height":11}},{"id":"95fe7fe8-36ab-41d4-a9d9-77caa02a42ec","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":140,"box":{"x":69,"y":536,"width":797,"height":11}},{"id":"89f07d5b-1ef8-4542-ad88-dceda8f804fd","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":140,"box":{"x":69,"y":551,"width":817,"height":11}},{"id":"9a000c0b-8a62-41c0-99f6-973e289ce038","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":140,"box":{"x":68,"y":566,"width":837,"height":11}},{"id":"bfbc1131-5bdd-43a8-b39c-ca9ddf1d8a11","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":140,"box":{"x":70,"y":582,"width":781,"height":11}},{"id":"0bd4d8e2-3d32-4362-a27b-4de241b303ea","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":140,"box":{"x":101,"y":604,"width":779,"height":11}},{"id":"d8b81764-63ce-4507-98b5-0985fabe4215","block_type":"box","text":"other commercial capacities for a Fund. 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BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":140,"box":{"x":69,"y":869,"width":793,"height":11}},{"id":"38ffc587-bc34-436e-a040-d13123203cef","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":140,"box":{"x":69,"y":884,"width":835,"height":11}},{"id":"99789c26-6dbd-433c-949b-6ce3f2906fe6","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":140,"box":{"x":70,"y":899,"width":374,"height":11}},{"id":"06b6e1a0-edbf-4a3a-879c-9daf7cdb057d","block_type":"box","text":"II-93","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"92d5180d-b6cc-45cb-a083-dd81b6c49a15","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a01c89ef-2817-4009-952d-10a97abddce8","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. 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As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":141,"box":{"x":70,"y":166,"width":814,"height":11}},{"id":"5eb2b97f-a0cc-4a0f-9be9-8c520d37acfe","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":141,"box":{"x":69,"y":181,"width":660,"height":11}},{"id":"2e0179db-2188-4e45-b024-00e649c20cdc","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":141,"box":{"x":101,"y":203,"width":767,"height":12}},{"id":"fb948976-001d-4fdf-b7e6-4c15f948a4b6","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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As a result, the management of program-wide exposure as well as","page_number":141,"box":{"x":69,"y":309,"width":786,"height":11}},{"id":"55db2d1b-614d-4e61-ae00-8a0dfceffc4f","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":141,"box":{"x":70,"y":324,"width":796,"height":12}},{"id":"04ab245e-13ef-434c-b0b5-ea32c8a1da4e","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":141,"box":{"x":69,"y":339,"width":799,"height":12}},{"id":"b1c87857-6e6c-4d1b-bb2a-4795729081e9","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":141,"box":{"x":69,"y":355,"width":356,"height":11}},{"id":"580e0ace-866f-443c-87dd-c6460f0e7f16","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":141,"box":{"x":102,"y":377,"width":801,"height":12}},{"id":"63133ffd-2a9f-47e8-8d3a-e98ff2858ca9","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":141,"box":{"x":68,"y":392,"width":817,"height":12}},{"id":"6d4f9aed-4d4f-4b42-ba5e-1636df7c538e","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":141,"box":{"x":69,"y":408,"width":784,"height":11}},{"id":"75b61ad5-fc36-4954-a77f-05488c73aa31","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":141,"box":{"x":69,"y":423,"width":789,"height":11}},{"id":"fa7d9e37-a9a2-4b42-8c7b-02315c391c87","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":141,"box":{"x":70,"y":438,"width":783,"height":11}},{"id":"660a9333-a472-46eb-bdfe-150b95df5052","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":141,"box":{"x":70,"y":453,"width":790,"height":11}},{"id":"f77c49db-c1e2-4b34-b823-738e5cf859f2","block_type":"box","text":"regulation.","page_number":141,"box":{"x":69,"y":468,"width":73,"height":11}},{"id":"27397db5-cfb5-492f-a47d-b45c1f155404","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":141,"box":{"x":102,"y":491,"width":777,"height":11}},{"id":"04a45c03-7e69-4ad0-9313-3a9e9c777382","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":141,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"f669f261-b665-4fd5-81ad-669a3f793ca3","block_type":"box","text":"various program limits (i.e. indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":141,"box":{"x":68,"y":521,"width":818,"height":11}},{"id":"d60c90f8-2011-4414-9b10-a9fc17591622","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":141,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"af4732d4-cef2-4c12-b9b2-5aa536d8568b","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":141,"box":{"x":69,"y":551,"width":836,"height":11}},{"id":"bcdda2cc-bc19-4bb1-acf8-bd8790804dca","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":141,"box":{"x":70,"y":566,"width":780,"height":11}},{"id":"867a0aee-7956-4b7b-bf46-690af139b498","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":141,"box":{"x":70,"y":581,"width":820,"height":12}},{"id":"8d88afcc-ea64-4004-8a52-f2524a64b8d0","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":141,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"7fcff3e7-0b06-4485-8f01-ed02b7091fb1","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":141,"box":{"x":69,"y":612,"width":444,"height":11}},{"id":"8eaab49f-7af6-4a5d-8b48-18be87e1bb7c","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":141,"box":{"x":102,"y":634,"width":734,"height":12}},{"id":"fc6bb16f-c968-4fc0-806f-90ae290bf0d9","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":141,"box":{"x":70,"y":649,"width":840,"height":12}},{"id":"97ccabbe-7341-4dc0-b849-6b4b6e702ada","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":141,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"16f4c510-615c-485f-bb53-4826f9aecc0d","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":141,"box":{"x":69,"y":680,"width":788,"height":11}},{"id":"bec7555b-1501-4fdd-811d-b8bc7a240371","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":141,"box":{"x":70,"y":695,"width":426,"height":11}},{"id":"9e1847c1-de94-4c4f-be4d-0a7ce5471177","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":141,"box":{"x":102,"y":717,"width":763,"height":12}},{"id":"86d9f914-ebca-46c3-9a76-3410ff3d40c7","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":141,"box":{"x":69,"y":732,"width":828,"height":12}},{"id":"ffb89692-1444-41d4-ae9f-4aa594849a87","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":141,"box":{"x":68,"y":748,"width":767,"height":11}},{"id":"c21c96d4-fceb-4c6a-8c3a-b70621a67295","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":141,"box":{"x":69,"y":763,"width":828,"height":11}},{"id":"953f38ce-5575-4d65-896b-8f7cf4ae7832","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":141,"box":{"x":68,"y":778,"width":672,"height":11}},{"id":"f0c1893a-8026-4273-80ad-33af9b55806e","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":141,"box":{"x":101,"y":801,"width":767,"height":11}},{"id":"b3322bfc-35ae-449c-a6a6-56a0e5aa22ce","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":141,"box":{"x":69,"y":816,"width":832,"height":11}},{"id":"7519ba43-217c-452b-8548-df526140d4d9","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":141,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"47e6edc6-c948-460a-91d4-01f94940a0e4","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":141,"box":{"x":69,"y":846,"width":836,"height":11}},{"id":"6989e62e-8e21-48fc-bada-4e10e2e52490","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":141,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"cfc99a13-8574-4160-aa6d-6fbaad75da12","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":141,"box":{"x":69,"y":876,"width":812,"height":11}},{"id":"e0b11d53-f457-4e81-ae80-444f4b4b4600","block_type":"box","text":"than through client commissions.","page_number":141,"box":{"x":68,"y":891,"width":237,"height":12}},{"id":"609d59f1-02c6-46dd-bc44-64226bcd90e4","block_type":"box","text":"II-94","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fb419a38-85e4-45c2-8e48-ecd43128a91d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"643f72c4-5f4d-4d77-8ce3-e1091fe0009e","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":142,"box":{"x":102,"y":45,"width":770,"height":11}},{"id":"4efe9fae-b250-41d0-bb5f-e41b452c453f","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":142,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"187dee9a-35a9-4a22-9120-00cc2c370b98","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":142,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"f703f457-9b7f-4ec8-b5ac-5219b5c256ef","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":142,"box":{"x":70,"y":90,"width":780,"height":11}},{"id":"26af7900-9350-475c-ab26-6db9c6bc9ef1","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":142,"box":{"x":69,"y":105,"width":795,"height":11}},{"id":"9c8307c5-c798-47a0-8312-408fc271fbcc","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":142,"box":{"x":69,"y":120,"width":815,"height":11}},{"id":"7000faac-b3e7-4207-8449-5e3da8ebea7b","block_type":"box","text":"research-oriented software and other services and products.","page_number":142,"box":{"x":69,"y":135,"width":430,"height":11}},{"id":"b2798e05-f3a2-488e-acf3-3eda6b213b36","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":142,"box":{"x":102,"y":158,"width":785,"height":11}},{"id":"0f816a04-1f9a-4f26-8f17-cae17c888e5d","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":142,"box":{"x":70,"y":173,"width":768,"height":11}},{"id":"3b65ab4a-4413-41bf-a9e0-9b3931837556","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":142,"box":{"x":69,"y":188,"width":826,"height":12}},{"id":"c95b431b-2678-4b00-891f-5aa95d80b40c","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":142,"box":{"x":69,"y":203,"width":818,"height":12}},{"id":"cf70c9b1-af8c-45df-9f13-7e47f3f641fd","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":142,"box":{"x":69,"y":219,"width":821,"height":11}},{"id":"02dee95e-0bd7-484d-b9fc-9d0ba2964829","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":142,"box":{"x":68,"y":234,"width":815,"height":11}},{"id":"b9d4a599-8289-4cc2-9fb8-901b8ff0eba5","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":142,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"8812eaa3-7ba9-4fa2-953f-8529ff5e7e82","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":142,"box":{"x":69,"y":264,"width":804,"height":11}},{"id":"2708ebe9-46eb-4b85-9eba-5b289abf83d4","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":142,"box":{"x":70,"y":279,"width":819,"height":11}},{"id":"b3f055ef-2510-4b92-bedb-5753df325c86","block_type":"box","text":"and services itself.","page_number":142,"box":{"x":69,"y":294,"width":134,"height":9}},{"id":"8e5eae75-0df6-42ad-94df-624993dfe1c5","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":142,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"f14db724-c8b0-4658-80b0-0254776e2532","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":142,"box":{"x":68,"y":332,"width":805,"height":11}},{"id":"3ef54af5-ff0f-4fa3-a7a3-738e567eda14","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":142,"box":{"x":69,"y":347,"width":833,"height":11}},{"id":"1836d989-fe65-4d8e-ae28-f761add9e308","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":142,"box":{"x":68,"y":362,"width":836,"height":11}},{"id":"4af22580-ad4d-46b6-931e-3e1e687290c0","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":142,"box":{"x":69,"y":377,"width":760,"height":12}},{"id":"b6209051-93d1-49ed-9bb8-55b64558ae12","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":142,"box":{"x":68,"y":392,"width":803,"height":12}},{"id":"79813e4a-b538-410a-8379-aed0837f162c","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":142,"box":{"x":69,"y":407,"width":807,"height":12}},{"id":"e2a0ea54-5120-47d2-966f-54d95ca4b983","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":142,"box":{"x":69,"y":423,"width":760,"height":11}},{"id":"a2778a33-6f7d-4788-bedd-2f2b7df00f32","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":142,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"b1e6a4d9-62c6-4692-a7c7-c44e45208af4","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":142,"box":{"x":70,"y":461,"width":767,"height":11}},{"id":"8683e7e3-54bc-4320-8415-a9aad6430396","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":142,"box":{"x":69,"y":475,"width":794,"height":12}},{"id":"edbd34ea-6a1f-4dba-a2ba-4a6271e5d83f","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":142,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"28c882fe-234a-40d6-afde-24576d9a47f2","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":142,"box":{"x":68,"y":506,"width":821,"height":11}},{"id":"fdac69df-e725-4d18-b6e1-3d45f971d90b","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":142,"box":{"x":68,"y":521,"width":833,"height":11}},{"id":"b0c6cb4a-e17f-47a0-956d-36560784ef8e","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":142,"box":{"x":69,"y":536,"width":812,"height":11}},{"id":"4b1d9e87-81cb-4fe8-9360-522765fa15b4","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":142,"box":{"x":69,"y":551,"width":809,"height":11}},{"id":"ef8af463-4ebd-4f37-bd77-78eadbafab65","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":142,"box":{"x":68,"y":566,"width":519,"height":11}},{"id":"fa41600e-ba8b-4257-b8e7-4e84b78683b0","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":142,"box":{"x":102,"y":589,"width":793,"height":11}},{"id":"e388bd6f-0de0-46c5-a2c1-b2f1285e85e0","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":142,"box":{"x":69,"y":604,"width":782,"height":11}},{"id":"a3dabaf3-24eb-4bfa-94aa-3d394f53287c","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":142,"box":{"x":69,"y":619,"width":710,"height":11}},{"id":"5c9590db-cc2b-49de-8b22-8e09cc6a6940","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":142,"box":{"x":102,"y":642,"width":792,"height":11}},{"id":"7aaa01b9-a602-4f73-9bfd-6af232365983","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":142,"box":{"x":68,"y":657,"width":784,"height":11}},{"id":"c0f1dcf4-9fa1-4708-987b-d5819ffc0dd5","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless,","page_number":142,"box":{"x":69,"y":672,"width":719,"height":11}},{"id":"386c1d5c-4506-4b8d-8eec-c55d31fb2c82","block_type":"box","text":"notwithstanding such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have","page_number":142,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"3ded346d-b9a9-404e-9aae-fcba52d24869","block_type":"box","text":"the effect of favoring the interests of other clients or businesses of other divisions or units of BlackRock, provided","page_number":142,"box":{"x":68,"y":710,"width":815,"height":11}},{"id":"e047b945-30b5-4c3a-a6b5-3cbc496f62fb","block_type":"box","text":"that BlackRock believes such voting decisions to be in accordance with its fiduciary obligations. For a more detailed","page_number":142,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"7f575f43-b8da-4bd1-a1ba-9b62e9867559","block_type":"box","text":"discussion of these policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":142,"box":{"x":69,"y":740,"width":635,"height":11}},{"id":"e2645ab3-e173-4f91-8eba-7955488cfb34","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":142,"box":{"x":102,"y":763,"width":757,"height":11}},{"id":"5b535cef-7e0a-45ce-a4d1-f10595869769","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":142,"box":{"x":69,"y":778,"width":825,"height":11}},{"id":"e343ffb8-205c-4955-9e2f-1bf98e274134","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":142,"box":{"x":70,"y":793,"width":837,"height":11}},{"id":"cfa39b88-312e-4ebd-95ad-978c000e640c","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":142,"box":{"x":69,"y":808,"width":774,"height":11}},{"id":"9baab256-2f91-4ac2-979b-5d7f3fddd441","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":142,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"f996589b-c13b-4fe3-a6a8-b3fc51b0c51f","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":142,"box":{"x":69,"y":838,"width":830,"height":12}},{"id":"21481596-2bc9-4fe7-8f0a-80a5e77e5933","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to","page_number":142,"box":{"x":69,"y":853,"width":831,"height":12}},{"id":"83e42e29-2aae-42b9-bb16-9c6c6d9ea67c","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":142,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"cc652916-a96a-4571-80f3-85be9900406e","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":142,"box":{"x":69,"y":884,"width":355,"height":11}},{"id":"950a769c-3ee9-4ff7-b939-709975d031d7","block_type":"box","text":"II-95","page_number":142,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8119c6a2-a479-4152-ac1b-2b99e9c71a6e","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7708ed9d-286f-4fe8-8c53-b6681eb9da61","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":143,"box":{"x":102,"y":45,"width":742,"height":11}},{"id":"ec88eb92-3da3-4c2a-8d31-7aeff25cea48","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":143,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"1a76b311-0d50-4568-b837-e27165fbb0f6","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":143,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"4d7df0fc-27f4-4f25-b467-e4f234602935","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":143,"box":{"x":69,"y":90,"width":816,"height":11}},{"id":"405083b2-d303-4e7f-94e0-1605d1915f07","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":143,"box":{"x":69,"y":105,"width":806,"height":11}},{"id":"48df86df-6866-4f59-b332-edd84a8fd8d3","block_type":"box","text":"these activities. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":143,"box":{"x":68,"y":460,"width":803,"height":12}},{"id":"30cf6a8c-b692-41c0-804b-f272cb3f94a7","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":143,"box":{"x":69,"y":476,"width":831,"height":11}},{"id":"eb4224d7-5780-46e6-ae69-adc14ae78fac","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":143,"box":{"x":69,"y":491,"width":811,"height":11}},{"id":"b9ed0b81-2dd1-4d60-8d96-763f3b99cbd1","block_type":"box","text":"(the “Valuation Procedures”). 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The fair value of one or more assets or","page_number":143,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"de6344a3-686e-455b-bd5a-98a91581ca8e","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":143,"box":{"x":70,"y":612,"width":800,"height":11}},{"id":"0794ff2a-0878-4104-a4bc-14b110dcf9b9","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. 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In connection with any","page_number":143,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"ff8d7c88-10f7-4429-b046-bd8fa9636d0c","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":143,"box":{"x":69,"y":725,"width":833,"height":11}},{"id":"9fbd0ac0-a1f4-4c18-885b-c8a9200a821c","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":143,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"cba513e6-bf9d-4d59-a11c-9188a8dc13bb","block_type":"box","text":"some additional expenses.","page_number":143,"box":{"x":69,"y":755,"width":190,"height":11}},{"id":"309b1d2f-62ac-4715-a8fa-6931c100de8b","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":143,"box":{"x":102,"y":778,"width":787,"height":11}},{"id":"6fb07589-d642-449f-a028-173c4b83aff4","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":143,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"1ae6c397-21f2-4c77-8bfb-7786365ddb7d","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":143,"box":{"x":69,"y":808,"width":764,"height":11}},{"id":"1f4f1d2e-fbf5-49fe-a85c-976a55670616","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":143,"box":{"x":69,"y":823,"width":809,"height":11}},{"id":"40ccab1e-f595-46c9-bd33-54290dcc0b8e","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":143,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"15ca853d-e855-4ae6-a39c-d19cac84cd79","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":143,"box":{"x":70,"y":853,"width":828,"height":12}},{"id":"b0faa861-d648-46cc-9402-3446d61b4b1c","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":143,"box":{"x":69,"y":869,"width":825,"height":11}},{"id":"0dffe643-a8cf-44c0-89af-c971c84754d9","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":143,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"1acfb93f-39e6-496a-a618-442ecf7f7341","block_type":"box","text":"II-96","page_number":143,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2545f00-c2d4-43a7-9985-5609a8f394c3","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1b698078-9c8d-4d52-bad6-7b52ba90df84","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":144,"box":{"x":70,"y":45,"width":836,"height":11}},{"id":"495733f6-c49e-45ee-b1b2-93124048214e","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":144,"box":{"x":69,"y":60,"width":352,"height":11}},{"id":"241052a4-bd7b-4604-a427-c29eeb8d8f63","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":144,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"d9430699-74ee-4631-87b8-b5163d5b84f6","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":144,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"c6c35a30-87e3-4f6c-aba4-aed087f61407","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":144,"box":{"x":68,"y":113,"width":839,"height":10}},{"id":"72327a81-8b13-428f-b0d8-d820d61ecde3","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":144,"box":{"x":69,"y":128,"width":824,"height":11}},{"id":"63aadd30-4e72-4226-9f83-5a74eca12a8b","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":144,"box":{"x":68,"y":143,"width":824,"height":11}},{"id":"5cf41179-4da9-4607-ab65-87ec7d8c809e","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":144,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"1f553775-5366-4586-b2ae-d8f43939aa95","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":144,"box":{"x":68,"y":173,"width":810,"height":11}},{"id":"d145e1ff-0ca7-4056-ab28-7d0a7bf36f2c","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":144,"box":{"x":69,"y":188,"width":834,"height":12}},{"id":"23629abd-8047-4331-9ca1-3026f8556a48","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":144,"box":{"x":68,"y":203,"width":782,"height":12}},{"id":"3671ac58-9a38-47db-8551-47a06924d711","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":144,"box":{"x":70,"y":218,"width":807,"height":12}},{"id":"dd28c6e8-6fec-41d3-9c76-009200025300","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":144,"box":{"x":70,"y":234,"width":804,"height":11}},{"id":"bb6978b2-d845-4392-9322-510093c2334e","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":144,"box":{"x":69,"y":249,"width":799,"height":11}},{"id":"065eeddd-a751-4ae8-81f0-6f3bb505dc73","block_type":"box","text":"services or has proprietary positions. 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Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":144,"box":{"x":68,"y":370,"width":773,"height":11}},{"id":"fbe4b096-1e9c-4132-b0e0-fbf44acfdf3e","block_type":"box","text":"securities of which the Funds wish to purchase or sell. 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Certain portfolio management teams within BlackRock may","page_number":144,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"84f9c7e7-9439-4bd1-bca1-6b8802c04228","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":144,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"4b1b4a41-10ac-49ed-b799-0b657a26ef5d","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":144,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"1477890d-3cf6-4784-bf62-b894396ffeea","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":144,"box":{"x":68,"y":559,"width":797,"height":11}},{"id":"1345df0b-aa5e-45ee-99ca-32f938b2e071","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":144,"box":{"x":70,"y":574,"width":667,"height":11}},{"id":"b35e53b1-097d-41f3-91d2-ac3da975dd7c","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":144,"box":{"x":102,"y":596,"width":794,"height":12}},{"id":"acf50522-79ef-40f6-b10c-6b174b06d0de","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":144,"box":{"x":69,"y":612,"width":791,"height":11}},{"id":"af31dbd9-a947-4467-8099-9e85ebd539f3","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":144,"box":{"x":70,"y":627,"width":812,"height":11}},{"id":"3663af3d-7dbf-4922-9d04-b37423206735","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":144,"box":{"x":70,"y":642,"width":818,"height":11}},{"id":"c59d1da8-a39f-4124-8741-2a2eb460642f","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":144,"box":{"x":70,"y":657,"width":830,"height":11}},{"id":"1e64c2b6-4854-4b72-ae60-68d5f3048d7a","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":144,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"7b713e77-f535-48fb-9608-18dba8dc380d","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":144,"box":{"x":70,"y":687,"width":824,"height":11}},{"id":"d1597e8e-fa38-44ab-95c0-a01a0dd0abd6","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":144,"box":{"x":68,"y":702,"width":472,"height":11}},{"id":"fd3088af-e5ed-4d4b-9bf0-b0d7f7579700","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":144,"box":{"x":102,"y":725,"width":744,"height":11}},{"id":"40bd1153-aed0-4ddb-b150-7bcb988482ec","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":144,"box":{"x":70,"y":740,"width":775,"height":11}},{"id":"d4eb5683-b443-40c0-b806-7da1170be8c2","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":144,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"7bfac0df-8fa0-458d-afa9-df1ae58f48a1","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":144,"box":{"x":68,"y":770,"width":779,"height":11}},{"id":"3f2a559a-6273-423c-8a4c-35c7ac3ecb66","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":144,"box":{"x":69,"y":785,"width":771,"height":12}},{"id":"1d157974-7730-4258-9180-105e3b9014ee","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":144,"box":{"x":68,"y":801,"width":812,"height":11}},{"id":"35984a13-6867-4dcd-858f-a406e7f90a51","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":144,"box":{"x":70,"y":816,"width":803,"height":11}},{"id":"7e04ac62-b26b-4b3e-88e1-058e7a485752","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":144,"box":{"x":69,"y":831,"width":813,"height":11}},{"id":"317a6ec8-cdba-44d1-b811-6fd5f73779fd","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":144,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"d8aaa522-a120-4f15-b1ac-53b04b89d9a6","block_type":"box","text":"a barrier.","page_number":144,"box":{"x":69,"y":861,"width":62,"height":9}},{"id":"1f1ef9f1-de6d-4724-ad15-9710bf8ece16","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":144,"box":{"x":101,"y":884,"width":788,"height":11}},{"id":"a54145f5-c1ed-4eaf-9adb-89d92f9c7fc7","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":144,"box":{"x":69,"y":899,"width":827,"height":11}},{"id":"bf55e97f-38e7-43ae-a1ee-74c613c4fb0c","block_type":"box","text":"II-97","page_number":144,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"58171be1-1358-4d70-9444-2f7df19de925","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43e0edb7-1860-4424-aa69-6344ba274ef4","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":145,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"5b457cfe-8556-47c5-840c-f16c17e915c0","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":145,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"0f9c946a-ec49-4bf7-9a09-ef3f1d8aa8ea","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":145,"box":{"x":69,"y":75,"width":806,"height":11}},{"id":"a549acc9-ac9c-4b08-ab81-79b2e122091e","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":145,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"5d63cb0c-f1ae-4556-b380-32919e8dc720","block_type":"box","text":"that operate in certain industries (e.g., banking, insurance, and utilities) or in certain emerging or international","page_number":145,"box":{"x":68,"y":105,"width":789,"height":11}},{"id":"379b7eba-6b6d-43bf-a84e-bacbf364208b","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (e.g., with mechanisms such as poison pills","page_number":145,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"d1831102-f553-4526-8348-8733771b03ff","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":145,"box":{"x":70,"y":135,"width":816,"height":11}},{"id":"3f040c0a-b357-4fb4-bd35-e3e0e477dae1","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":145,"box":{"x":70,"y":150,"width":825,"height":12}},{"id":"d4885a9f-df35-499a-9028-38957a68e6f5","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":145,"box":{"x":69,"y":166,"width":837,"height":11}},{"id":"3d5d6f0d-44a1-41ac-b446-5a8b1fa14f7c","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":145,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"7fbd2dae-dbbb-468b-a9a3-5610c314e29d","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":145,"box":{"x":69,"y":196,"width":775,"height":11}},{"id":"cf9d6910-424b-4f9f-8890-b68f0eedddab","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":145,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"9869e7a9-e10f-40ba-96b0-b68893153545","block_type":"box","text":"seek to make indirect investments (e.g., using derivatives) on behalf of its clients to receive exposure to certain","page_number":145,"box":{"x":69,"y":226,"width":798,"height":11}},{"id":"770c71d2-9d67-44d6-a52f-31a16789f44b","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":145,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"6dcc5455-8e24-4422-886b-94b4b94e6bd3","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":145,"box":{"x":69,"y":257,"width":795,"height":11}},{"id":"23a66693-e081-487a-b419-517f21b3d9cf","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":145,"box":{"x":68,"y":271,"width":799,"height":12}},{"id":"17727968-ee2d-4910-9ac9-e9eb5650350d","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":145,"box":{"x":69,"y":287,"width":767,"height":11}},{"id":"a0f56249-1ee6-4f40-89a3-7c05dc933a18","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":145,"box":{"x":69,"y":302,"width":829,"height":11}},{"id":"1a202279-b514-49a9-afd1-445622524af0","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":145,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"27aba559-b565-49c8-83f4-1c10779004b1","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":145,"box":{"x":102,"y":339,"width":783,"height":12}},{"id":"09209d60-5966-4f81-90ab-0dce4035abd9","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":145,"box":{"x":69,"y":355,"width":808,"height":11}},{"id":"fab13c58-40b9-445a-90d9-80883eed842a","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":145,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"7305e2d8-08d3-41b0-a7a8-a55e1cc7ab00","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":145,"box":{"x":70,"y":385,"width":818,"height":11}},{"id":"9a33fdf9-8b7e-4da2-9f76-2d203c350d4e","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":145,"box":{"x":69,"y":400,"width":821,"height":11}},{"id":"f2fa07fd-5e93-4484-a9c5-35ee181e949b","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":145,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"20d8108a-662f-4403-8968-2656b02b7d7d","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":145,"box":{"x":70,"y":430,"width":839,"height":11}},{"id":"e9c9ecb4-76a5-4f64-9bf6-e76a09079986","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":145,"box":{"x":69,"y":445,"width":826,"height":11}},{"id":"afbb5b3a-22da-4bef-8113-f5fc874fd62a","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":145,"box":{"x":69,"y":460,"width":807,"height":12}},{"id":"676dfe18-7190-493a-9293-24b78bbea97a","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":145,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"41027561-86ad-42f5-89ac-0dd65f97c3d5","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":145,"box":{"x":69,"y":491,"width":765,"height":11}},{"id":"30b27308-96b0-4dec-9a53-5b83e626c5cf","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":145,"box":{"x":69,"y":506,"width":781,"height":11}},{"id":"3d155830-f1dd-45eb-b7d3-a9611c71727e","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":145,"box":{"x":69,"y":521,"width":796,"height":11}},{"id":"226a49e8-1c4f-4c0d-8445-f1f7ef4b1676","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":145,"box":{"x":69,"y":536,"width":720,"height":11}},{"id":"b9d507d5-5b25-46d2-b675-61f94a03cb38","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":145,"box":{"x":101,"y":559,"width":807,"height":11}},{"id":"7dfaa900-a438-4b61-874d-3b054552fb41","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":145,"box":{"x":70,"y":574,"width":810,"height":11}},{"id":"0e503678-33f7-4531-9d3e-b072846a9005","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":145,"box":{"x":70,"y":589,"width":829,"height":11}},{"id":"a98b6a68-2291-44ef-899f-6ec6a6b71d66","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":145,"box":{"x":69,"y":604,"width":824,"height":11}},{"id":"4bce93cf-be51-4c44-88f7-912eadea2ca1","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":145,"box":{"x":68,"y":619,"width":841,"height":11}},{"id":"421ecace-82b5-43de-bc53-989f107c07a6","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":145,"box":{"x":69,"y":634,"width":770,"height":12}},{"id":"572e0281-e501-4938-9da2-2ed045e4a5da","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":145,"box":{"x":69,"y":650,"width":769,"height":10}},{"id":"49ea0554-a076-475c-b7fe-b32bdb348ed0","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":145,"box":{"x":70,"y":665,"width":794,"height":11}},{"id":"051f92d0-229f-4dc6-bf09-010c526bc21f","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":145,"box":{"x":69,"y":680,"width":757,"height":11}},{"id":"0ad2dd67-cd8a-497f-a475-8ca2d2c9784f","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":145,"box":{"x":69,"y":695,"width":807,"height":11}},{"id":"a5ef126a-783d-4348-9616-e1de41b8012b","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":145,"box":{"x":69,"y":710,"width":833,"height":11}},{"id":"0ac7ed66-6a8f-4937-b1a1-638dc0af5f43","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":145,"box":{"x":69,"y":725,"width":827,"height":11}},{"id":"7bba5adf-e92f-48a2-98f8-227415485b62","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":145,"box":{"x":68,"y":740,"width":803,"height":11}},{"id":"b51f522b-a72a-44bf-b9e8-1155ece670bb","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":145,"box":{"x":70,"y":755,"width":802,"height":11}},{"id":"2d282be4-0a80-4302-97b2-05b00e7a0591","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":145,"box":{"x":69,"y":771,"width":826,"height":11}},{"id":"7250d48a-ac04-4a94-8959-918d4992b62d","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":145,"box":{"x":69,"y":785,"width":834,"height":11}},{"id":"3adb824d-b10c-4da0-8894-f0e491c393ac","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":145,"box":{"x":102,"y":808,"width":795,"height":11}},{"id":"719089fb-c751-4513-a1e8-c350a9df808f","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":145,"box":{"x":69,"y":823,"width":831,"height":12}},{"id":"d3fce39e-fd06-43f3-a4fd-f7b5eb97ddaa","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":145,"box":{"x":69,"y":838,"width":566,"height":12}},{"id":"5872b2e6-7c1d-4d8e-acb7-575de6368edd","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":145,"box":{"x":102,"y":861,"width":798,"height":11}},{"id":"6b4ea88e-1b31-4efc-a730-5e7125778906","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":145,"box":{"x":69,"y":876,"width":823,"height":11}},{"id":"c5411725-d9da-40ec-8f50-c32e5b1bf25c","block_type":"box","text":"strategy with respect to such security or asset.","page_number":145,"box":{"x":69,"y":891,"width":333,"height":12}},{"id":"2c34fb33-025f-4ab7-82ac-508cbc2b9b2f","block_type":"box","text":"II-98","page_number":145,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3fc2ce35-b085-432b-bcd1-a42698a9d706","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7db98ac-ace9-4301-bee0-64362336b220","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":146,"box":{"x":102,"y":45,"width":785,"height":11}},{"id":"311c0bac-1b5b-4aec-86c9-61402c26eb57","block_type":"box","text":"license and use such indices as part of their investment strategy. Index based funds that seek to track the","page_number":146,"box":{"x":70,"y":60,"width":760,"height":11}},{"id":"86e67eaa-426b-4594-ab7a-0be8a1d3c802","block_type":"box","text":"performance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":146,"box":{"x":70,"y":75,"width":796,"height":11}},{"id":"d4533b43-913e-45da-8a86-8c3c105d2c71","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":146,"box":{"x":70,"y":90,"width":830,"height":11}},{"id":"a15634ec-fac0-46dd-90af-5499e54891ad","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":146,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"747a724c-b22d-427c-9771-760a86868938","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":146,"box":{"x":68,"y":120,"width":829,"height":11}},{"id":"f2a33b5b-6c55-4adf-97b5-9fda650b76ec","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":146,"box":{"x":69,"y":135,"width":784,"height":12}},{"id":"b2446883-7817-450e-9a54-645c9eb61447","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":146,"box":{"x":70,"y":151,"width":797,"height":11}},{"id":"1cb3329f-96a7-4ffd-b231-527abc048cea","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":146,"box":{"x":70,"y":166,"width":837,"height":11}},{"id":"89311166-f9a8-468e-b257-f5e15d9f4c35","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":146,"box":{"x":70,"y":181,"width":746,"height":11}},{"id":"e87bf591-44da-4cba-8b2b-6dd4bd1fb2dd","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (e.g., custodians,","page_number":146,"box":{"x":102,"y":204,"width":805,"height":11}},{"id":"f7065bf3-667f-43a6-9268-1bc473a4d274","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":146,"box":{"x":69,"y":218,"width":756,"height":12}},{"id":"cc29ed13-68fd-4e00-a848-859c9f216a39","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":146,"box":{"x":69,"y":234,"width":836,"height":11}},{"id":"950ed4d6-3944-4758-a0c4-32c739cab989","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":146,"box":{"x":69,"y":249,"width":772,"height":11}},{"id":"7cda70e1-7d7d-4af1-8d5d-77cba81eb092","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":146,"box":{"x":70,"y":264,"width":800,"height":11}},{"id":"fe7799ec-2809-400b-a28b-21520a6f5a59","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":146,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"1f445dac-c601-4a8c-8486-4878682054c0","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":146,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"4eb1060b-d1cc-4873-9f18-216481791d72","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":146,"box":{"x":70,"y":309,"width":785,"height":11}},{"id":"7d9ac5b0-055b-43e9-8352-0395f20e3a80","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":146,"box":{"x":70,"y":325,"width":786,"height":11}},{"id":"984e1954-b634-4169-a6ba-2c81a9bfda0d","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":146,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"d654b366-b06c-4759-be36-9dbd587832f2","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":146,"box":{"x":69,"y":355,"width":809,"height":11}},{"id":"7ff601e3-de4a-4b43-8f86-c23c2cb481f6","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":146,"box":{"x":102,"y":377,"width":788,"height":12}},{"id":"cce02e97-8269-4c9e-8778-17d6f3e76f1b","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":146,"box":{"x":69,"y":392,"width":795,"height":12}},{"id":"ce7977f9-d1a2-4069-9a1a-bb9f5b371b63","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":146,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"59b2f08c-760a-43f4-ad1f-dd28b89f7bd0","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":146,"box":{"x":70,"y":423,"width":363,"height":9}},{"id":"ee61322b-fddd-4105-ac77-8f68983a6691","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":146,"box":{"x":102,"y":445,"width":757,"height":12}},{"id":"8094c4ff-e1d1-495d-b197-fcd1f190c7aa","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":146,"box":{"x":70,"y":460,"width":826,"height":12}},{"id":"e800e719-ae3a-4db4-901c-47a0db853b8f","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":146,"box":{"x":70,"y":475,"width":822,"height":12}},{"id":"0ae941e2-ebea-4246-b4df-2bb0561bfac7","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":146,"box":{"x":69,"y":491,"width":782,"height":11}},{"id":"4ca290e5-6249-4ece-8ad0-981ddc204a25","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":146,"box":{"x":70,"y":506,"width":835,"height":11}},{"id":"2a106109-c6b1-4deb-b2da-e53972525aa2","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":146,"box":{"x":69,"y":521,"width":465,"height":11}},{"id":"2c3e6073-3da5-4584-8dd5-8da67d9c313f","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":146,"box":{"x":102,"y":543,"width":804,"height":12}},{"id":"7ad05986-fbce-448f-b4fe-cbca4b8763c0","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":146,"box":{"x":69,"y":559,"width":840,"height":11}},{"id":"7ffb6e89-ef87-4af6-8613-fa752cc1dcb4","block_type":"box","text":"provider.","page_number":146,"box":{"x":70,"y":574,"width":58,"height":11}},{"id":"8f331999-7ad0-4157-8b30-f90bfb9a2967","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":146,"box":{"x":102,"y":596,"width":778,"height":12}},{"id":"c62c19db-1a9d-4bcc-aa7c-541ea80c50fe","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":146,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"f90f45db-0bb9-4beb-9224-9d63c68f0505","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":146,"box":{"x":68,"y":627,"width":485,"height":11}},{"id":"8bc1a06a-082d-4cbd-beaa-af0284628d07","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":146,"box":{"x":102,"y":649,"width":742,"height":12}},{"id":"6a831411-2f24-4db9-b441-0f29ce438736","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":146,"box":{"x":69,"y":664,"width":517,"height":12}},{"id":"52b4c407-a70b-4bed-9047-ee5ccad512e2","block_type":"box","text":"PURCHASE OF SHARES","page_number":146,"box":{"x":395,"y":694,"width":188,"height":10}},{"id":"d42b7f7c-7f79-4511-830e-3c0e300e3fa2","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":146,"box":{"x":102,"y":717,"width":800,"height":11}},{"id":"f985bfc6-e46a-4de0-ba1e-ede16d2dba9e","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":146,"box":{"x":69,"y":732,"width":771,"height":11}},{"id":"661d4b76-3f6f-4d6c-92f8-2a2b3308025d","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":146,"box":{"x":69,"y":747,"width":822,"height":11}},{"id":"55eac228-a5e2-4bf9-8483-92ce3107a295","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":146,"box":{"x":68,"y":762,"width":809,"height":11}},{"id":"1623a4bb-f9a2-4fe6-ae60-fda1522d09c2","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":146,"box":{"x":69,"y":777,"width":781,"height":12}},{"id":"b48cdcd7-df9e-40b2-976a-05cc67ce2269","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":146,"box":{"x":68,"y":792,"width":833,"height":12}},{"id":"0384647a-5601-40ff-bc5e-42fb5d4462af","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":146,"box":{"x":68,"y":807,"width":833,"height":12}},{"id":"274597be-2fe9-4c5e-9c95-c53535d9e185","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":146,"box":{"x":69,"y":823,"width":835,"height":11}},{"id":"9671a26d-b4d1-4968-b302-96afd190d81e","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":146,"box":{"x":69,"y":838,"width":804,"height":11}},{"id":"5b023c6c-3499-47fd-b8cf-3cb00e323272","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":146,"box":{"x":70,"y":853,"width":816,"height":11}},{"id":"953dfae5-007c-457f-a297-a7dc6f6721af","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":146,"box":{"x":68,"y":867,"width":835,"height":12}},{"id":"37e6fa2e-cd97-417d-a141-59d31a8e2828","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":146,"box":{"x":69,"y":883,"width":834,"height":11}},{"id":"fa1dc2f9-5899-41d5-aab0-8ad6129e9f84","block_type":"box","text":"II-99","page_number":146,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"341aa8d9-2416-49f4-8a56-9096efd01b4d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"57155081-e2f3-449c-bfe3-4a9529a6475a","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":147,"box":{"x":69,"y":45,"width":757,"height":11}},{"id":"dcf80d3a-d5a1-4e39-9603-056a55d63293","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":147,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"990135a1-7353-4ca7-b263-d766f7eb06cb","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":147,"box":{"x":101,"y":82,"width":799,"height":12}},{"id":"d537d503-0ce1-47f0-97ce-8a9ac2a313cb","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":147,"box":{"x":68,"y":98,"width":798,"height":11}},{"id":"00c1a246-1881-4163-a368-7fcb05bb25d0","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":147,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"454fa83c-4dd6-4e0a-87a5-8dbb1b4b1fbb","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":147,"box":{"x":68,"y":128,"width":786,"height":11}},{"id":"092ecf67-5d79-4c85-abc8-0adf0291859a","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":147,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"abcc655f-89d9-4df4-ab1a-da4b811ff5cc","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":147,"box":{"x":69,"y":158,"width":795,"height":11}},{"id":"2edeedc8-6a0c-4924-be29-6f1488e708fd","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":147,"box":{"x":68,"y":173,"width":819,"height":11}},{"id":"b5c997f7-2df6-4b97-85b8-6e1442c4c16b","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":147,"box":{"x":69,"y":188,"width":808,"height":12}},{"id":"10a5a8d1-37ac-4569-bd18-2655aeef5e63","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":147,"box":{"x":69,"y":203,"width":803,"height":12}},{"id":"323bef64-cd61-4a84-a04f-c5372776132b","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":147,"box":{"x":70,"y":218,"width":812,"height":12}},{"id":"ebc6c268-2e0b-4387-b5be-932375db168e","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":147,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"c5ec5416-05f4-4d3c-a8c8-560b380281d2","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":147,"box":{"x":68,"y":249,"width":788,"height":11}},{"id":"c77784b6-4431-4af0-b1e8-e599c9d6f8da","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":147,"box":{"x":69,"y":264,"width":779,"height":11}},{"id":"814dfce8-2d7c-4878-a474-e65c388afe9d","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":147,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"27794012-6a7c-4146-a77a-ec9dc4770b93","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":147,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"9c58df42-7153-4489-886d-6afb9d0fa8c9","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":147,"box":{"x":68,"y":309,"width":762,"height":11}},{"id":"597b2feb-a735-4820-9376-c248e07f9f3a","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":147,"box":{"x":101,"y":332,"width":768,"height":11}},{"id":"72a8b9b7-0480-43d2-be09-37699c44c6bf","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":147,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"45486f31-a593-4d49-ab24-ea518910def8","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":147,"box":{"x":69,"y":361,"width":769,"height":12}},{"id":"a77be5a4-c518-43b6-8eda-69c9e6333a6c","block_type":"box","text":"investment is $25.","page_number":147,"box":{"x":70,"y":377,"width":132,"height":10}},{"id":"be643425-748e-43e5-b46d-0cceed6e9f49","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":147,"box":{"x":102,"y":400,"width":802,"height":11}},{"id":"420d5bec-6fb2-420a-9c17-6116522f29fb","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":147,"box":{"x":69,"y":415,"width":833,"height":11}},{"id":"304c124b-acf4-4783-9da2-15ac4ffb006c","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":147,"box":{"x":70,"y":430,"width":806,"height":11}},{"id":"fd97a1a9-4933-488b-a798-fc94eaa39f83","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":147,"box":{"x":70,"y":445,"width":751,"height":11}},{"id":"da7fda48-4189-4796-96c5-efc746169358","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":147,"box":{"x":69,"y":460,"width":826,"height":12}},{"id":"63849215-491b-46a3-9af9-ecd56dd01d0a","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":147,"box":{"x":102,"y":483,"width":768,"height":11}},{"id":"39ba4619-e0db-44d3-be90-5159e19d4836","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":147,"box":{"x":68,"y":498,"width":807,"height":11}},{"id":"3a27533f-f077-48d9-8f7a-98c09796f603","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":147,"box":{"x":69,"y":513,"width":836,"height":12}},{"id":"a2668989-11fa-4d39-a683-ee0890d7c251","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":147,"box":{"x":69,"y":528,"width":814,"height":12}},{"id":"174d961e-dd2a-4bf3-9f9b-9f268a4c5889","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":147,"box":{"x":68,"y":543,"width":740,"height":12}},{"id":"579aff9b-8083-4cf8-9bc1-8a00623cc499","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":147,"box":{"x":102,"y":566,"width":795,"height":11}},{"id":"6903c540-103f-4a0f-b9ea-bb1b1cdb4f72","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":147,"box":{"x":70,"y":581,"width":813,"height":12}},{"id":"6f3cb485-5a1b-4aa4-a167-0229e0e129b7","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":147,"box":{"x":68,"y":597,"width":827,"height":11}},{"id":"3ce7e4d2-77bc-4e44-91c8-1b0dd673f628","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":147,"box":{"x":68,"y":612,"width":750,"height":11}},{"id":"3872e798-deb7-4dde-ae25-fe664ec293bf","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":147,"box":{"x":101,"y":634,"width":776,"height":12}},{"id":"981f6a71-87e6-4818-8318-6afd270c2941","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":147,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"936458fb-69f5-459b-a43e-f134429f3838","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":147,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"3c3be763-2856-4bc6-872b-8dc2e0ca25ce","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":147,"box":{"x":69,"y":680,"width":802,"height":11}},{"id":"2eb0d01d-1f22-42ad-b6b8-0f90640a4810","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":147,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"352de5aa-0ef7-472c-ae5b-27ad2f7e4dc5","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":147,"box":{"x":69,"y":710,"width":819,"height":11}},{"id":"019bffe5-e421-4221-a26c-010f06668233","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":147,"box":{"x":68,"y":725,"width":827,"height":11}},{"id":"d5089651-4b67-4858-8301-284ed2d6cfc5","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":147,"box":{"x":68,"y":740,"width":803,"height":11}},{"id":"43bea105-347f-4c0a-b702-a6cb8e9e8cca","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":147,"box":{"x":70,"y":755,"width":788,"height":11}},{"id":"f357e654-41d0-4630-9db3-31b5e13768ea","block_type":"box","text":"adviser.","page_number":147,"box":{"x":69,"y":771,"width":53,"height":8}},{"id":"06a836d9-bc95-4edd-b3b6-3128f70b343c","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":147,"box":{"x":101,"y":793,"width":795,"height":11}},{"id":"132734cd-6d0b-49a0-b55a-dae29fe10377","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":147,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"458c6d97-2c7d-493b-81c7-1cdaff869618","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":147,"box":{"x":69,"y":823,"width":803,"height":12}},{"id":"567a455b-efeb-48ec-8114-f447831f3bea","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":147,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"3d97c44e-f050-4401-9bfc-edb640c52deb","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":147,"box":{"x":68,"y":854,"width":747,"height":11}},{"id":"202607b2-1873-485f-82f4-b4354d9f96f9","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":147,"box":{"x":70,"y":869,"width":809,"height":11}},{"id":"c069616b-0505-456e-9058-0cbfdae60ef1","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":147,"box":{"x":69,"y":884,"width":819,"height":11}},{"id":"be80b707-9223-4284-ac22-71d3ab003cce","block_type":"box","text":"II-100","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"00f33134-2097-475c-bd2f-a33d332d3ed4","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"601c2f94-0d6d-4a92-b569-4c38d25c8d17","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":148,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"8038c191-56c8-4967-bb5f-83fcc920aced","block_type":"box","text":"also be restricted from making additional investments.","page_number":148,"box":{"x":69,"y":60,"width":388,"height":11}},{"id":"1e172a47-578f-4703-9253-f2000bbaa9d7","block_type":"box","text":"In-Kind Purchases","page_number":148,"box":{"x":102,"y":83,"width":127,"height":8}},{"id":"544f2121-f40d-42b5-847e-aee67139dad4","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":148,"box":{"x":230,"y":82,"width":649,"height":12}},{"id":"76459610-6b26-47a3-9aef-9a97e28f01e3","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":148,"box":{"x":69,"y":98,"width":779,"height":11}},{"id":"57324704-3436-4f63-bd6d-12b63061aa49","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":148,"box":{"x":70,"y":113,"width":820,"height":11}},{"id":"64411fd3-6553-42c5-adb2-eda1fc676fbe","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":148,"box":{"x":69,"y":128,"width":827,"height":11}},{"id":"419e56f0-330b-4f65-ac4d-943da9bc9cbc","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":148,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"8086301b-2954-42d1-b044-d88754430793","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":148,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"b8a5d2f6-49eb-4fb3-bf1b-ec71bd72a3b4","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":148,"box":{"x":68,"y":173,"width":837,"height":11}},{"id":"f7a7c940-07f4-4d06-8405-d702065c4aad","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":148,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"0b3ab93d-a902-46f6-9e05-ee7ce64a8096","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":148,"box":{"x":69,"y":203,"width":795,"height":12}},{"id":"514d3741-f88d-4454-99c4-63de16d7ec44","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":148,"box":{"x":69,"y":218,"width":833,"height":12}},{"id":"fdb36bdf-bd21-4c10-8580-e7122c0dd0b7","block_type":"box","text":"has settled.","page_number":148,"box":{"x":69,"y":234,"width":83,"height":9}},{"id":"a7731d9f-1e29-443b-923e-111f98071fee","block_type":"box","text":"Institutional Shares","page_number":148,"box":{"x":69,"y":264,"width":142,"height":9}},{"id":"4eda8488-5e72-403b-af1e-cce45700ed7e","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":148,"box":{"x":102,"y":287,"width":759,"height":11}},{"id":"fff5e77a-447e-42ee-bb5c-98527245260f","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":148,"box":{"x":70,"y":302,"width":756,"height":11}},{"id":"ea6a659e-f8bf-4118-85c0-a517cf993d48","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":148,"box":{"x":70,"y":317,"width":775,"height":11}},{"id":"d408bfcd-5440-4f2d-b26d-d9fc9c71d48d","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":148,"box":{"x":70,"y":332,"width":839,"height":11}},{"id":"e7a28176-cf31-4242-a04a-4e14c076c6f5","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":148,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"b02c06ba-e2f5-4035-83ef-1ef7f7478e39","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":148,"box":{"x":69,"y":362,"width":276,"height":11}},{"id":"497677b9-a116-451f-abb2-2d177c966202","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":148,"box":{"x":102,"y":385,"width":259,"height":11}},{"id":"71c12dba-751b-4527-8106-1f66102a95f7","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":148,"box":{"x":369,"y":385,"width":540,"height":11}},{"id":"32825379-be3e-49cf-b61b-140615485591","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":148,"box":{"x":69,"y":400,"width":826,"height":11}},{"id":"04cfa49e-7a25-4fbc-a1a1-8ca7eb4ad80e","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":148,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"1692b48b-4c87-449d-998f-95b0ed074467","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":148,"box":{"x":69,"y":430,"width":819,"height":11}},{"id":"8684d3e9-def8-4c0d-8e2e-21e6b6bc627e","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":148,"box":{"x":69,"y":445,"width":840,"height":12}},{"id":"14e8d94f-f155-4020-a07c-929b7af2c82d","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":148,"box":{"x":69,"y":460,"width":833,"height":12}},{"id":"032ac45e-7fa7-4a68-a655-01e5eae0cd53","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":148,"box":{"x":69,"y":475,"width":802,"height":12}},{"id":"0bedc959-dd20-4809-9369-7df77d10e9d7","block_type":"box","text":"these fees and conditions.","page_number":148,"box":{"x":68,"y":491,"width":189,"height":9}},{"id":"98aebb31-a4b6-45ad-a58e-189cc1351c70","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":148,"box":{"x":102,"y":513,"width":805,"height":11}},{"id":"b9b3f9dd-5b90-42e7-9a4a-79ad2c89bbd1","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":148,"box":{"x":69,"y":528,"width":825,"height":12}},{"id":"a60d6a2a-8d2b-48bf-a8aa-9f1cc66488ff","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":148,"box":{"x":69,"y":543,"width":817,"height":12}},{"id":"f5d9876c-ad8f-46e6-9323-4c32909deebb","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":148,"box":{"x":70,"y":559,"width":831,"height":11}},{"id":"60d5c7c7-90da-48bf-97fc-a9b930828581","block_type":"box","text":"incurred by the Fund.","page_number":148,"box":{"x":70,"y":574,"width":147,"height":11}},{"id":"ae1277a1-cd0e-4498-8ff7-fe121776b56a","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":148,"box":{"x":102,"y":596,"width":774,"height":11}},{"id":"35ab275d-bfbc-4eaf-b96a-ad6fa5b0b25b","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":148,"box":{"x":68,"y":612,"width":834,"height":11}},{"id":"a6d7090d-5982-4324-a4d3-12e1c021d3a5","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":148,"box":{"x":70,"y":627,"width":773,"height":11}},{"id":"fd5bde5f-12ed-4369-8403-317b22eb9135","block_type":"box","text":"immediate family members of such persons; individuals and “Institutional Investors” with a minimum initial","page_number":148,"box":{"x":70,"y":642,"width":762,"height":11}},{"id":"8ed813cd-2fe7-4b06-8ecc-b5e4fb0df47d","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":148,"box":{"x":70,"y":656,"width":821,"height":12}},{"id":"9ddb9e0b-59b5-42a5-8db5-31b913d89700","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":148,"box":{"x":69,"y":672,"width":819,"height":11}},{"id":"67acf18a-b359-457a-b3fb-c9f5a9787ce1","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":148,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"11f5e76f-7361-42cc-904c-71aba22b6620","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":148,"box":{"x":69,"y":702,"width":837,"height":11}},{"id":"587b330a-9ba0-4430-b0bc-5d4960d24c1b","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":148,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"49f98f74-7819-4aa6-a8af-201c25fb1f13","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":148,"box":{"x":69,"y":732,"width":815,"height":11}},{"id":"27b3fa33-414e-473f-ad84-70d8aebf0ba7","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":148,"box":{"x":69,"y":748,"width":789,"height":11}},{"id":"2fdd2406-67f4-4b45-b1c2-00d870e6453f","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":148,"box":{"x":70,"y":763,"width":772,"height":11}},{"id":"0c6158ea-69e3-48d3-8deb-911d0eba2447","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":148,"box":{"x":69,"y":778,"width":822,"height":11}},{"id":"0dbfcd85-ddc4-4df8-a6d2-c8ee692bd726","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":148,"box":{"x":68,"y":793,"width":783,"height":11}},{"id":"369482c6-a915-4840-8c07-aea1a44d059e","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":148,"box":{"x":69,"y":808,"width":785,"height":11}},{"id":"810122da-ad0f-4b53-8730-f9c5616eb1e6","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":148,"box":{"x":69,"y":823,"width":838,"height":12}},{"id":"6188ae5e-3f57-47ad-8b0f-5ae652f30994","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":148,"box":{"x":69,"y":838,"width":831,"height":12}},{"id":"21152268-2624-4ace-bd70-84fa42eb8cd5","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":148,"box":{"x":69,"y":853,"width":751,"height":12}},{"id":"a6253bcb-2c3a-43c1-b01e-198d2bd00643","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":148,"box":{"x":69,"y":868,"width":817,"height":12}},{"id":"2dcd7ac7-0055-4c61-be0f-f6e1e8c52726","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":148,"box":{"x":69,"y":884,"width":773,"height":11}},{"id":"047b60ce-2a56-4391-8b04-5d103c190602","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":148,"box":{"x":69,"y":899,"width":771,"height":11}},{"id":"171e35eb-9655-46ff-b752-4148eca70f59","block_type":"box","text":"II-101","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3ec327ac-068d-431a-a36d-2dfddb6a16b9","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4526d6f0-c3a0-4ca1-87b3-eb59f052cc30","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":149,"box":{"x":69,"y":44,"width":822,"height":12}},{"id":"5fe5dfad-136b-4921-9031-d76795160f54","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":149,"box":{"x":68,"y":60,"width":771,"height":11}},{"id":"60c8e085-b745-4eb4-aa35-e0bba254a4fb","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":149,"box":{"x":70,"y":74,"width":801,"height":12}},{"id":"02d4abc7-ae18-43a0-bf2c-737030987134","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":149,"box":{"x":69,"y":90,"width":770,"height":11}},{"id":"bb6d10fd-bf1e-4f8c-8e20-da45e07b0fc5","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":149,"box":{"x":102,"y":113,"width":280,"height":11}},{"id":"a1e350a6-11f6-4093-b2d2-4230bb042d23","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":149,"box":{"x":389,"y":113,"width":496,"height":11}},{"id":"98594b7c-4952-4438-a7b6-ec975d685d1f","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":149,"box":{"x":70,"y":128,"width":812,"height":11}},{"id":"8dd4b3b4-c7a7-4ba1-9ea6-a4a9ae52debf","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":149,"box":{"x":70,"y":143,"width":828,"height":11}},{"id":"cd7c536a-904a-444a-93ff-c427d579e30e","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":149,"box":{"x":70,"y":158,"width":838,"height":11}},{"id":"a84c5078-67fa-4fea-91b8-1e256c5e3f86","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":149,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"2b51b8d7-6659-4066-bca8-894188349e47","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":149,"box":{"x":69,"y":188,"width":279,"height":11}},{"id":"1727a104-36c3-4e44-8584-4a3516eaad43","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":149,"box":{"x":69,"y":219,"width":382,"height":11}},{"id":"b806389c-e895-4fe3-902f-78e9fb787a53","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":149,"box":{"x":102,"y":241,"width":770,"height":11}},{"id":"032045ab-4d6d-4599-87fd-c258c1428279","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":149,"box":{"x":69,"y":256,"width":837,"height":12}},{"id":"89e68103-6d03-4938-a0cf-af337a1e0eba","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":149,"box":{"x":69,"y":272,"width":819,"height":11}},{"id":"541c3e55-727c-4482-b939-a949dbad460d","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":149,"box":{"x":68,"y":286,"width":840,"height":12}},{"id":"a1c82d87-057e-4d44-b2e4-360cd8dcf137","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":149,"box":{"x":69,"y":302,"width":815,"height":11}},{"id":"9d93b1ff-57db-49de-8796-88c20277e6bf","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":149,"box":{"x":69,"y":317,"width":791,"height":11}},{"id":"31df4ef8-9896-4bbe-b0d9-ca2e074b4c55","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":149,"box":{"x":70,"y":332,"width":727,"height":11}},{"id":"31a8caa1-5a9f-4b11-8809-e3cbd343c093","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":149,"box":{"x":102,"y":355,"width":770,"height":11}},{"id":"c7edcbf4-7c25-42f3-83e1-dabe1befe655","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":149,"box":{"x":70,"y":370,"width":812,"height":11}},{"id":"7aec0641-9791-4d7c-93b7-4b777d87a8be","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":149,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"805a0183-c089-47e2-b7c8-53d2f2aad299","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":149,"box":{"x":69,"y":400,"width":826,"height":11}},{"id":"d694a2b5-101a-41a9-b80e-31ff4aa0839c","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":149,"box":{"x":68,"y":415,"width":808,"height":11}},{"id":"cfdbb611-e8f1-4bad-822f-9b04c2e21bae","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":149,"box":{"x":69,"y":430,"width":834,"height":11}},{"id":"310a66f4-4b4d-4f66-8046-bdf6193438a3","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":149,"box":{"x":69,"y":445,"width":798,"height":12}},{"id":"c9c0af20-49f2-4cc3-84ce-53df69d2a89a","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":149,"box":{"x":70,"y":460,"width":789,"height":12}},{"id":"ae7a63ee-1c27-4201-acad-3743a95100dd","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":149,"box":{"x":70,"y":475,"width":805,"height":12}},{"id":"137c123d-35ec-41c5-b76d-9aaed24a81d7","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":149,"box":{"x":70,"y":491,"width":792,"height":11}},{"id":"95338e41-e139-4a9a-aa2d-32bd68461367","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":149,"box":{"x":69,"y":506,"width":826,"height":11}},{"id":"7e23ed9b-d3e9-4fc2-99e1-cbadaa9c2ce4","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":149,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"1368bcde-4087-47e0-a2cd-7119103fcf75","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":149,"box":{"x":69,"y":536,"width":834,"height":11}},{"id":"e24e799e-ee2b-4fbf-a863-f63fa0a2c840","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":149,"box":{"x":69,"y":551,"width":358,"height":9}},{"id":"a8fa92d8-7976-48c3-bd67-f0770311fe3b","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":149,"box":{"x":102,"y":574,"width":734,"height":11}},{"id":"423dfd5d-3337-4dce-8f00-170902fb1977","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":149,"box":{"x":70,"y":589,"width":785,"height":11}},{"id":"163393ba-7e55-42b2-8571-423a15f4d34f","block_type":"box","text":"periods indicated.","page_number":149,"box":{"x":70,"y":604,"width":124,"height":11}},{"id":"ebdfd8ea-16a0-4b47-b959-8a6999c21ac5","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":149,"box":{"x":101,"y":627,"width":806,"height":11}},{"id":"102b15e1-609a-40ab-bc55-a4a6a7bd9e99","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":149,"box":{"x":68,"y":642,"width":830,"height":11}},{"id":"04c309d7-6777-4be0-a85a-a47968b9c47e","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":149,"box":{"x":69,"y":657,"width":832,"height":11}},{"id":"d70d05a3-33e8-4c94-ba15-3a911de9bcc8","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":149,"box":{"x":69,"y":672,"width":714,"height":11}},{"id":"d3931b55-25c2-4ba0-97d9-57476a96d2c0","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":149,"box":{"x":69,"y":702,"width":297,"height":11}},{"id":"a1bb0a04-ec5f-4160-ac48-6ba3ba1cf2e6","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":149,"box":{"x":102,"y":725,"width":761,"height":11}},{"id":"f8fc7499-5b12-4bf4-a8fc-ddca634871a4","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":149,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"7444f1c2-8733-432c-bf01-09916856924e","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":149,"box":{"x":69,"y":755,"width":812,"height":11}},{"id":"061db794-4b2b-4d56-8548-1db366960944","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":149,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"523ba66e-6e83-45e5-8258-4ebc38432566","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":149,"box":{"x":69,"y":785,"width":578,"height":9}},{"id":"4b3f9d91-aa78-4c24-985f-5f10cf2ec23f","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":149,"box":{"x":102,"y":808,"width":734,"height":11}},{"id":"56bf671c-c8dc-45bc-abb5-4f0d7289db51","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":149,"box":{"x":70,"y":823,"width":800,"height":11}},{"id":"cdd1117c-5d95-4a88-ada9-36baa5e6e7bf","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":149,"box":{"x":101,"y":846,"width":806,"height":11}},{"id":"84e55629-d947-4ec8-8120-baebf034d0b7","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":149,"box":{"x":68,"y":861,"width":830,"height":11}},{"id":"cbbd28cd-4c5c-49da-acad-cdc122c701f6","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":149,"box":{"x":69,"y":876,"width":832,"height":11}},{"id":"38591171-ebe2-4193-8576-4b007957d896","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":149,"box":{"x":69,"y":891,"width":714,"height":12}},{"id":"fb934d99-5b88-4905-8470-81fa15a72c6c","block_type":"box","text":"II-102","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ce1f90d2-88bb-4d73-90ac-4754bfa85c41","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d93a46b9-0a07-431f-b1ea-1009130b29ff","block_type":"box","text":"Reduced Initial Sales Charges","page_number":150,"box":{"x":69,"y":45,"width":219,"height":11}},{"id":"67c8b902-9fa6-48e2-bc49-4977b1c10ddc","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":150,"box":{"x":102,"y":67,"width":782,"height":12}},{"id":"274d9576-0cce-4c41-bb8d-a76cc994bc4f","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":150,"box":{"x":69,"y":82,"width":827,"height":12}},{"id":"161cb9d7-03b0-4607-9f0f-c5cd555865dc","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":150,"box":{"x":68,"y":98,"width":809,"height":11}},{"id":"fd9deb5c-7c05-4306-80ac-2dbcccdf2e87","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":150,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"990e9f19-bd90-41a9-adfd-36b64f9b0e90","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":150,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"4854e70e-f172-4ef6-af45-c6b61e0985b1","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":150,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"8a138b03-d21e-4338-9c7d-a1d6bf1ecab2","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":150,"box":{"x":69,"y":158,"width":793,"height":11}},{"id":"e9286835-f282-4bb5-bf19-53fd1678929c","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":150,"box":{"x":70,"y":173,"width":603,"height":11}},{"id":"412be0ce-9fcd-4a95-b4de-2b251af839db","block_type":"box","text":"Reinvested Dividends.","page_number":150,"box":{"x":102,"y":196,"width":160,"height":9}},{"id":"45a85000-0a0a-42d5-8d5a-2bcff39036b2","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":150,"box":{"x":268,"y":196,"width":566,"height":11}},{"id":"01ca6674-b277-4f1f-b582-2529214c9897","block_type":"box","text":"reinvestment of dividends.","page_number":150,"box":{"x":69,"y":211,"width":186,"height":9}},{"id":"7563b52e-2832-44a7-8d7e-cdad3480638a","block_type":"box","text":"Right of Accumulation.","page_number":150,"box":{"x":102,"y":234,"width":166,"height":11}},{"id":"ce96a4e2-59d6-4556-bc72-6c07a22ad0af","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":150,"box":{"x":275,"y":234,"width":574,"height":11}},{"id":"917051fa-2173-4cc2-bb5b-7a0a156687df","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":150,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"cad73d68-f01e-481e-80cf-034a74c482f6","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":150,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"9480bd47-bedb-4588-9657-d949baadbd89","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":150,"box":{"x":70,"y":279,"width":825,"height":11}},{"id":"985b55ce-11b9-4d0f-a471-d2e581896b47","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":150,"box":{"x":69,"y":294,"width":780,"height":11}},{"id":"a6d7c9ad-654d-45f6-8c1a-3873c166ccdb","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":150,"box":{"x":70,"y":309,"width":828,"height":11}},{"id":"dadbc28a-55f2-47c7-a6c7-3797ee96a89f","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":150,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"6e9ef192-a88d-427a-a394-30c75fbf927a","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":150,"box":{"x":70,"y":339,"width":794,"height":12}},{"id":"f2b82ecb-f8f7-4592-8e51-bb1dc47b9528","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":150,"box":{"x":70,"y":355,"width":814,"height":11}},{"id":"8eb2f04a-1fd8-461b-b1b6-fbefd2f280f9","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":150,"box":{"x":70,"y":370,"width":828,"height":11}},{"id":"c48b9427-1c06-4a8d-8b13-773b5ae924bb","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":150,"box":{"x":69,"y":385,"width":838,"height":11}},{"id":"640be9b1-f809-416f-948e-e78e07ccfb94","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":150,"box":{"x":70,"y":400,"width":776,"height":11}},{"id":"7e7f2387-2614-4eff-b788-30c15acec1d6","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":150,"box":{"x":68,"y":415,"width":835,"height":11}},{"id":"15cfd76b-3bd4-4229-a896-1063816de5e1","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":150,"box":{"x":69,"y":430,"width":839,"height":11}},{"id":"41c67206-5c17-4660-a19e-59d047628ea8","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":150,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"8f4fc742-6eb1-4a15-8ecd-70768eceef6e","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":150,"box":{"x":70,"y":460,"width":774,"height":12}},{"id":"ed47320a-d6a0-478c-afd0-abfe9a83e22c","block_type":"box","text":"Letter of Intent.","page_number":150,"box":{"x":102,"y":483,"width":114,"height":9}},{"id":"0acf8406-191e-4628-ada1-8531d060fc51","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":150,"box":{"x":222,"y":483,"width":680,"height":11}},{"id":"257e1c9b-c1db-4303-9dce-3fdcfd99e94c","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":150,"box":{"x":70,"y":498,"width":820,"height":11}},{"id":"de4363ca-8274-4f32-8d0b-d96a88997cae","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":150,"box":{"x":68,"y":513,"width":792,"height":12}},{"id":"336a3fd9-c66e-42a3-b98e-250b015289cd","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":150,"box":{"x":70,"y":529,"width":802,"height":10}},{"id":"f0e0c2e0-64de-4971-b14f-376e63c5c3e9","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":150,"box":{"x":69,"y":544,"width":760,"height":11}},{"id":"0c87215b-052d-40f9-8246-468bd303056f","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":150,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"5e393245-f380-4aee-bbf1-40f9bec42e14","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":150,"box":{"x":70,"y":574,"width":826,"height":11}},{"id":"71965d69-afeb-4922-b6df-aafa63cc509b","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":150,"box":{"x":69,"y":589,"width":822,"height":11}},{"id":"d27b22b0-5068-4d6f-b21c-c5c62a2befa9","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":150,"box":{"x":70,"y":604,"width":764,"height":11}},{"id":"4cfb18ec-ab89-47ac-9b27-42a3a9d5b921","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":150,"box":{"x":70,"y":619,"width":800,"height":11}},{"id":"bc899d39-8fe0-4800-bdc6-2e2acbccbe54","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":150,"box":{"x":69,"y":634,"width":838,"height":12}},{"id":"0fa775b9-bdfa-4667-a96b-aff796ba5e0f","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":150,"box":{"x":68,"y":649,"width":835,"height":12}},{"id":"a59fe4fc-6382-43a0-aee5-f2ec131d5550","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":150,"box":{"x":70,"y":665,"width":811,"height":11}},{"id":"f104b091-13c5-443f-a91d-3558ef90444b","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":150,"box":{"x":69,"y":680,"width":814,"height":11}},{"id":"d2338817-f068-4336-ba98-a95102690170","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":150,"box":{"x":68,"y":695,"width":827,"height":11}},{"id":"6ca6ff97-8601-4a96-aa06-28ea8541ae72","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":150,"box":{"x":69,"y":710,"width":827,"height":11}},{"id":"e0827d36-d7e6-4926-9fb3-4487b7c9209a","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":150,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"80d32c8c-1fe2-4ef7-b131-30df1893c2fa","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":150,"box":{"x":70,"y":740,"width":807,"height":11}},{"id":"144ebdd1-7d5a-4822-9fd6-83c41b762c04","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":150,"box":{"x":69,"y":755,"width":423,"height":11}},{"id":"e2a9eb40-c347-42dc-a253-60a53ac180cf","block_type":"box","text":"Placement Fees.","page_number":150,"box":{"x":102,"y":778,"width":120,"height":9}},{"id":"819d1df0-f0e6-404c-b1c1-84d5c1567e4f","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":150,"box":{"x":102,"y":801,"width":777,"height":11}},{"id":"eeaca670-93c6-4df5-b598-2e86ca975d25","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":150,"box":{"x":68,"y":816,"width":704,"height":11}},{"id":"34d1a2f1-9142-4621-bddd-445b1d1b24eb","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":150,"box":{"x":102,"y":838,"width":741,"height":12}},{"id":"55d721fb-99e7-49b8-b5d4-d38e4f37dab0","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":865,"width":361,"height":11}},{"id":"00fa1481-3cf0-4e3e-8df4-f3d8e7169ad9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":150,"box":{"x":535,"y":866,"width":288,"height":9}},{"id":"5d87bcc7-ea67-46ad-bf6a-8ddc8fc68850","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":881,"width":361,"height":10}},{"id":"f628e0a5-4300-42a9-96ad-cc23a032921c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":150,"box":{"x":535,"y":881,"width":288,"height":9}},{"id":"5cb659ac-2b35-45e7-a70c-a16a8e792a8b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":896,"width":345,"height":10}},{"id":"4881909a-365f-4b2e-a4d5-b4ec52ad7299","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":150,"box":{"x":518,"y":896,"width":305,"height":9}},{"id":"258a88a8-d4b6-405f-bd8f-5f6ebc3da6e6","block_type":"box","text":"II-103","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aed29a5f-4bc8-4db8-815a-6c5c0d28a5a9","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c5d1679d-412b-493e-8286-850c504c1999","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":151,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"819c122d-b0f0-43d3-8cf4-1cdd1712bdf6","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":151,"box":{"x":69,"y":60,"width":774,"height":11}},{"id":"fb902155-814d-4fb2-b2b6-7f04c0bc9e60","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":151,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"168956eb-6af4-4c3f-8d8c-f24b40048969","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":151,"box":{"x":69,"y":90,"width":695,"height":11}},{"id":"37820c38-8471-40a8-bbcf-c7b1de997038","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":117,"width":410,"height":11}},{"id":"70375b7a-3d7c-4f73-9aaf-0ea46272f13f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":151,"box":{"x":583,"y":118,"width":240,"height":9}},{"id":"605e65fe-c965-484e-8c99-57a4a8fadd5e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":132,"width":361,"height":11}},{"id":"a9eab9cc-6d11-41aa-9e51-069c41df076e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":535,"y":133,"width":288,"height":9}},{"id":"cb489b46-c7df-4903-b366-9646b3f3aa2e","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":147,"width":345,"height":11}},{"id":"53a1289b-a92d-4bed-873a-24661175da98","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":518,"y":148,"width":305,"height":9}},{"id":"1f3d702e-ea19-4758-8174-04292d2fc39a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":151,"box":{"x":101,"y":172,"width":806,"height":11}},{"id":"062571ec-6c01-4aa4-a7c7-fa0e95c0ff8e","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":151,"box":{"x":68,"y":187,"width":821,"height":11}},{"id":"83716f0c-d197-4d94-8fab-7aed25dd0be3","block_type":"box","text":"SM","page_number":151,"box":{"x":890,"y":187,"width":11,"height":5}},{"id":"43775f71-4d11-4066-a4d7-b735d3ed970c","block_type":"box","text":",","page_number":151,"box":{"x":903,"y":194,"width":2,"height":3}},{"id":"7acfd8d4-bf40-4daf-8a91-8450d98de511","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":151,"box":{"x":70,"y":202,"width":816,"height":11}},{"id":"aafa865d-6010-4ef6-94bf-556f8819044f","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":151,"box":{"x":70,"y":217,"width":835,"height":12}},{"id":"3f49b4d5-3612-4113-8ba6-9116821ec6ed","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":151,"box":{"x":70,"y":232,"width":520,"height":12}},{"id":"4c8a14e2-4539-43be-a4f4-e5389f547934","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":259,"width":361,"height":11}},{"id":"aa03c376-c0ac-424f-8459-858ecad34a88","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":151,"box":{"x":535,"y":260,"width":288,"height":9}},{"id":"95798f73-7d0b-4af2-a56c-a9d71ce4e540","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":275,"width":361,"height":10}},{"id":"6c7723a8-0140-4d43-ad0b-5aed7618eef6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":535,"y":275,"width":288,"height":9}},{"id":"9ca140aa-7cd6-4387-aa95-3bc23b6bcb33","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":290,"width":345,"height":10}},{"id":"cc872004-8207-4f08-9af9-779a5a9b8a34","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":518,"y":290,"width":305,"height":9}},{"id":"89b3b97d-facf-491c-bea7-d95771c63087","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":151,"box":{"x":101,"y":314,"width":743,"height":12}},{"id":"2f03849b-f153-4ccd-802a-7bf42fa2869d","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":151,"box":{"x":70,"y":329,"width":674,"height":12}},{"id":"7e1b8998-e6db-4cf5-979f-9d96b4952f5f","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"5c853514-8996-447f-9630-e140301d89f1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"91af75d1-9251-4b3f-ac54-3fc623a123e2","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":372,"width":361,"height":10}},{"id":"434dd77a-34ca-4eda-9dae-1813bce81d57","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":535,"y":372,"width":288,"height":9}},{"id":"9495fb65-b1bd-4944-a98e-3dcd6d942061","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":387,"width":345,"height":10}},{"id":"ddcf7849-f8cd-4bab-9de1-f15bdfcdc4c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":151,"box":{"x":518,"y":387,"width":305,"height":9}},{"id":"4a8075a2-37ab-4c8b-8dd9-ed2ff631103f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":151,"box":{"x":101,"y":411,"width":808,"height":12}},{"id":"50b9db5c-8a12-45aa-af53-6e86b312117d","block_type":"box","text":"may be up to the following amounts:","page_number":151,"box":{"x":69,"y":426,"width":257,"height":12}},{"id":"500aa4b3-6906-4447-b816-6d73a377f54a","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":453,"width":410,"height":12}},{"id":"b09b5499-fd0c-4986-b1cd-0d1d61750fa0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":583,"y":454,"width":240,"height":9}},{"id":"32c80cd9-4ca2-4251-ab23-2aa906159ad5","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":469,"width":361,"height":10}},{"id":"fb6cb773-9aaf-412d-9ba3-e9f3c905faf2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":535,"y":469,"width":288,"height":9}},{"id":"e201d07a-92df-41b1-b97c-4e8019fe9472","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":484,"width":345,"height":10}},{"id":"90767122-b4de-468d-968d-4d944b5f62a0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":151,"box":{"x":518,"y":484,"width":305,"height":9}},{"id":"4723a6cb-0bc5-41aa-a41b-bcf33d15c1c4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":151,"box":{"x":101,"y":508,"width":768,"height":11}},{"id":"c3ebccc7-3aba-412f-aefb-a61c6728f7ba","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":151,"box":{"x":70,"y":523,"width":371,"height":12}},{"id":"9a487d37-14ce-4341-aa3b-25925dd785b5","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"0af934ed-44d4-46b8-94e6-461e33f460be","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":151,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"858b6b73-75f0-4d26-894a-74c822936af7","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":566,"width":361,"height":10}},{"id":"4881ad35-2f59-48c6-a131-d83bd96fbef8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":151,"box":{"x":535,"y":566,"width":288,"height":9}},{"id":"03a4889e-420d-4a9d-a8e5-387938b5c26a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":581,"width":345,"height":10}},{"id":"46435cd9-53e2-4e86-a498-ba891e966371","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":151,"box":{"x":518,"y":581,"width":305,"height":9}},{"id":"6d4d747f-9fef-43bb-8728-f11e51da5af7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":151,"box":{"x":101,"y":605,"width":778,"height":12}},{"id":"e316a95c-df02-4eda-98c9-665a89dac799","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":151,"box":{"x":69,"y":620,"width":830,"height":12}},{"id":"89712e21-35f0-41dd-ac59-72179e343887","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":151,"box":{"x":70,"y":635,"width":371,"height":12}},{"id":"d9c5958b-6939-410d-ba20-83ef792f92e4","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":663,"width":410,"height":11}},{"id":"27a84ae7-f490-4c84-be9d-7b8495accfb6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":151,"box":{"x":583,"y":663,"width":240,"height":9}},{"id":"95f3ebd7-cb8f-426c-8b01-957acd95dc67","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":678,"width":361,"height":10}},{"id":"129ceddf-2d32-4a55-a9ef-184c111932e1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":535,"y":678,"width":288,"height":9}},{"id":"eb895e90-f7d3-4b36-9e4d-20c4ba4449b2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":693,"width":345,"height":10}},{"id":"2a982005-b43a-4f5b-9932-62f69432f2f7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":518,"y":694,"width":305,"height":8}},{"id":"363b5470-39b3-44c6-a4e8-4b6547e81b70","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":151,"box":{"x":101,"y":717,"width":779,"height":11}},{"id":"3beaba09-6136-41fd-bf66-2a77387f950e","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":151,"box":{"x":70,"y":732,"width":780,"height":12}},{"id":"b0f17cd7-9c39-4024-9b94-9d5c2a569af6","block_type":"box","text":"$250,000 and above . . . .","page_number":151,"box":{"x":167,"y":760,"width":182,"height":11}},{"id":"8d08eb96-2d35-4412-b37b-201b16f82d08","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":355,"y":760,"width":468,"height":9}},{"id":"7d023e04-dcd9-4894-8611-fc2438186d71","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":151,"box":{"x":101,"y":784,"width":779,"height":11}},{"id":"0bf433cc-3aa1-46ed-9c74-999c9d5e9326","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":151,"box":{"x":70,"y":799,"width":819,"height":11}},{"id":"d1f5989d-a471-44bb-835c-9bf538de836b","block_type":"box","text":"the following amounts:","page_number":151,"box":{"x":68,"y":814,"width":161,"height":12}},{"id":"afee9b3b-eb84-4ee2-9354-190d51d4898e","block_type":"box","text":"$100,000 and above . . . .","page_number":151,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"0c21b753-df31-47e6-afb8-1c38c7eb9548","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"982b49a4-8fc8-40d2-b726-ef9d90df6d40","block_type":"box","text":"II-104","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"41ee8311-4a8b-4f0c-8bfc-0fa92160e9d5","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0fa2b606-5a79-466d-88ce-8d64c6bfb436","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":152,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"05d5901c-c2e9-4341-be73-24b835b31d06","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":152,"box":{"x":70,"y":60,"width":775,"height":11}},{"id":"f6158ff5-d959-459f-8a47-b7217d6b3240","block_type":"box","text":"$250,000 and above . . . .","page_number":152,"box":{"x":167,"y":87,"width":182,"height":11}},{"id":"5884e71a-83cb-4033-bb96-8fa2e1c18e94","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":152,"box":{"x":355,"y":88,"width":468,"height":8}},{"id":"3a3f6deb-b51f-48cc-94c7-ebc361ebf759","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":152,"box":{"x":101,"y":111,"width":788,"height":12}},{"id":"4fdeec65-7cbe-44ab-8963-f17caa0ac48d","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":152,"box":{"x":69,"y":126,"width":792,"height":11}},{"id":"b13f27bd-5503-43a2-8e12-11096dfa1f29","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":152,"box":{"x":70,"y":142,"width":787,"height":11}},{"id":"b7375c65-43d4-4b34-be4f-8e4109036530","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":152,"box":{"x":69,"y":157,"width":834,"height":11}},{"id":"e18895bc-3d85-4c37-8f3a-a717d98193fa","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":152,"box":{"x":70,"y":172,"width":729,"height":11}},{"id":"aeb73165-3bff-41fc-9545-f60cbfe1b5cb","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":152,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"9c4f250e-0fe1-4d13-9a98-470f9fd9175e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":152,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"4e9bf999-0b21-45ae-b4cf-2df27f61d507","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":152,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"a6f5b5e3-5497-4bc9-a6cd-63b2aa4450bc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":152,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"a1899068-5bd3-417b-a58c-fbb25aad200a","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":152,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"22084841-9820-4784-bed8-62eb581cbe9e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":152,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"34e42482-b8f8-42f0-bab4-23aa46a70731","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":152,"box":{"x":101,"y":254,"width":801,"height":11}},{"id":"81397f70-b587-48e5-a873-0c8722622e6c","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":152,"box":{"x":69,"y":269,"width":769,"height":11}},{"id":"d58afeaf-57c3-4f65-b5b8-8337d66008da","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":152,"box":{"x":70,"y":284,"width":818,"height":10}},{"id":"5731af47-5626-4f3b-81f7-07a65e11b607","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":152,"box":{"x":68,"y":299,"width":401,"height":11}},{"id":"1643c775-8f41-472d-b3e7-fc4be6feb61a","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":152,"box":{"x":167,"y":326,"width":410,"height":11}},{"id":"65c1b8c8-ea1f-44d3-9a00-100163b38938","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":152,"box":{"x":583,"y":327,"width":240,"height":9}},{"id":"9bdeeec4-b347-42b3-a9b3-2b19c0b2aa68","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":152,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"ddbe7bda-663a-4463-b20b-fd74374fd134","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":152,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"70a03a1f-3d1c-4038-a094-23beb7035422","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":152,"box":{"x":167,"y":356,"width":345,"height":11}},{"id":"9ef3788f-394f-419c-9386-100aa9d28056","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":152,"box":{"x":518,"y":357,"width":305,"height":9}},{"id":"933d8e6c-b337-40d7-9014-dd5179f96de2","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":152,"box":{"x":101,"y":381,"width":398,"height":11}},{"id":"10f62e78-fd41-43ed-a3e7-a36e67800693","block_type":"box","text":"®","page_number":152,"box":{"x":500,"y":381,"width":6,"height":5}},{"id":"ff7b1fab-95ec-4f38-b2c2-9984b064c73c","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":152,"box":{"x":513,"y":381,"width":264,"height":11}},{"id":"ea160707-ff92-4924-8193-2729b4093565","block_type":"box","text":"®","page_number":152,"box":{"x":778,"y":381,"width":6,"height":5}},{"id":"cd335afc-ff43-4533-b7bf-c60cdcf64715","block_type":"box","text":"Index 2035","page_number":152,"box":{"x":791,"y":381,"width":79,"height":9}},{"id":"46eb90fd-bef2-406e-9f60-465096a7b7cc","block_type":"box","text":"Fund, BlackRock LifePath","page_number":152,"box":{"x":70,"y":396,"width":177,"height":11}},{"id":"0399261e-0c72-4ee9-8aa7-10cc85fc5d03","block_type":"box","text":"®","page_number":152,"box":{"x":249,"y":397,"width":6,"height":4}},{"id":"c207f777-9e31-45e9-acc1-a39cc9508a9e","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":152,"box":{"x":261,"y":396,"width":265,"height":11}},{"id":"dfa30147-d926-454e-9b6b-e2be5b8dd8dc","block_type":"box","text":"®","page_number":152,"box":{"x":527,"y":397,"width":6,"height":4}},{"id":"4c1edcfe-7b06-4fa6-aa36-0c2ba1a95dad","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":152,"box":{"x":539,"y":396,"width":265,"height":11}},{"id":"12366110-5c7c-4bbb-9591-0174c2562fcc","block_type":"box","text":"®","page_number":152,"box":{"x":805,"y":397,"width":6,"height":4}},{"id":"471b4888-30b9-4a7c-8500-732d2a25779d","block_type":"box","text":"Index 2050","page_number":152,"box":{"x":817,"y":396,"width":80,"height":9}},{"id":"a7958411-52b0-4e6c-bc69-e2c9fb1e45f4","block_type":"box","text":"Fund, BlackRock LifePath","page_number":152,"box":{"x":70,"y":411,"width":177,"height":11}},{"id":"31d7415a-0829-4c34-a316-951265662191","block_type":"box","text":"®","page_number":152,"box":{"x":248,"y":412,"width":6,"height":4}},{"id":"860ae3a3-ba79-485e-afad-e96a993fec05","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":152,"box":{"x":261,"y":411,"width":263,"height":11}},{"id":"64d31cc9-838d-4bc6-b90c-aea9676a6007","block_type":"box","text":"®","page_number":152,"box":{"x":526,"y":412,"width":6,"height":4}},{"id":"655d2be5-ebbf-4f89-8607-04e0950f98bc","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":152,"box":{"x":538,"y":411,"width":264,"height":11}},{"id":"d5879ee1-30dd-46fe-87ee-43606153b572","block_type":"box","text":"®","page_number":152,"box":{"x":803,"y":412,"width":6,"height":4}},{"id":"7f8c9f82-5437-406d-8610-19e3b535f998","block_type":"box","text":"Index 2065","page_number":152,"box":{"x":815,"y":411,"width":80,"height":9}},{"id":"499296f7-6590-4669-b8fd-34c9f1cd7450","block_type":"box","text":"Fund, BlackRock LifePath","page_number":152,"box":{"x":70,"y":426,"width":177,"height":11}},{"id":"488551e0-4755-4155-ad88-92df465d9160","block_type":"box","text":"®","page_number":152,"box":{"x":249,"y":427,"width":6,"height":4}},{"id":"8c115cf4-0137-49bd-b291-4641f91b66ff","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":152,"box":{"x":261,"y":426,"width":291,"height":9}},{"id":"da1a4b8a-1f24-42bf-bf8f-682a22066055","block_type":"box","text":"®","page_number":152,"box":{"x":553,"y":427,"width":6,"height":4}},{"id":"3e41d3b4-41c9-46c2-a796-8c3416ed7740","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":152,"box":{"x":566,"y":426,"width":324,"height":11}},{"id":"a50893be-81ce-4b5d-9b74-d36ec6b65efd","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":152,"box":{"x":68,"y":441,"width":401,"height":12}},{"id":"567aa509-7538-4001-9287-23bad855a238","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":152,"box":{"x":167,"y":469,"width":206,"height":11}},{"id":"5d88f973-cac0-48e8-8a9c-e773864efc75","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":152,"box":{"x":380,"y":469,"width":443,"height":9}},{"id":"969a142e-ca7b-4086-9f93-b860350e93da","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":152,"box":{"x":101,"y":493,"width":657,"height":11}},{"id":"a9d9c9d1-fb48-4389-9bdf-cf4e53dbb517","block_type":"box","text":"SM","page_number":152,"box":{"x":760,"y":494,"width":10,"height":4}},{"id":"d64d093a-ddae-4966-9ea3-6d46a0cec418","block_type":"box","text":", the placement","page_number":152,"box":{"x":773,"y":493,"width":110,"height":11}},{"id":"30ef48a5-27b3-4b46-903f-8d48cdfdcff6","block_type":"box","text":"fees may be up to the following amounts:","page_number":152,"box":{"x":68,"y":508,"width":294,"height":12}},{"id":"dc7affad-f0a9-4fc0-890d-3ad706775adf","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":152,"box":{"x":167,"y":535,"width":206,"height":11}},{"id":"e176be15-e66c-414f-9c21-43197c0381c7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":152,"box":{"x":380,"y":536,"width":443,"height":9}},{"id":"9bc828c6-078c-42fc-aa4a-a317242aa756","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":152,"box":{"x":101,"y":560,"width":787,"height":11}},{"id":"737cf380-2c96-4201-9ec7-3edb159b98ca","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":152,"box":{"x":70,"y":575,"width":808,"height":11}},{"id":"93555950-e054-490d-81e5-772b3e8857cd","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":152,"box":{"x":70,"y":590,"width":393,"height":11}},{"id":"fb64380d-d86d-48c5-b187-412c4aa041a1","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":152,"box":{"x":102,"y":613,"width":740,"height":11}},{"id":"5750fd97-0596-46a2-8fe4-3a03a128ce2f","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":152,"box":{"x":69,"y":627,"width":823,"height":12}},{"id":"ac328857-ad4f-4a31-a153-c822f1614be0","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":152,"box":{"x":68,"y":642,"width":780,"height":12}},{"id":"b9b945a6-1141-407b-9cc7-7db2c4ace4f1","block_type":"box","text":"$1 million).","page_number":152,"box":{"x":69,"y":658,"width":79,"height":11}},{"id":"3d8df6ad-bf17-4eb8-90d1-bfe73118ad0f","block_type":"box","text":"Other.","page_number":152,"box":{"x":102,"y":681,"width":42,"height":9}},{"id":"68303d3d-da29-425e-b117-3ce224f59efa","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":152,"box":{"x":149,"y":681,"width":699,"height":11}},{"id":"117a3543-3274-44cf-a6dc-35fe9b04e94d","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":152,"box":{"x":69,"y":696,"width":839,"height":11}},{"id":"c6b1f71e-4cdc-4a1a-86f7-e542f957bdc2","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":152,"box":{"x":69,"y":711,"width":790,"height":11}},{"id":"6feb7794-c850-489f-9293-ec8e7f0a4847","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":152,"box":{"x":69,"y":726,"width":825,"height":11}},{"id":"6de3dbde-32d3-40dc-b46e-21f7e37e2681","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":152,"box":{"x":68,"y":742,"width":773,"height":10}},{"id":"0175e48d-24b3-49c9-aea8-da9753268d0b","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":152,"box":{"x":70,"y":757,"width":838,"height":11}},{"id":"fde3cd7d-d56f-4ce0-971d-6b9f1afbe2d9","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":152,"box":{"x":68,"y":772,"width":837,"height":11}},{"id":"8aade93f-cb55-4c11-ab6d-8bc3246dc228","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":152,"box":{"x":69,"y":787,"width":836,"height":11}},{"id":"38fb8229-c172-4295-a8b9-33de2b9d3498","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":152,"box":{"x":69,"y":802,"width":793,"height":11}},{"id":"def5299b-a4f2-4878-983e-12543d7eda9b","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":152,"box":{"x":69,"y":817,"width":811,"height":11}},{"id":"47bb904a-f63b-4cdd-a2ed-c1ae43cd15f1","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":152,"box":{"x":68,"y":832,"width":827,"height":11}},{"id":"5ae093ee-53df-4c2a-a3ec-e5646020eed3","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":152,"box":{"x":70,"y":847,"width":782,"height":11}},{"id":"3c0f2550-beb7-47a9-aa81-d6ef390e7930","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":152,"box":{"x":69,"y":862,"width":830,"height":12}},{"id":"34c9d2b5-b34e-4309-8122-848ccd2a6f16","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":152,"box":{"x":69,"y":877,"width":815,"height":12}},{"id":"3d3e27c2-fe57-4860-a495-a714847833d2","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":152,"box":{"x":70,"y":893,"width":799,"height":11}},{"id":"16656272-e96a-40f3-802b-99ea56771b0e","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":152,"box":{"x":69,"y":908,"width":752,"height":11}},{"id":"9183a159-ae19-4686-8239-9b7e94eaa676","block_type":"box","text":"II-105","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4f0eec7a-4ef0-479d-8723-636905ede309","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b1301ed6-37ba-4967-a177-3dfaa21bba24","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":153,"box":{"x":70,"y":45,"width":836,"height":11}},{"id":"8c488086-1a9a-4fc7-99bf-12bef0bc7fc8","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":153,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"92bde1bc-7972-413b-8480-2cc806f2ab60","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":153,"box":{"x":69,"y":75,"width":840,"height":11}},{"id":"184cd275-9cec-4a35-b956-2a66a4034bb0","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":153,"box":{"x":69,"y":90,"width":788,"height":11}},{"id":"0d976b13-25fa-4b37-af5d-f72cc3c2bdc6","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":153,"box":{"x":70,"y":105,"width":838,"height":11}},{"id":"61647fe1-96b6-4506-9b62-696901e213b0","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":153,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"a279a496-a143-48ff-9f47-68a888e997a0","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":153,"box":{"x":68,"y":135,"width":787,"height":11}},{"id":"5e35125c-8acb-4896-9279-4e874df41e75","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":153,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"1c4dfb48-f9dc-4e5a-a207-1cc690c37930","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":153,"box":{"x":70,"y":166,"width":808,"height":11}},{"id":"fe005c0a-01c7-4b80-b5df-115b449112e6","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":153,"box":{"x":69,"y":181,"width":837,"height":11}},{"id":"00dab13c-d36b-4a43-8188-6fa034b1a786","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":153,"box":{"x":70,"y":196,"width":820,"height":11}},{"id":"25640dd2-36c8-43cb-82ac-59c56af7de0f","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":153,"box":{"x":69,"y":211,"width":813,"height":11}},{"id":"6bd458f3-5aaa-4094-b9ff-f4a2938098a9","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":153,"box":{"x":70,"y":226,"width":831,"height":11}},{"id":"75e91400-ca70-4652-ac27-1c1766006720","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":153,"box":{"x":69,"y":241,"width":783,"height":11}},{"id":"47ff768c-1d13-4ae4-9f6c-dbf181a1830e","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":153,"box":{"x":70,"y":256,"width":668,"height":12}},{"id":"526885e0-b008-4a58-812e-bdc2e53592f4","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":153,"box":{"x":102,"y":278,"width":754,"height":12}},{"id":"6b843c25-a5bf-4c1a-92a6-081bcd26ae34","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":153,"box":{"x":70,"y":294,"width":823,"height":11}},{"id":"221d44b9-27ca-4c42-9598-633d31672355","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":153,"box":{"x":69,"y":309,"width":833,"height":11}},{"id":"69b4be92-7a60-4514-bc5c-a4ec2f107766","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":153,"box":{"x":70,"y":324,"width":802,"height":11}},{"id":"3ac6e1fa-964c-4dd8-b2b1-8dd290f0c39a","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":153,"box":{"x":70,"y":339,"width":781,"height":12}},{"id":"d33e904e-7332-4854-8c28-7201020f8941","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":153,"box":{"x":70,"y":355,"width":819,"height":11}},{"id":"f9c55986-0fd0-4ca4-92ec-aa733de5e582","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":153,"box":{"x":68,"y":370,"width":835,"height":11}},{"id":"b3869599-ce0f-486d-a139-09576a969e88","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":153,"box":{"x":69,"y":385,"width":813,"height":11}},{"id":"11357ff5-b792-4cc5-8e4c-5d9f7e68ad38","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":153,"box":{"x":70,"y":399,"width":792,"height":11}},{"id":"e36c562f-eba7-496c-b224-7aefbe4c5e24","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":153,"box":{"x":70,"y":415,"width":813,"height":11}},{"id":"e8642714-210f-4a77-b9a3-1d3fda7218dd","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":153,"box":{"x":70,"y":430,"width":837,"height":11}},{"id":"1505d622-b200-4b26-873c-8e8991d6b759","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":153,"box":{"x":70,"y":445,"width":790,"height":11}},{"id":"44b97ab2-c083-4149-a946-21956bc93919","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":153,"box":{"x":69,"y":460,"width":736,"height":12}},{"id":"aa9d2ec0-ca5c-4576-90d9-798052744665","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":153,"box":{"x":101,"y":483,"width":763,"height":11}},{"id":"7ece3c19-82a0-4dde-841d-9ecb47889a22","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":153,"box":{"x":70,"y":498,"width":782,"height":11}},{"id":"7a3f8dc7-ec83-43c2-b2e3-eb56ff10d4d7","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":153,"box":{"x":70,"y":513,"width":832,"height":12}},{"id":"04092a62-a60a-4afe-aa48-9bfd3447c862","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":153,"box":{"x":68,"y":528,"width":839,"height":12}},{"id":"7160f866-be21-4163-94e3-9cf0742754f0","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":153,"box":{"x":69,"y":543,"width":817,"height":12}},{"id":"6791b1f3-24c7-48f8-a4bd-c6d8755cf8d0","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":153,"box":{"x":69,"y":559,"width":811,"height":11}},{"id":"b0fe34a2-a36c-47d5-9523-f45cc7a6aa06","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":153,"box":{"x":70,"y":574,"width":818,"height":11}},{"id":"feed2d8e-c2c1-4882-9bc4-7fcf13497d36","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":153,"box":{"x":69,"y":589,"width":836,"height":11}},{"id":"e9a6644e-2c70-4297-96c3-9a1b5809afaa","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":153,"box":{"x":69,"y":604,"width":830,"height":11}},{"id":"c9515c74-ca2c-4d1d-b75b-152741872e03","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":153,"box":{"x":70,"y":619,"width":778,"height":11}},{"id":"3fc6ef92-819c-4e37-9784-7e59d06bfd82","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":153,"box":{"x":70,"y":634,"width":526,"height":12}},{"id":"3932b622-331b-4af5-97a4-e27802e95fca","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":153,"box":{"x":101,"y":657,"width":788,"height":11}},{"id":"6ea78254-b6df-4dec-8066-a60a4d91f92d","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":153,"box":{"x":69,"y":672,"width":819,"height":11}},{"id":"a78a3251-eb6f-42ca-bbb6-d5dc217c0b90","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":153,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"b955e17d-de6e-4f9e-9bba-a5905fe3720e","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":153,"box":{"x":69,"y":702,"width":837,"height":11}},{"id":"a7223432-7df2-4d4f-a3df-8a11f7c16b0c","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":153,"box":{"x":68,"y":718,"width":812,"height":11}},{"id":"903e4fcd-c153-4e2b-bc4e-9935db976e84","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":153,"box":{"x":69,"y":732,"width":803,"height":12}},{"id":"bb7f401e-c7d9-4993-8f80-f647be6b895e","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":153,"box":{"x":69,"y":748,"width":772,"height":11}},{"id":"288a78c1-f6d8-426c-b6c6-13f2b253f192","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":153,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"972661cd-1571-4faf-91d6-538d49aa9523","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":153,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"ea9bd38b-9b41-4eaa-8a19-08cae1108947","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":153,"box":{"x":70,"y":793,"width":772,"height":11}},{"id":"1d40f776-3596-43f9-a43e-866c33849b09","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":153,"box":{"x":69,"y":808,"width":805,"height":11}},{"id":"ca4f19fc-ac20-4096-afa4-81939c281854","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":153,"box":{"x":69,"y":823,"width":817,"height":12}},{"id":"85e4b4d3-fe50-4d92-b27e-3fe6dfb64ad5","block_type":"box","text":"the absolute discretion of a Fund.","page_number":153,"box":{"x":68,"y":838,"width":239,"height":9}},{"id":"c2085260-ac81-4272-b878-de17835cc3c1","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":153,"box":{"x":101,"y":861,"width":794,"height":11}},{"id":"a0cc885c-5af2-4b02-9cb6-2ee9714a2dec","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":153,"box":{"x":68,"y":875,"width":776,"height":12}},{"id":"4620f4c4-b8e8-42ab-96ab-9dea9736e4c2","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":153,"box":{"x":70,"y":891,"width":821,"height":12}},{"id":"ffaf7cca-234f-4d3f-8635-d74568f4b0e2","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":153,"box":{"x":70,"y":906,"width":800,"height":11}},{"id":"a5fc97fd-0cb9-431d-b670-da70c134c788","block_type":"box","text":"II-106","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5fe80d56-f645-4b84-ad8f-03df733f83e3","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b8aa7d91-c9bc-4201-97ea-c5aa88958b17","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":154,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"a4ac071c-0b2b-45c9-9384-5485d9fa9bed","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":154,"box":{"x":70,"y":60,"width":823,"height":11}},{"id":"011fb828-1649-43f4-a7d8-241d2c643b78","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":154,"box":{"x":70,"y":75,"width":770,"height":11}},{"id":"da2ec88f-7bef-41f6-9465-bb0f6cd8fb9a","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":154,"box":{"x":70,"y":90,"width":766,"height":11}},{"id":"f6610ecf-5fbc-4525-aaa7-cfded03e3aaa","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":154,"box":{"x":69,"y":105,"width":837,"height":11}},{"id":"716cc93c-10e1-48c6-9ea8-b0e3f67b18a0","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":154,"box":{"x":70,"y":120,"width":805,"height":11}},{"id":"a9d8f191-fa60-418b-be86-8c97ecee04fd","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":154,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"83441e93-6a80-4d41-af31-eed8344e2cd7","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":154,"box":{"x":70,"y":150,"width":828,"height":12}},{"id":"42062905-f86e-489a-baad-1b3ddb4cca86","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":154,"box":{"x":70,"y":166,"width":746,"height":11}},{"id":"c2744022-9791-47dc-9342-62f94b6692f4","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":154,"box":{"x":70,"y":181,"width":307,"height":11}},{"id":"a16781fc-e774-41a6-9eb9-92fb478bbac6","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":154,"box":{"x":102,"y":203,"width":799,"height":12}},{"id":"ceda39f4-4742-4209-87e2-b90ab9097fc6","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":154,"box":{"x":68,"y":218,"width":829,"height":12}},{"id":"56ab4e81-1600-4f89-af29-579e4d7f07c0","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":154,"box":{"x":68,"y":234,"width":317,"height":11}},{"id":"67c8c6bc-d7a9-4540-8101-194a936248a0","block_type":"box","text":"Acquisition of Certain Investment Companies.","page_number":154,"box":{"x":101,"y":256,"width":335,"height":11}},{"id":"de363bc9-978b-4a78-8f0e-c821a3d070e1","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":154,"box":{"x":443,"y":256,"width":413,"height":11}},{"id":"4c766ce8-493d-478d-b667-334181136c85","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":154,"box":{"x":69,"y":271,"width":811,"height":12}},{"id":"74500e05-7ad8-4ec6-8cf8-ad862c5f001b","block_type":"box","text":"public or private investment company.","page_number":154,"box":{"x":70,"y":287,"width":266,"height":11}},{"id":"46ed7a00-fc8e-44aa-9ac5-e296137eadc6","block_type":"box","text":"Purchases Through Certain Financial Intermediaries","page_number":154,"box":{"x":102,"y":309,"width":379,"height":11}},{"id":"823eae6b-e4df-4a0a-8c77-f348ef8ff4de","block_type":"box","text":".","page_number":154,"box":{"x":482,"y":317,"width":2,"height":1}},{"id":"3bfe916b-7996-49c1-b41f-ad2b83788ee1","block_type":"box","text":"Reduced sales charges may be applicable for purchases","page_number":154,"box":{"x":491,"y":309,"width":402,"height":11}},{"id":"796f4955-5566-4a29-a132-9ca27bdbf061","block_type":"box","text":"of Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities","page_number":154,"box":{"x":69,"y":324,"width":787,"height":12}},{"id":"8a8f6431-f88e-436d-af5b-28eaa0e32a28","block_type":"box","text":"dealers and other financial intermediaries that meet and adhere to standards established by the Manager from time","page_number":154,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"a61b46c5-4f3f-483c-a8a0-c35c1a4b4f7e","block_type":"box","text":"to time.","page_number":154,"box":{"x":68,"y":355,"width":54,"height":9}},{"id":"71e39de7-7428-4a2c-b094-f533f20392fa","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":154,"box":{"x":69,"y":385,"width":405,"height":11}},{"id":"4f9cbd05-d437-4368-ad2d-145928722735","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":154,"box":{"x":102,"y":407,"width":799,"height":12}},{"id":"b4ea1cdc-722c-4ee4-aee4-fcc43224d3b7","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":154,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"54855cc3-6b18-4808-af02-9d0b4516a209","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":154,"box":{"x":70,"y":437,"width":778,"height":12}},{"id":"b7cb1186-3140-4575-8c79-d7bc56815606","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":154,"box":{"x":70,"y":453,"width":826,"height":11}},{"id":"74d0e2ff-5045-4a45-9d0b-215eb1626260","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":154,"box":{"x":69,"y":468,"width":311,"height":9}},{"id":"81f46f32-b2cf-4ba7-b16f-d25010d6e02b","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":154,"box":{"x":102,"y":491,"width":789,"height":11}},{"id":"8fbdec66-ed0d-4bdc-9da2-7b033e8d53e2","block_type":"box","text":"intermediary associated with the account.","page_number":154,"box":{"x":70,"y":506,"width":297,"height":11}},{"id":"3959e692-3387-4140-9ba5-fa8cebc8f075","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":154,"box":{"x":102,"y":528,"width":669,"height":12}},{"id":"d8d548f0-652a-453a-9018-b8fb3d29f95f","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":154,"box":{"x":101,"y":551,"width":763,"height":11}},{"id":"4b3b14e7-01a3-47ea-bb87-5410c37ddca9","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":154,"box":{"x":69,"y":566,"width":815,"height":11}},{"id":"3c9246b9-dd9e-47af-8122-6acb3b1bd8fa","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":154,"box":{"x":68,"y":581,"width":813,"height":11}},{"id":"1717ff5d-4f16-4f70-aac9-30161623498d","block_type":"box","text":"CDSC shares.","page_number":154,"box":{"x":69,"y":597,"width":97,"height":8}},{"id":"45e99276-4fef-4ce2-95a1-9c36af976e1e","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":154,"box":{"x":102,"y":619,"width":804,"height":11}},{"id":"bbc9e3c5-956d-4d1d-9b7b-219d6e775d0e","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":154,"box":{"x":69,"y":634,"width":827,"height":11}},{"id":"e4459ae3-4cca-48db-b121-5f58939e4a4b","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":154,"box":{"x":69,"y":649,"width":786,"height":12}},{"id":"11e9290a-d5cd-46c8-9906-ef1600ec9547","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":154,"box":{"x":70,"y":664,"width":831,"height":12}},{"id":"8e5ca609-ee72-4e8a-8754-0db5c162754b","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":154,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"f20ce0fb-aef4-41bb-9051-7d9a609fb822","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":154,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"ae55cd0a-8d4a-4493-81e7-8c5b5949785e","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":154,"box":{"x":70,"y":710,"width":822,"height":11}},{"id":"076552ae-805b-407a-a534-476048a04316","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":154,"box":{"x":69,"y":725,"width":618,"height":11}},{"id":"f30cf364-d425-4219-9437-3bbde9ddc6e6","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":154,"box":{"x":102,"y":748,"width":782,"height":11}},{"id":"b8ff8241-4975-450a-ab10-60754e9778bd","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":154,"box":{"x":70,"y":763,"width":764,"height":11}},{"id":"347c13a6-9b89-458b-82bc-b8434204a2f1","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":154,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"c060f3f9-25d2-4d91-8454-b4c605c01370","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":154,"box":{"x":70,"y":793,"width":806,"height":11}},{"id":"66fc811f-51b3-4a9a-9162-a1b2a1f857bc","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":154,"box":{"x":70,"y":808,"width":813,"height":11}},{"id":"2fc771c8-5e4e-47ea-9880-89003b0a4758","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":154,"box":{"x":68,"y":823,"width":811,"height":11}},{"id":"c043bf13-d7cf-439b-8229-ba280f133fbd","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":154,"box":{"x":68,"y":838,"width":554,"height":12}},{"id":"143cfa58-2847-4b8c-86ce-5965003de704","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":154,"box":{"x":102,"y":861,"width":783,"height":11}},{"id":"13077163-c570-47e5-877f-22b9040309dc","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":154,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"0368fe75-0500-479e-a246-09d131ff81e7","block_type":"box","text":"II-107","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0967cdc1-6b95-439d-90a1-a6f046e8aa1f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3b94d46f-d94e-4498-9721-f9f3b006325a","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":155,"box":{"x":70,"y":45,"width":797,"height":11}},{"id":"a16a7e76-b6cc-4f81-a5e4-c2a99023fdf5","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":155,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"a09ca801-d2ed-469a-8a92-6a1e0b20b90a","block_type":"box","text":"Investor A Shares.","page_number":155,"box":{"x":70,"y":75,"width":128,"height":9}},{"id":"ad0a5414-bf55-48f7-9212-795b996f0a16","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":155,"box":{"x":102,"y":98,"width":388,"height":9}},{"id":"54fc9aae-86cf-4961-b384-9235b3b92e5a","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":155,"box":{"x":102,"y":120,"width":804,"height":12}},{"id":"3870e0dd-2144-444a-884f-5f1a5becba35","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":155,"box":{"x":69,"y":135,"width":794,"height":11}},{"id":"d966efc0-e4b1-47e3-a1b6-12be01e232fe","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":155,"box":{"x":69,"y":150,"width":794,"height":12}},{"id":"5567520d-e1e0-46aa-a10a-f8c0686b6577","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":155,"box":{"x":69,"y":166,"width":806,"height":11}},{"id":"f03c5564-b717-4b9d-90d4-f1221912e24f","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":155,"box":{"x":70,"y":181,"width":793,"height":11}},{"id":"2ee1035e-63f1-4c56-81ac-fc016eaf404e","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":155,"box":{"x":69,"y":196,"width":796,"height":11}},{"id":"82712a8c-645a-4012-abcf-72ba114002d0","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":155,"box":{"x":69,"y":211,"width":802,"height":11}},{"id":"04492b25-020e-41f9-b0f5-42949428b232","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":155,"box":{"x":69,"y":226,"width":793,"height":11}},{"id":"e22a3a00-8582-4001-add9-18c79654313d","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":155,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"4897d38f-6283-44eb-9fcf-f3a18975a20e","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":155,"box":{"x":68,"y":256,"width":814,"height":12}},{"id":"86d77fcd-37e2-4d18-8f1d-38894ed7808e","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":155,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"b13c8ad0-1831-49a9-a020-a0a0b7eefcb8","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":155,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"a53d316a-2545-4ac9-afa3-cd4b4573cdde","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":155,"box":{"x":69,"y":302,"width":718,"height":11}},{"id":"93d21aeb-821f-4898-b164-1c7a0784a946","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":155,"box":{"x":102,"y":324,"width":764,"height":12}},{"id":"3eaa7c49-37eb-4289-8fe3-3d73f729bdb9","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":155,"box":{"x":70,"y":340,"width":816,"height":11}},{"id":"1beb5421-5118-4365-83ba-987e6f8a3a4d","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":155,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"e85a1eb7-0a6a-48e8-a0fb-f07c2554d0f0","block_type":"box","text":"“Investor C Conversions”).","page_number":155,"box":{"x":70,"y":370,"width":186,"height":11}},{"id":"251fce56-b60b-46a2-9a9a-e40cc86d82f8","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":155,"box":{"x":101,"y":392,"width":776,"height":11}},{"id":"f6a51e1b-3d2f-41c7-aad6-c699da73e66e","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":155,"box":{"x":69,"y":407,"width":824,"height":11}},{"id":"993bbf6b-5665-4bad-b6d2-773fc983a756","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":155,"box":{"x":70,"y":423,"width":827,"height":11}},{"id":"11945269-4585-43ec-b3c7-9506c3bfca31","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":155,"box":{"x":69,"y":438,"width":833,"height":11}},{"id":"7be57fd4-6c40-4517-b8b3-3f7bfa434867","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":155,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"9f10a321-4902-4c2b-9625-610d96334ab3","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":155,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"fb3af9e1-29e8-484d-ad81-43c40f4e1e65","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":155,"box":{"x":69,"y":483,"width":445,"height":11}},{"id":"3d12b08d-eafa-43ec-a8b8-53f836fa3d9c","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":155,"box":{"x":102,"y":506,"width":405,"height":11}},{"id":"a008d1a6-1eb7-48cb-9882-3abef8882921","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":155,"box":{"x":102,"y":528,"width":804,"height":12}},{"id":"b9fa81ee-9dbb-4e14-a85f-46295c9bd4f0","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":155,"box":{"x":70,"y":543,"width":826,"height":12}},{"id":"f2ef08aa-4182-4684-9bdc-6c75dd87d955","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":155,"box":{"x":69,"y":559,"width":837,"height":11}},{"id":"c8c58606-b65a-489f-a0b1-f2b6d2a5f6e7","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":155,"box":{"x":68,"y":574,"width":795,"height":11}},{"id":"338ef459-e5a8-48a0-8af5-da6cd7c1230f","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":155,"box":{"x":69,"y":589,"width":840,"height":11}},{"id":"8e2d94b2-d6cc-4365-987f-be312ce81fda","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":155,"box":{"x":70,"y":604,"width":804,"height":11}},{"id":"5b112f9e-3337-4fb4-882e-8ceed30ea2ac","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":155,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"aafab7a5-a53f-42ba-90c5-211c97a917c5","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":155,"box":{"x":70,"y":634,"width":790,"height":12}},{"id":"2ecf9890-ac61-434a-9cdc-150c3212a85e","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":155,"box":{"x":69,"y":649,"width":776,"height":9}},{"id":"89bc823f-a1e1-40af-8b11-038903d7db41","block_type":"box","text":"redemption.","page_number":155,"box":{"x":69,"y":665,"width":83,"height":10}},{"id":"9a7b06e8-a123-4dcc-9bdd-d29e2e2af8d6","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":155,"box":{"x":102,"y":687,"width":734,"height":11}},{"id":"fa18a694-9892-401f-89f7-26e7074ee499","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":155,"box":{"x":70,"y":702,"width":769,"height":11}},{"id":"2223580f-d648-41ee-91e8-672baaf9f9cb","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":155,"box":{"x":102,"y":725,"width":586,"height":11}},{"id":"c61126db-bf50-4ef8-8e13-6d762f9b8fe2","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":155,"box":{"x":101,"y":748,"width":740,"height":11}},{"id":"d3735748-a9d3-448f-a536-2d352b3b83e6","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":155,"box":{"x":70,"y":763,"width":802,"height":11}},{"id":"a90b25b7-3c3e-4926-965e-9c53b23e8718","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":155,"box":{"x":69,"y":778,"width":786,"height":11}},{"id":"4fa982f8-dcdf-4e48-85c8-82ca3f3d6af7","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":155,"box":{"x":70,"y":793,"width":797,"height":11}},{"id":"1d7726d5-6cc3-489f-8990-e9a7081861a2","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":155,"box":{"x":69,"y":808,"width":776,"height":11}},{"id":"83781b28-1030-4a2a-a693-eb2f1377a6ad","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":155,"box":{"x":69,"y":823,"width":747,"height":11}},{"id":"7a109e65-d559-4d54-af85-288d7f40eb47","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":155,"box":{"x":69,"y":838,"width":822,"height":12}},{"id":"b994be9e-d8bc-4fe5-9cfb-fe9b85c636e3","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":155,"box":{"x":68,"y":853,"width":836,"height":12}},{"id":"74a2de2e-49be-4db7-bb95-06ee6bb4671c","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":155,"box":{"x":69,"y":869,"width":806,"height":11}},{"id":"b50ab256-4389-46d3-99b3-e43c0ecfba7e","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":155,"box":{"x":69,"y":884,"width":786,"height":11}},{"id":"710d405a-2f89-4b76-89d1-abb40866a5ff","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":155,"box":{"x":70,"y":899,"width":834,"height":11}},{"id":"75484794-1767-4df0-bf37-ae31867fe15b","block_type":"box","text":"II-108","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7f6ccc15-5fc4-4a35-a679-a878617709a9","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dfcf0303-eec9-4b46-9caa-d90e42d5cc9a","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":156,"box":{"x":70,"y":45,"width":809,"height":11}},{"id":"b07a14d3-b0f0-44d7-8533-b182844a0965","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":156,"box":{"x":70,"y":60,"width":791,"height":11}},{"id":"24ef768d-8aad-435f-ae7d-1ddba0e84d9d","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":156,"box":{"x":70,"y":75,"width":784,"height":11}},{"id":"5ac56841-8aa4-4fed-9f9b-bf0272e0115d","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":156,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"90ade988-2579-4f07-9744-96f06c53870e","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":156,"box":{"x":69,"y":105,"width":451,"height":11}},{"id":"8b8ecd3c-ab2b-45cc-a2e0-d8888908add1","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":156,"box":{"x":102,"y":128,"width":781,"height":11}},{"id":"527c8cbf-514a-4405-916e-d1035f79187a","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":156,"box":{"x":70,"y":143,"width":813,"height":11}},{"id":"bec459d2-e812-42ba-988a-64e2aa84a606","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":156,"box":{"x":69,"y":158,"width":462,"height":11}},{"id":"28e9fd7b-81d7-47bd-b78e-a757367934fc","block_type":"box","text":"Class R Shares","page_number":156,"box":{"x":69,"y":188,"width":110,"height":9}},{"id":"a3927525-e046-4d4f-8d23-f7b654b547ea","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":156,"box":{"x":102,"y":211,"width":775,"height":11}},{"id":"ab5bb915-2a2f-4d63-9752-55f5e7d277b3","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":156,"box":{"x":69,"y":226,"width":799,"height":11}},{"id":"84596afb-01aa-4206-99ff-0a3ccd5c347a","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":156,"box":{"x":69,"y":241,"width":801,"height":11}},{"id":"ab3085fd-4bbe-4598-8665-3966def5108a","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":156,"box":{"x":69,"y":256,"width":772,"height":12}},{"id":"c0e1ed10-7ea9-4b6e-aae6-77dc24c5ffba","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":156,"box":{"x":69,"y":271,"width":836,"height":12}},{"id":"cceccf0c-4d52-4d12-9f75-92efa3cd7b30","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":156,"box":{"x":68,"y":286,"width":636,"height":11}},{"id":"5bce44cc-f9fc-4b5e-b782-c595791d87b5","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":156,"box":{"x":102,"y":309,"width":791,"height":11}},{"id":"616e953a-acdb-40de-89f5-6f14788ccc0a","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":156,"box":{"x":69,"y":324,"width":440,"height":11}},{"id":"29770c5c-6e6d-45a8-91e9-858a4011cef5","block_type":"box","text":"Class K Shares","page_number":156,"box":{"x":69,"y":355,"width":109,"height":9}},{"id":"9cba2b04-c902-429d-a053-eb8cb5614312","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":156,"box":{"x":102,"y":377,"width":797,"height":11}},{"id":"fd96f7a4-c582-4d5c-a49f-9111a15cf63c","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":156,"box":{"x":69,"y":392,"width":772,"height":12}},{"id":"39213dff-b1b6-4e5e-983b-8faa7ab3b744","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":156,"box":{"x":69,"y":408,"width":827,"height":11}},{"id":"587c6bc6-9600-40c7-806c-c1ce2bc0b757","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":156,"box":{"x":69,"y":423,"width":817,"height":11}},{"id":"40ea7dbf-ce14-4050-869f-c839a9bd8e0b","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":156,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"1684e498-1c5a-4bfc-a8f1-c0efcf3c2b69","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":156,"box":{"x":68,"y":453,"width":748,"height":11}},{"id":"1402ca06-0c64-4b35-981d-3c56d0fe9671","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":156,"box":{"x":68,"y":468,"width":828,"height":11}},{"id":"5936c3e3-6f24-4d36-984f-9e59561a04d1","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":156,"box":{"x":70,"y":483,"width":760,"height":11}},{"id":"36d47afb-81b6-4a20-80a7-7800609e3322","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":156,"box":{"x":70,"y":498,"width":823,"height":11}},{"id":"a8239bf4-af7d-4eb3-a110-155a09962e35","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":156,"box":{"x":69,"y":513,"width":836,"height":12}},{"id":"b5ca6c4e-b1ab-4443-8fb9-1f7dba248abd","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":156,"box":{"x":70,"y":528,"width":814,"height":12}},{"id":"8d23d27e-f8e6-4dfa-909a-d6089a4bc25d","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":156,"box":{"x":69,"y":543,"width":817,"height":12}},{"id":"b57d951a-f6f2-460c-a06f-289a2ea0bac6","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":156,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"b4a06ecc-a49e-4818-96ca-666a08734e68","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":156,"box":{"x":70,"y":574,"width":818,"height":11}},{"id":"0af99bb2-dbe7-4a4f-84f1-21c98cc5d780","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":156,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"ea53e1ef-7c57-4f74-ba9a-39e86ba39abc","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":156,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"13bcaebc-7932-4e63-a807-c14caa2682e2","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":156,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"c947e2a0-e7a8-4dba-b333-836eb3c2e2d2","block_type":"box","text":"distribution and marketing agreement.","page_number":156,"box":{"x":69,"y":634,"width":270,"height":12}},{"id":"3f1ee45e-502c-4677-af5d-bfcc6499301c","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":156,"box":{"x":102,"y":657,"width":734,"height":11}},{"id":"a2249952-95a8-468d-982c-a9093be7703f","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":156,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"9b7f2ecc-8044-4ee9-af17-68b1f45fecca","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":156,"box":{"x":70,"y":687,"width":753,"height":11}},{"id":"aa7af7c2-e876-4755-8e52-480ca9294067","block_type":"box","text":"Class G Shares","page_number":156,"box":{"x":69,"y":718,"width":110,"height":8}},{"id":"da6d598a-7375-4893-9dca-11ed3782b061","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":156,"box":{"x":102,"y":740,"width":804,"height":11}},{"id":"d8c9c686-c21a-4dce-bb95-3057d53f7875","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":156,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"82d84b02-72cf-40a4-bb70-5e1e2293bd74","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":156,"box":{"x":68,"y":770,"width":836,"height":12}},{"id":"918b97e7-0312-4cc3-a23b-49cd794f2082","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":156,"box":{"x":69,"y":786,"width":803,"height":11}},{"id":"e5bc1b57-f257-4478-92ee-1613b35bd69a","block_type":"box","text":"eligibility requirements.","page_number":156,"box":{"x":69,"y":801,"width":164,"height":11}},{"id":"cd43dc5c-9a0e-4535-b85e-b247e6d49a72","block_type":"box","text":"Service Shares","page_number":156,"box":{"x":68,"y":831,"width":109,"height":9}},{"id":"85991f65-f496-4242-8de5-10da1df3e9f0","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":156,"box":{"x":102,"y":853,"width":788,"height":12}},{"id":"690413e6-578e-434e-9d42-e69ea6208cc9","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":156,"box":{"x":70,"y":869,"width":815,"height":11}},{"id":"890fc937-833b-49d4-bddb-050b3b595713","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":156,"box":{"x":69,"y":884,"width":693,"height":11}},{"id":"fa59bd8e-4046-4496-8fcf-1287f57c911c","block_type":"box","text":"®","page_number":156,"box":{"x":763,"y":884,"width":6,"height":5}},{"id":"e9ce1fa8-3718-4330-bdc9-9fdb8f6e92ff","block_type":"box","text":"Fund in 1996; and","page_number":156,"box":{"x":775,"y":884,"width":130,"height":10}},{"id":"61dc394c-1e02-42d3-808a-a5d0f95f9470","block_type":"box","text":"II-109","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4b2a42ca-3268-4a11-b836-b8aca794abf5","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9f50b7d4-40db-4b1a-950f-f6f9c87f09b3","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":157,"box":{"x":69,"y":45,"width":287,"height":11}},{"id":"3bf4d892-671c-4e6a-9093-8d233d29b926","block_type":"box","text":"SM","page_number":157,"box":{"x":357,"y":45,"width":11,"height":4}},{"id":"8bd67aef-3cf9-4f65-9152-a4fbe69822c0","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":157,"box":{"x":374,"y":45,"width":534,"height":11}},{"id":"01bb8fb9-f2cf-45b9-b936-8bab53b2bc8c","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":157,"box":{"x":69,"y":60,"width":776,"height":11}},{"id":"5cd9dab1-fb4f-4ce1-9e93-06e523f95487","block_type":"box","text":"BlackRock Shares","page_number":157,"box":{"x":69,"y":90,"width":133,"height":9}},{"id":"00d8a352-da7d-49cf-940b-575d1688bee5","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":157,"box":{"x":102,"y":113,"width":760,"height":11}},{"id":"cbd99089-8096-4589-b5f2-12070171e448","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":157,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"eea0a40e-b0cf-4078-992e-ab5c4fb36ed5","block_type":"box","text":"fee-based programs.","page_number":157,"box":{"x":68,"y":143,"width":145,"height":11}},{"id":"a570c15b-7c72-4fe1-8431-c15e1e451e13","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":157,"box":{"x":69,"y":173,"width":348,"height":11}},{"id":"7f366d93-e7a4-400c-9c01-e328900956c0","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":157,"box":{"x":102,"y":196,"width":790,"height":11}},{"id":"faf2a345-0fac-4d32-990f-1a79f1795350","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":157,"box":{"x":69,"y":211,"width":761,"height":11}},{"id":"8ac1e4c5-a46b-4552-9b10-0022b81dda77","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":157,"box":{"x":69,"y":226,"width":541,"height":11}},{"id":"56280668-7a36-42e3-812f-73ad1a03e820","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":157,"box":{"x":102,"y":249,"width":803,"height":11}},{"id":"45d02cce-53b9-4489-9444-f0d33b1d5f32","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":157,"box":{"x":70,"y":264,"width":783,"height":11}},{"id":"0df61fb5-6d88-4cd8-92c2-98df6ac92f31","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":157,"box":{"x":70,"y":279,"width":809,"height":11}},{"id":"8d15fcf2-7c78-49ec-8a75-d3fd0d471201","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":157,"box":{"x":69,"y":294,"width":360,"height":11}},{"id":"5ef8fddf-163a-4d83-84b4-b84c963351d3","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":157,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"93ec6c28-451c-4ab9-a769-330bfb4f2fc1","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":157,"box":{"x":69,"y":332,"width":824,"height":11}},{"id":"266b1090-b1fa-412d-b49d-5a766567bcee","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":157,"box":{"x":69,"y":347,"width":812,"height":11}},{"id":"d87f3fb0-4f6e-4ff9-b4c0-fb78fc5aab71","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":157,"box":{"x":68,"y":362,"width":355,"height":11}},{"id":"90bf603c-960b-4f7c-b839-c3c226de6f21","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":157,"box":{"x":102,"y":385,"width":727,"height":11}},{"id":"db0ece8a-d84b-4c07-a1b7-72ef715d4fcf","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":157,"box":{"x":69,"y":400,"width":799,"height":11}},{"id":"2f0f8f7e-4492-4c7f-9a5d-f22ece12b467","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":157,"box":{"x":69,"y":415,"width":813,"height":11}},{"id":"e769349b-15d5-4c40-a20f-24dd20058655","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":157,"box":{"x":69,"y":430,"width":809,"height":11}},{"id":"8b0307fa-4c15-41ed-b013-acf41a68bc6e","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":157,"box":{"x":68,"y":445,"width":786,"height":11}},{"id":"2e7a420d-36ca-4681-8879-57ca4d9fc0b0","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":157,"box":{"x":69,"y":460,"width":789,"height":12}},{"id":"5351b2f1-9944-4666-8f46-101f40523e87","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":157,"box":{"x":70,"y":475,"width":562,"height":12}},{"id":"fa31ff20-a8fe-4098-adc2-0c3f6a1a3188","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":157,"box":{"x":101,"y":498,"width":798,"height":11}},{"id":"e1bad6bb-0bb3-46eb-942a-5c3aa3274efc","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":157,"box":{"x":69,"y":513,"width":808,"height":12}},{"id":"1f6b0dd3-c8a6-4111-adcf-d7193e62095c","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":157,"box":{"x":70,"y":528,"width":776,"height":12}},{"id":"54bcebb6-0344-48c2-99f0-340969ac035b","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":157,"box":{"x":70,"y":544,"width":835,"height":11}},{"id":"10502dcf-6e28-4e03-9e5e-60a14a90c3d6","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":157,"box":{"x":69,"y":559,"width":791,"height":11}},{"id":"862e1e9a-1386-450a-ab29-d9ecd7a84607","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":157,"box":{"x":69,"y":574,"width":813,"height":11}},{"id":"1f124749-874f-4429-acbe-7a32ea8080d5","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":157,"box":{"x":68,"y":589,"width":501,"height":11}},{"id":"2959a0a1-d8de-46a5-b933-57eb3e60fe8c","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":157,"box":{"x":102,"y":612,"width":783,"height":11}},{"id":"99d3bb27-1ad8-472f-9bad-86e8e7c83b12","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":157,"box":{"x":68,"y":627,"width":810,"height":11}},{"id":"b4dbe449-e76d-4c9e-b17b-9c240af6c5a7","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":157,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"efa4f988-16c1-4f51-8307-ee6e108a0fc4","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":157,"box":{"x":68,"y":657,"width":836,"height":11}},{"id":"675a1861-f351-43fc-9422-2b0d5e4bbc2e","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":157,"box":{"x":70,"y":672,"width":805,"height":11}},{"id":"3de66085-a154-4306-8ebe-cd7077fb72c0","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":157,"box":{"x":69,"y":687,"width":832,"height":11}},{"id":"7f2803ce-4624-4a44-98ec-b59ef5db3801","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":157,"box":{"x":68,"y":702,"width":803,"height":12}},{"id":"68c638df-1388-4ec4-bb12-a13a49429cda","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":157,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"a215395f-91a6-4773-8dba-6051937c1003","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":157,"box":{"x":69,"y":733,"width":798,"height":11}},{"id":"9449d128-aeac-42d8-a6fb-1b72655433b6","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":157,"box":{"x":69,"y":748,"width":755,"height":11}},{"id":"42a2519f-ef6f-4339-96ae-dd7c997f3055","block_type":"box","text":"compensation for selling different classes of shares.","page_number":157,"box":{"x":69,"y":763,"width":375,"height":11}},{"id":"aed07f49-5ae4-495a-ba0e-057175a951ac","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":157,"box":{"x":102,"y":785,"width":803,"height":12}},{"id":"be5855a2-26a8-419d-9750-1dc28a3ae8af","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":157,"box":{"x":69,"y":801,"width":839,"height":11}},{"id":"b7768dff-9428-49ed-a403-fe29c565923c","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":157,"box":{"x":68,"y":816,"width":788,"height":11}},{"id":"37f2d816-00f4-453e-977e-011ec78e27d2","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":157,"box":{"x":70,"y":831,"width":818,"height":9}},{"id":"bb724127-e56c-4c66-96e2-0c4c7d280cfe","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":157,"box":{"x":69,"y":846,"width":824,"height":11}},{"id":"f5c12103-2a4b-440c-a333-32d10fe0dfe9","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":157,"box":{"x":69,"y":861,"width":821,"height":11}},{"id":"03831d59-ed72-4b16-b665-d1c999e5654b","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":157,"box":{"x":69,"y":876,"width":778,"height":11}},{"id":"97b07666-f3cc-4285-bb38-5f824ac7ba65","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":157,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"bebe31c4-8afe-4e99-bee7-776e124d6be9","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":157,"box":{"x":69,"y":906,"width":796,"height":12}},{"id":"b2fa4a28-6691-4ee5-ab16-81c8ba56053d","block_type":"box","text":"II-110","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6eabe822-0e12-4edd-a96c-be799126390d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc052da3-670f-48dd-8c84-066c97ec6854","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":158,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"524e0978-4d43-476a-9ecb-d84ac8599587","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":158,"box":{"x":70,"y":60,"width":801,"height":11}},{"id":"f69b7ab0-2215-4805-8001-463aab5aa484","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":158,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"1e775014-823d-472b-8475-3df95ba8e3e3","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":158,"box":{"x":70,"y":90,"width":802,"height":11}},{"id":"6b4efe63-bd46-4b70-a5d0-ff186fa5d243","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":158,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"4d0211b5-4e4e-4c7b-a007-9bfb992aa5d5","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":158,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"45f12361-d0d9-437f-a043-2eb985301b81","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":158,"box":{"x":69,"y":135,"width":836,"height":11}},{"id":"fa2e2209-ebe4-47a7-a5ea-3249482e6f5e","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":158,"box":{"x":68,"y":150,"width":792,"height":11}},{"id":"27d387ca-9420-4ba8-8b1d-a800d4a5236f","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":158,"box":{"x":70,"y":166,"width":831,"height":11}},{"id":"956a9531-d5cc-4471-a1bd-99482f2e6c99","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":158,"box":{"x":69,"y":181,"width":807,"height":11}},{"id":"0001ef95-1535-4d6d-a546-bd7c0aad3169","block_type":"box","text":"easily accessible place.","page_number":158,"box":{"x":69,"y":196,"width":167,"height":11}},{"id":"df119e2b-886c-47bf-80db-2a2297ab0aef","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":158,"box":{"x":102,"y":218,"width":804,"height":12}},{"id":"225fc34f-83f9-4ffd-b4a7-71019089f29d","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":158,"box":{"x":70,"y":234,"width":542,"height":11}},{"id":"ab6410a2-fe92-41fc-80e4-d17e39dbb5ac","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":158,"box":{"x":102,"y":256,"width":734,"height":12}},{"id":"4449ead0-6e9f-4101-9132-5e1711303738","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":158,"box":{"x":70,"y":271,"width":814,"height":12}},{"id":"c9bd948c-eee8-45c8-b5ca-5a29c7b4ea87","block_type":"box","text":"fiscal year.","page_number":158,"box":{"x":68,"y":286,"width":75,"height":12}},{"id":"6c11c029-223e-4f74-88a9-db7d5b789205","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":158,"box":{"x":69,"y":317,"width":396,"height":11}},{"id":"d5fe2495-80f6-4421-8d13-e22efee9b847","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":158,"box":{"x":101,"y":339,"width":777,"height":12}},{"id":"1c7e289b-4ad6-4fec-90a2-b4b9516837b6","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":158,"box":{"x":70,"y":355,"width":835,"height":11}},{"id":"1bdb5385-1367-4de9-b86a-aeba1b1ccdb7","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":158,"box":{"x":68,"y":370,"width":822,"height":11}},{"id":"b9adf86f-26d9-41cb-8e28-aed469234dde","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":158,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"86fcebf6-08a1-4139-ba8d-c9e7b9077a07","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":158,"box":{"x":69,"y":400,"width":840,"height":11}},{"id":"55b1fe1b-dbdb-41b9-b22a-9d21a4e908e4","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":158,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"43543cf8-ac0b-4358-b555-2b68b5e0d015","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":158,"box":{"x":69,"y":430,"width":794,"height":11}},{"id":"78ada32b-ea53-4fcd-8934-4d612396d014","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":158,"box":{"x":69,"y":445,"width":839,"height":12}},{"id":"ec1c74a9-db4e-48ea-90ed-0be5f6ef9dce","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":158,"box":{"x":69,"y":460,"width":824,"height":12}},{"id":"989988ac-c974-4acb-b16c-ec745ad72287","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":158,"box":{"x":68,"y":475,"width":839,"height":12}},{"id":"1845ee35-a648-4366-8836-028418b11c18","block_type":"box","text":"and Class R Shares of your Fund.","page_number":158,"box":{"x":69,"y":491,"width":236,"height":11}},{"id":"7719a77e-7e9d-494b-baf4-f091aa8e2946","block_type":"box","text":"Other Payments by the Fund","page_number":158,"box":{"x":69,"y":521,"width":206,"height":11}},{"id":"39368c64-838e-4e97-934d-2b92d7ddbc3f","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":158,"box":{"x":102,"y":543,"width":800,"height":12}},{"id":"bb2f147e-031c-402d-a3cf-f2750f03d4ad","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":158,"box":{"x":68,"y":559,"width":816,"height":11}},{"id":"b3b2179d-7784-4acb-8ba8-01f02728c75a","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":158,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"98773e84-334e-477e-a3c0-45ddcffaa5b2","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":158,"box":{"x":69,"y":589,"width":792,"height":11}},{"id":"06366414-ace4-4e6d-86bc-78a4f081008f","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":158,"box":{"x":68,"y":604,"width":841,"height":11}},{"id":"e5980a22-e8f3-464d-98d9-d876f1b29165","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":158,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"0b0e9650-fd23-4abc-9402-0358af1ce39a","block_type":"box","text":"of these payments may be substantial.","page_number":158,"box":{"x":69,"y":634,"width":276,"height":11}},{"id":"29bc541f-9da5-4ab6-94d3-5f8b514c5788","block_type":"box","text":"Additional Payments by BlackRock","page_number":158,"box":{"x":68,"y":665,"width":256,"height":11}},{"id":"cd836d86-cec7-40ab-b0ce-380f1e2f74fd","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":158,"box":{"x":102,"y":687,"width":803,"height":11}},{"id":"40dcb8b4-03c0-423d-a046-eae5ea641fe8","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":158,"box":{"x":69,"y":702,"width":823,"height":12}},{"id":"6a539412-ae16-49f3-9291-0e86c9d44bae","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":158,"box":{"x":70,"y":717,"width":768,"height":12}},{"id":"d812f5e7-196c-49cf-8304-a75cabbf5012","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":158,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"4acfcea0-1e01-4aa8-a852-727e2fcc5e9a","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":158,"box":{"x":69,"y":748,"width":599,"height":11}},{"id":"4987472a-04c4-49f2-a48a-295aed30e3e7","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":158,"box":{"x":101,"y":770,"width":776,"height":11}},{"id":"dff168ae-4f09-49a5-b05c-3da6c4d1313d","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":158,"box":{"x":70,"y":785,"width":832,"height":12}},{"id":"9e9f3d3b-a6b2-4827-ad68-8381747138fb","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":158,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"52b76cde-ea36-466e-b4ca-255e8f63e129","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":158,"box":{"x":69,"y":816,"width":802,"height":11}},{"id":"f5149e1b-3eb7-4528-a7b5-c16017990265","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":158,"box":{"x":69,"y":831,"width":802,"height":11}},{"id":"0c43f844-0105-426f-b9b2-f3a35c2435e2","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":158,"box":{"x":70,"y":846,"width":796,"height":11}},{"id":"5e655075-7b26-451a-8636-7ef6d77370bd","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":158,"box":{"x":69,"y":861,"width":836,"height":11}},{"id":"b20b81f5-6f02-4015-8b35-878e1a1aa897","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":158,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"fde29f84-c4d0-4d67-ab91-45471e3fa3e5","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":158,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"b197a23b-2ffc-4c2b-a059-a36e36a7d7a9","block_type":"box","text":"II-111","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fb994fb1-efef-4998-85b3-6104a966c042","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f963b662-2d74-494c-8bca-6de1e4b087f0","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":159,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"9966d265-3c20-4221-98af-65a209c94705","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":159,"box":{"x":70,"y":60,"width":294,"height":11}},{"id":"33f65f3b-0819-46a5-8e36-f11423825989","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":159,"box":{"x":101,"y":82,"width":803,"height":12}},{"id":"7a4bb10d-394b-4deb-8f80-5816aa7b2e02","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":159,"box":{"x":69,"y":98,"width":792,"height":11}},{"id":"4c0d1e2f-750d-423c-a080-daeae3505042","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":159,"box":{"x":69,"y":113,"width":623,"height":11}},{"id":"705031c5-0665-4b16-875c-204366df3b7c","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":159,"box":{"x":102,"y":135,"width":765,"height":12}},{"id":"4f65b40a-b412-4cb2-a3c4-e116b7dd5b40","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":159,"box":{"x":69,"y":150,"width":841,"height":12}},{"id":"6f32cf1c-2397-4ffc-91fe-791b5f5cc770","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":159,"box":{"x":68,"y":166,"width":806,"height":11}},{"id":"a965263c-7009-46be-8828-d686cb956775","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":159,"box":{"x":69,"y":181,"width":776,"height":11}},{"id":"c9e4d22f-8b43-472e-8343-7327ddd0e46b","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":159,"box":{"x":70,"y":196,"width":802,"height":11}},{"id":"1c0dbeef-8bb8-41a8-abd1-9cf4f045aca0","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":159,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"80a472f7-5e3d-461a-aed3-cfe2e0f175ab","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":159,"box":{"x":69,"y":226,"width":538,"height":11}},{"id":"a9cb40ac-814c-4cee-bb24-7ed200c909e2","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":159,"box":{"x":101,"y":249,"width":795,"height":11}},{"id":"be111c85-9637-46ff-85cb-439d89a6c138","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":159,"box":{"x":69,"y":264,"width":807,"height":11}},{"id":"3a457844-747f-4888-8eb6-7c44da285f43","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":159,"box":{"x":69,"y":279,"width":823,"height":11}},{"id":"2ae62d1a-89d0-4db9-a80c-823ddf6cd3df","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":159,"box":{"x":68,"y":294,"width":819,"height":11}},{"id":"5f9c916e-dc0f-40ac-8995-1dc98649f53e","block_type":"box","text":"Funds.","page_number":159,"box":{"x":70,"y":309,"width":44,"height":9}},{"id":"d8dd44d2-2375-4f4e-9d4f-b4b026805654","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":159,"box":{"x":101,"y":332,"width":270,"height":11}},{"id":"21f371bc-2523-41e8-9e1e-5166901099ef","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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Conflicts","page_number":163,"box":{"x":102,"y":348,"width":78,"height":9}},{"id":"8c8cffed-5902-4845-9cd3-1d451b897d25","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":163,"box":{"x":101,"y":371,"width":710,"height":11}},{"id":"488d4b9e-c92c-4577-ac72-5163fb914cd8","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":163,"box":{"x":69,"y":386,"width":803,"height":11}},{"id":"49b280aa-0eb3-4c68-98d0-fb3bb8ae8a30","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":163,"box":{"x":69,"y":401,"width":788,"height":11}},{"id":"48813cae-e67d-4646-a64b-1ad10b916fa7","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":163,"box":{"x":68,"y":416,"width":819,"height":12}},{"id":"f947dce2-69ca-4f0a-9f72-4ad34fe109a4","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":163,"box":{"x":68,"y":432,"width":473,"height":11}},{"id":"961e2591-7060-41f8-a3ae-872f728e609b","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":163,"box":{"x":102,"y":454,"width":793,"height":11}},{"id":"0181e826-69d4-4b36-bd9a-cccd30daf8b4","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":163,"box":{"x":69,"y":469,"width":835,"height":11}},{"id":"04c3a689-d5d9-4c92-9663-6a9ad17cebdd","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":163,"box":{"x":68,"y":484,"width":833,"height":12}},{"id":"65789e0b-57d5-4565-a0c7-b9b4c620ad03","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":163,"box":{"x":70,"y":499,"width":830,"height":12}},{"id":"1f39a1b0-aac4-4877-94e2-94fbc7fd3e02","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":163,"box":{"x":102,"y":522,"width":774,"height":11}},{"id":"792d897b-1418-4ebf-9efa-d3be4c38254d","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":163,"box":{"x":69,"y":537,"width":794,"height":12}},{"id":"3e40d7e1-8f73-4d97-a181-07fe85db46ff","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":163,"box":{"x":70,"y":552,"width":818,"height":11}},{"id":"0fdf7a7a-1073-4fef-8dca-a173e49cf072","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":163,"box":{"x":69,"y":568,"width":836,"height":11}},{"id":"94950d0d-552b-4705-ab47-bfc1b998d490","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":163,"box":{"x":69,"y":583,"width":723,"height":11}},{"id":"2e6411fa-872c-4292-bf69-25856325589d","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":163,"box":{"x":102,"y":605,"width":759,"height":12}},{"id":"de0feddf-a720-41ce-82eb-3f2bb2deccc4","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":163,"box":{"x":69,"y":620,"width":760,"height":12}},{"id":"7846f62a-a2b1-424e-a670-27eb67c0b62d","block_type":"box","text":"appropriate.","page_number":163,"box":{"x":69,"y":636,"width":84,"height":10}},{"id":"6c6201ae-8ec0-43f6-9878-f89ed08ca939","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":163,"box":{"x":160,"y":636,"width":738,"height":11}},{"id":"c8b0a0c4-7089-4cb0-8f4e-efb77b0d9faf","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":163,"box":{"x":69,"y":651,"width":795,"height":11}},{"id":"790e08bb-c9e9-4c94-a94c-307426d25959","block_type":"box","text":"described above.","page_number":163,"box":{"x":69,"y":666,"width":122,"height":9}},{"id":"777a79de-df50-436b-bfc3-6e7aae51ea0a","block_type":"box","text":"REDEMPTION OF SHARES","page_number":163,"box":{"x":385,"y":695,"width":208,"height":10}},{"id":"49bdf6f0-8c3a-48ba-8ff2-d1b7ac1aef90","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":163,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"6d67e8c6-f9a0-4cee-89a2-5f0ac89c0712","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":163,"box":{"x":68,"y":733,"width":836,"height":11}},{"id":"d5fd7d7f-8edb-4e93-8501-5623443da531","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":163,"box":{"x":69,"y":748,"width":840,"height":12}},{"id":"7aad3a95-20a9-4716-b629-7ed659115950","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":163,"box":{"x":70,"y":763,"width":814,"height":12}},{"id":"2b079bad-d86d-4730-8229-69714cdfb214","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":163,"box":{"x":68,"y":778,"width":809,"height":12}},{"id":"905e74d6-ecda-47d3-a207-3f00be49f4c0","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":163,"box":{"x":69,"y":794,"width":827,"height":11}},{"id":"259c397d-5b0d-417f-b0a1-5e7a57d7ec7f","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":163,"box":{"x":69,"y":809,"width":839,"height":11}},{"id":"d5aa715a-c9e6-4685-a585-c32acdffd09e","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":163,"box":{"x":70,"y":824,"width":797,"height":11}},{"id":"ad35c61f-bccc-449a-9801-75eaba69fecc","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":163,"box":{"x":69,"y":838,"width":833,"height":12}},{"id":"992ea580-505f-48a9-9860-29d835372f3d","block_type":"box","text":"for any shareholder of the Fund.","page_number":163,"box":{"x":68,"y":854,"width":227,"height":11}},{"id":"ebfb79b8-1115-4395-8b46-815cc9763733","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":163,"box":{"x":101,"y":877,"width":722,"height":11}},{"id":"936c0786-16e2-488a-832d-3178d9c3726f","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":163,"box":{"x":69,"y":892,"width":818,"height":11}},{"id":"e7e66798-fbde-4dcf-8e3d-9d6898e03b11","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":163,"box":{"x":68,"y":907,"width":821,"height":11}},{"id":"839425de-d20e-4d9d-b7cf-640761707bfe","block_type":"box","text":"II-116","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"44677aee-7c8f-4cb8-a1d3-0adf1360ced3","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e73ea1f2-da40-4f1c-8081-cc378a4431ab","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":164,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"b5da4fe0-8d37-4dd9-8928-a048b60cb6d5","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":164,"box":{"x":68,"y":60,"width":812,"height":11}},{"id":"2e76c869-dc4e-4242-bad2-3cc3fe83faa6","block_type":"box","text":"redemption.","page_number":164,"box":{"x":69,"y":75,"width":83,"height":11}},{"id":"b9474f66-fc5f-4d27-8b87-58bc4f7a73d5","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":164,"box":{"x":101,"y":98,"width":807,"height":11}},{"id":"53c19a63-eda0-4f80-a654-b1dadd2938e5","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":164,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"d7cd779c-95e7-4141-bcd4-a77215edcfd4","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":164,"box":{"x":68,"y":128,"width":811,"height":11}},{"id":"add7bb5f-dc2b-4909-b5d0-d02dfd4f9330","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":164,"box":{"x":69,"y":143,"width":741,"height":11}},{"id":"be40cf46-b79f-42dd-82fa-9c2a8744f3a4","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":164,"box":{"x":69,"y":158,"width":813,"height":11}},{"id":"0b02ed11-42f2-40ad-8ad2-7e2717f32606","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":164,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"a04b65bd-ac29-4247-9d6d-f42b8d5819b1","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":164,"box":{"x":69,"y":188,"width":685,"height":12}},{"id":"0c6c0949-71f0-4bd8-89e5-b85bcc8aede7","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":164,"box":{"x":102,"y":211,"width":798,"height":11}},{"id":"2aad5c75-4dbe-43ad-8f58-564062bd5c93","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":164,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"c29facdd-df24-4470-9450-3f903748bbeb","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":164,"box":{"x":69,"y":241,"width":653,"height":11}},{"id":"0da1f08a-5b72-4641-9307-427a6df6b037","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":164,"box":{"x":102,"y":264,"width":803,"height":11}},{"id":"94d14302-8eef-423f-b4c9-ee55ee8ca30a","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":164,"box":{"x":69,"y":279,"width":827,"height":11}},{"id":"8bd3ecc6-f05d-44ae-bb21-0c544b30ebfc","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":164,"box":{"x":68,"y":294,"width":824,"height":11}},{"id":"2c754404-19c3-4302-b93c-9da1d125519b","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":164,"box":{"x":70,"y":309,"width":825,"height":11}},{"id":"5d104388-5e58-4579-951a-934121d78e56","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":164,"box":{"x":69,"y":324,"width":825,"height":11}},{"id":"c0cc9417-1a25-444b-982a-8d08f19785dc","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":164,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"209752e0-2195-4e32-b20b-89823a081623","block_type":"box","text":"Redemption","page_number":164,"box":{"x":69,"y":370,"width":86,"height":11}},{"id":"ad1ca6c1-1585-41f4-813f-4027ebfd62e9","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":164,"box":{"x":70,"y":392,"width":481,"height":11}},{"id":"0006f125-77ee-4898-bdab-f03f0288717b","block_type":"box","text":"Redeem by Telephone:","page_number":164,"box":{"x":102,"y":415,"width":162,"height":11}},{"id":"e7978095-cfa6-4f52-9d51-fc56a53f78c9","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":164,"box":{"x":270,"y":415,"width":571,"height":11}},{"id":"a3f8af71-e40e-4413-baed-4fbe023654ef","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":164,"box":{"x":68,"y":429,"width":829,"height":12}},{"id":"61c31666-6938-44b2-9774-239f8e5a391a","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":164,"box":{"x":69,"y":445,"width":798,"height":12}},{"id":"8a5e34fb-c15a-4323-94c3-1ddf3daf8e4c","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":164,"box":{"x":69,"y":460,"width":838,"height":11}},{"id":"425c8136-fb2f-46e2-80ce-feda728c0f89","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":164,"box":{"x":68,"y":475,"width":831,"height":12}},{"id":"000c8376-a44d-4dd0-be13-81994cdbb91d","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":164,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"3d038b27-9d73-4b26-9156-35cedd9e8d00","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":164,"box":{"x":70,"y":506,"width":791,"height":11}},{"id":"20188c53-b450-4bdc-bf94-cc5c69d8316d","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":164,"box":{"x":68,"y":521,"width":818,"height":11}},{"id":"fb43af78-7fb9-4fc2-b3cf-afb7fe504a79","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":164,"box":{"x":69,"y":536,"width":829,"height":11}},{"id":"0263a262-ca0d-4eff-8eb8-2bbb89caa3a4","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":164,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"63447ec3-4b84-40fe-b0ab-318c12a0f4e6","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":164,"box":{"x":69,"y":566,"width":834,"height":11}},{"id":"2be06d5e-4503-48e0-9b90-2e0af26f2fe5","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":164,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"4495068b-ef3f-47f9-be4b-db463a884cb9","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":164,"box":{"x":68,"y":596,"width":840,"height":12}},{"id":"793b6f0d-44b5-46a6-9b65-af322fa11eb5","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":164,"box":{"x":68,"y":612,"width":835,"height":11}},{"id":"e0befe2c-21d5-42a4-9762-a0309a829258","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":164,"box":{"x":69,"y":627,"width":828,"height":11}},{"id":"c1273f1d-b685-4bb4-97f1-749d441e816e","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":164,"box":{"x":69,"y":642,"width":835,"height":11}},{"id":"655d4d7e-7a03-4ad7-a9a9-0b7c25b8c3dc","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":164,"box":{"x":70,"y":657,"width":603,"height":11}},{"id":"aea7da27-c8fe-4408-b95c-f9d3832a496c","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":164,"box":{"x":102,"y":680,"width":774,"height":11}},{"id":"99bee60e-0969-4dc0-899c-6240a475319f","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":164,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"dc11f582-64ef-452e-b070-15c5a096dcd9","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":164,"box":{"x":70,"y":710,"width":821,"height":11}},{"id":"8a7df0f2-e8e6-4158-a365-a372711be31c","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":164,"box":{"x":68,"y":725,"width":823,"height":11}},{"id":"7a1c5d89-f51f-444f-acfe-c3efca4633d8","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":164,"box":{"x":69,"y":740,"width":823,"height":11}},{"id":"f154e937-c713-4729-ac2f-d52f57743b97","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":164,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"1608cc78-79fe-4665-9e35-9641369dc881","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":164,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"468d40e0-b6a3-4d57-932f-c42a46f64737","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":164,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"dc9c5a03-f764-4e8d-8dcf-32e6737799c6","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":164,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"fd23a207-9ec0-4bda-ba87-fbd66ff39ab7","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":164,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"ccea2ee3-5112-4db3-9988-a5dd4adc006c","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":164,"box":{"x":69,"y":831,"width":782,"height":11}},{"id":"e2936843-95dd-4777-b1fa-7903ac7c2d8f","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":164,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"55ebd0a7-bbbd-4d1f-bbb0-3fafc8faf109","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":164,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"03fc4cd0-43f8-4616-8471-dcb81e959db4","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":164,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"b2ec8d82-ceed-4b3e-bbb0-83c9f4229e88","block_type":"box","text":"II-117","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2ece2266-530b-4fc0-9766-37e214901b9c","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fc48f730-d86f-44b6-b411-98917b09b1cc","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":165,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"691bdee6-9021-427e-9c42-a0432e2e6d52","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":165,"box":{"x":70,"y":60,"width":823,"height":11}},{"id":"81bcc743-4e54-4573-944e-07a986aec506","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":165,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"405148af-f9a5-4038-8eb1-0a810d2d6849","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":165,"box":{"x":68,"y":90,"width":826,"height":11}},{"id":"5bb99d25-dfdc-4c27-86f4-9ba8a6b9103b","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":165,"box":{"x":68,"y":105,"width":817,"height":11}},{"id":"9d241043-8fec-4acf-b82e-b5bd1b5e1a4b","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":165,"box":{"x":70,"y":120,"width":648,"height":11}},{"id":"33e5c9a1-0a4f-41b1-9196-7b5a4d755b2f","block_type":"box","text":"Redeem by VRU:","page_number":165,"box":{"x":102,"y":143,"width":120,"height":11}},{"id":"3c3270bf-29f2-4cf1-b6e7-fb9daf3737e0","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":165,"box":{"x":229,"y":143,"width":667,"height":11}},{"id":"db1b9480-5f60-4a82-a13f-0c26ee231329","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":165,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"4ff48d99-25cf-4b4d-9f2d-6611a501019a","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":165,"box":{"x":68,"y":172,"width":644,"height":12}},{"id":"527b136d-195c-457d-b028-50219a55fd9a","block_type":"box","text":"Redeem by Internet:","page_number":165,"box":{"x":102,"y":196,"width":147,"height":11}},{"id":"392af6e0-b451-4929-9e51-7af3ad59a80d","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":165,"box":{"x":255,"y":196,"width":637,"height":11}},{"id":"07b0b0a5-0e6f-4039-8962-7e05ae2ec35a","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":165,"box":{"x":70,"y":211,"width":836,"height":11}},{"id":"a478c1d0-042f-4e9f-a79c-a7c525039c29","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":165,"box":{"x":68,"y":226,"width":823,"height":11}},{"id":"402bb6d0-d0be-4e23-a8ae-245c7519679d","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":165,"box":{"x":68,"y":241,"width":789,"height":11}},{"id":"9c526191-dbbb-4974-b430-dab92bb2c13d","block_type":"box","text":"institutional investors.","page_number":165,"box":{"x":70,"y":257,"width":155,"height":8}},{"id":"2ad00767-eecd-43ba-a665-b4023cb33180","block_type":"box","text":"Redeem in Writing:","page_number":165,"box":{"x":102,"y":279,"width":137,"height":11}},{"id":"be66c2ae-597b-434a-bc9f-79399b500a01","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":165,"box":{"x":247,"y":279,"width":639,"height":11}},{"id":"566afa9c-b847-48f0-a2a0-467347241684","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":165,"box":{"x":68,"y":294,"width":831,"height":11}},{"id":"2ba929fc-d1e6-4f26-9e51-e9c3b15e09fd","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":165,"box":{"x":68,"y":309,"width":745,"height":11}},{"id":"6ff54368-87ae-45e2-ba90-73df3e35a3e0","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":165,"box":{"x":69,"y":324,"width":764,"height":11}},{"id":"cceb912e-ef0b-403a-82e6-6da79a988ff7","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":165,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"7fe13754-9d63-4907-b38f-986676ae7905","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":165,"box":{"x":68,"y":355,"width":794,"height":11}},{"id":"dadcd358-5197-4ca2-8452-f7a3b561912d","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":165,"box":{"x":68,"y":370,"width":782,"height":11}},{"id":"7e9023ba-a336-4d16-b84a-945085afcf5a","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":165,"box":{"x":69,"y":385,"width":817,"height":11}},{"id":"a2913525-0591-42c0-af33-d28ff880beac","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":165,"box":{"x":69,"y":400,"width":836,"height":11}},{"id":"cddebcc7-286f-45a7-b1c3-a32d68a5c836","block_type":"box","text":"or wire to the bank account of record.","page_number":165,"box":{"x":69,"y":415,"width":266,"height":9}},{"id":"732d50c6-4af9-4fa2-b74c-9c6fd1de1e8e","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":165,"box":{"x":102,"y":438,"width":802,"height":11}},{"id":"c09d4f08-fa0b-4320-8562-a2a4d8b7c7d3","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":165,"box":{"x":69,"y":453,"width":489,"height":11}},{"id":"6317550c-709e-47bb-862c-fe1cdb3f62e9","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":165,"box":{"x":101,"y":475,"width":668,"height":12}},{"id":"da64f138-4e3d-4356-bb92-e2cab630cdac","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":165,"box":{"x":102,"y":498,"width":800,"height":11}},{"id":"7c597675-fe83-464b-9703-0a07311deaec","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":165,"box":{"x":69,"y":513,"width":838,"height":12}},{"id":"5a05e2f9-07ec-4a8c-9289-d91705980c73","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":165,"box":{"x":69,"y":528,"width":811,"height":11}},{"id":"344b496c-348b-4a5f-975f-89a3628e2fc6","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":165,"box":{"x":69,"y":543,"width":789,"height":12}},{"id":"0d55e6e9-2261-4772-914c-fbdaf4ea0f97","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":165,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"25020b45-27c3-4fbb-b5cf-6eecb738acee","block_type":"box","text":"redeemed by the Fund.","page_number":165,"box":{"x":69,"y":574,"width":162,"height":11}},{"id":"29038d9f-5a01-46a1-a670-5aedc9ce8a4a","block_type":"box","text":"Note on Low Balance Accounts.","page_number":165,"box":{"x":102,"y":597,"width":223,"height":8}},{"id":"93acc243-3797-41da-953a-e74d9393d550","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":165,"box":{"x":332,"y":596,"width":503,"height":12}},{"id":"dfcd4da1-77d9-49d6-a2e6-6c223e22b679","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":165,"box":{"x":70,"y":611,"width":752,"height":12}},{"id":"c717a6bd-9d31-46db-a1e1-7229f6fbad65","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":165,"box":{"x":70,"y":626,"width":829,"height":12}},{"id":"961db54b-9fed-4cad-8f27-f9af2fc6f25e","block_type":"box","text":"for any reason, including market fluctuation.","page_number":165,"box":{"x":68,"y":642,"width":313,"height":11}},{"id":"1a124ed6-d2e6-44b9-b9e2-3457471c9a80","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":165,"box":{"x":101,"y":664,"width":775,"height":12}},{"id":"038df9e2-ca4f-4156-a905-b2e3eb40b713","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":165,"box":{"x":70,"y":680,"width":773,"height":11}},{"id":"be742775-4c19-4746-a2f8-45749c9cccf4","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":165,"box":{"x":70,"y":694,"width":776,"height":12}},{"id":"1da8532c-7352-4c29-80d3-aa3f17665277","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":165,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"3acb0338-1cf7-49c1-9a7d-b4e67e0ccc2c","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":165,"box":{"x":69,"y":725,"width":811,"height":11}},{"id":"9ba8da22-01de-4788-b044-921ebe785e90","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":165,"box":{"x":69,"y":740,"width":435,"height":11}},{"id":"01e44858-9127-4620-8b54-af11f6e41003","block_type":"box","text":"Redemptions in Kind:","page_number":165,"box":{"x":102,"y":763,"width":153,"height":11}},{"id":"98df6047-351c-4b48-bf15-896b0a0ee42f","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":165,"box":{"x":263,"y":763,"width":624,"height":11}},{"id":"c6024372-aa3c-48d5-882d-01ac590a1664","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":165,"box":{"x":68,"y":778,"width":833,"height":11}},{"id":"60f9e7c1-27d1-47af-9e54-0509fa733ad6","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":165,"box":{"x":70,"y":792,"width":825,"height":12}},{"id":"1018f1c5-acd4-4b4f-9eb6-df12f750788a","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":165,"box":{"x":69,"y":808,"width":811,"height":11}},{"id":"efa9edde-b7ee-4591-bdc0-c6d6af3f111e","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":165,"box":{"x":69,"y":823,"width":672,"height":11}},{"id":"783a6e71-425d-4226-ad75-0bc52290ce2f","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":165,"box":{"x":101,"y":846,"width":787,"height":11}},{"id":"1743c678-c6bc-4ee2-b939-3fc6fc0d7279","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":165,"box":{"x":69,"y":861,"width":812,"height":11}},{"id":"1bc2c812-79e0-4182-bb10-7030639fc733","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":165,"box":{"x":68,"y":876,"width":822,"height":11}},{"id":"3a6ade7c-cff5-4a7d-833c-c350461db15d","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":165,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"428d2dca-b8c9-40a5-9392-7819e9813727","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":165,"box":{"x":69,"y":906,"width":838,"height":12}},{"id":"2d70a7c1-c3c5-47dc-bfc1-c084c0ec55e8","block_type":"box","text":"II-118","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7d808edf-82d3-40b1-ba6b-c0e2bdd01abe","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1aa9d7d4-8532-43f3-98a3-8455e897a151","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":166,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"958d3e66-3e18-441c-a250-4fea53cb8818","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":166,"box":{"x":70,"y":60,"width":801,"height":11}},{"id":"434011ea-95e7-40b2-bffb-515825c2e1b8","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":166,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"f1170e09-c5eb-4c9f-a8c1-612b7511bf09","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":166,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"66bf8776-d195-4840-b45e-4a6cb7bf832e","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":166,"box":{"x":69,"y":105,"width":594,"height":11}},{"id":"55a99f65-6a85-42e3-9cbc-1747d0707398","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":166,"box":{"x":101,"y":128,"width":795,"height":11}},{"id":"d6cf15ad-175c-4be0-8b41-e0a0d536de21","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":166,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"3c4fdc19-f288-418c-8ba7-0a6642325b6c","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":166,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"5c188ea6-1521-4e6b-a5ec-8206177b0773","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":166,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"6d7e4b04-84d7-475a-bc5b-1e027b8959f1","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":166,"box":{"x":68,"y":188,"width":838,"height":12}},{"id":"38b1982c-fed8-4194-8ce0-c84814427a39","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":166,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"7b432c49-1b45-4346-ad30-dd6d3d1c9ca8","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":166,"box":{"x":69,"y":218,"width":802,"height":12}},{"id":"ab442ce2-6f4b-4dbf-859e-84c8e46ac059","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":166,"box":{"x":70,"y":234,"width":837,"height":11}},{"id":"37b7515a-2284-46f7-85c3-5387f1d39591","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":166,"box":{"x":69,"y":249,"width":598,"height":11}},{"id":"78efa2b8-7a40-4b38-9ad0-59fa531c2d5f","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":166,"box":{"x":102,"y":271,"width":756,"height":12}},{"id":"3328a8c7-9811-47b0-9af6-39ffed3f963f","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":166,"box":{"x":69,"y":286,"width":764,"height":12}},{"id":"6b04ca04-04cc-4609-82b6-d6ac31815b0d","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":166,"box":{"x":70,"y":302,"width":830,"height":11}},{"id":"21fc21df-a8b7-41f6-bc60-62c956707ea4","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":166,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"6dc0f6a3-d9a7-4864-990a-235afbf9e264","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":166,"box":{"x":68,"y":332,"width":837,"height":11}},{"id":"46acd2de-e20c-434a-8b3e-7f086a44dfb8","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":166,"box":{"x":68,"y":347,"width":784,"height":11}},{"id":"82a76b81-4236-491d-a21c-c0deb067a40b","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":166,"box":{"x":69,"y":362,"width":801,"height":11}},{"id":"140cdd97-d0f9-40d5-a338-b3083340de9f","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":166,"box":{"x":68,"y":377,"width":835,"height":12}},{"id":"99decae8-17f7-4569-810f-41ae92f35c96","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":166,"box":{"x":68,"y":392,"width":796,"height":12}},{"id":"df599748-6b96-4967-9c63-f903a60b8cd4","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":166,"box":{"x":70,"y":407,"width":816,"height":11}},{"id":"d9a8f920-7ddb-451e-9e5b-2fde87caeb12","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":166,"box":{"x":69,"y":423,"width":788,"height":11}},{"id":"6f3658af-823c-48a3-95e7-b764ea7c3866","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":166,"box":{"x":102,"y":445,"width":779,"height":12}},{"id":"da77dca4-204f-46e2-a8d1-f13ab8870d62","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":166,"box":{"x":69,"y":460,"width":823,"height":12}},{"id":"3b5b9366-c17d-4949-9d21-0d361a9652aa","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":166,"box":{"x":68,"y":475,"width":800,"height":12}},{"id":"924d725c-09df-407d-9759-3a508d668d3a","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":166,"box":{"x":69,"y":491,"width":826,"height":11}},{"id":"4ab9d7de-6c94-4a86-b77c-1d6bc8d45b69","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":166,"box":{"x":68,"y":506,"width":251,"height":11}},{"id":"4300e77b-7180-4cb8-9c3b-212677ad856e","block_type":"box","text":"Repurchase","page_number":166,"box":{"x":69,"y":536,"width":85,"height":11}},{"id":"ca2336ae-7faa-4d44-bd40-d80efab14335","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":166,"box":{"x":101,"y":559,"width":800,"height":11}},{"id":"75000817-d3e5-4956-94e6-2c31e744e6d3","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":166,"box":{"x":70,"y":574,"width":833,"height":11}},{"id":"4e1a7c84-d0f0-4eef-8f4e-94ad5d222759","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":166,"box":{"x":69,"y":589,"width":822,"height":11}},{"id":"e4fa667a-7305-436c-97a4-42e7b68ade73","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":166,"box":{"x":70,"y":604,"width":809,"height":11}},{"id":"e8a79166-974e-433e-98a2-5e075356aae0","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":166,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"e372fdeb-834a-4032-94eb-3c1e5352da37","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":166,"box":{"x":70,"y":634,"width":796,"height":11}},{"id":"dc0e7961-50d5-4d6f-93ed-37030848bdc2","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":166,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"af4f3fa6-fc77-4b73-8907-06c62d65362c","block_type":"box","text":"next business day.","page_number":166,"box":{"x":69,"y":665,"width":130,"height":11}},{"id":"294b0a96-b29a-4332-8a5c-eb5e766d29ef","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":166,"box":{"x":101,"y":687,"width":783,"height":11}},{"id":"b005b916-d526-4970-a2c7-9c126bd0a621","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":166,"box":{"x":69,"y":702,"width":813,"height":12}},{"id":"c1d805e3-ddbe-424b-aa76-85bfcaf08724","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":166,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"a9de6139-ec17-460b-8978-0c2bd3c1e15a","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":166,"box":{"x":70,"y":732,"width":814,"height":12}},{"id":"5ed88dd3-55aa-4475-b849-c7926c4f8d7c","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":166,"box":{"x":69,"y":748,"width":788,"height":11}},{"id":"1943a0ca-9fde-4d3e-a3b1-2aecd40b1770","block_type":"box","text":"redeem shares as set out above.","page_number":166,"box":{"x":69,"y":763,"width":235,"height":9}},{"id":"68fed787-d4af-4929-b8e5-7c7e02f0e47e","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":166,"box":{"x":69,"y":793,"width":440,"height":11}},{"id":"8f0e5f2a-adb3-452d-b9f0-7302b674962f","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":166,"box":{"x":102,"y":816,"width":791,"height":11}},{"id":"d34a3fdd-2d87-45ff-bd26-a14d27f9d5f0","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":166,"box":{"x":69,"y":831,"width":815,"height":11}},{"id":"da68657c-f464-4cb4-a7c3-57b8a8888243","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":166,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"0b84210a-606e-450c-8c0c-ea54e8e7e77e","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":166,"box":{"x":68,"y":861,"width":806,"height":11}},{"id":"94d82333-ac17-4a8a-8f57-fdb3a362d2fd","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":166,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"bce0a2a5-b1f4-4005-9f2d-314bb54e367b","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":166,"box":{"x":70,"y":891,"width":827,"height":12}},{"id":"c7c212c6-e86f-49d8-ae84-fd3c262a6637","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":166,"box":{"x":68,"y":906,"width":809,"height":12}},{"id":"05d693d9-1ff5-4e27-8870-bec4b2b8f09d","block_type":"box","text":"II-119","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"08fa40d2-7676-4305-8e84-4f9d9e75e656","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24353a0b-7d05-4e2f-abf1-d7c1632d16de","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":167,"box":{"x":69,"y":45,"width":764,"height":11}},{"id":"724b1d9c-aaa0-4ebc-a183-f5d34e91b1c0","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":167,"box":{"x":69,"y":60,"width":400,"height":11}},{"id":"c1cf3f08-442b-4d9a-a62c-7836b9b8ddb8","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":167,"box":{"x":384,"y":89,"width":210,"height":10}},{"id":"31358214-18a6-4b45-b089-5ebcf6a98135","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":167,"box":{"x":102,"y":112,"width":747,"height":11}},{"id":"f807349f-8f74-4c83-b21e-6b363ea0c473","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":167,"box":{"x":70,"y":127,"width":781,"height":11}},{"id":"db494bd1-4908-4cc2-9d83-f802e426df20","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":167,"box":{"x":68,"y":142,"width":836,"height":12}},{"id":"5c6c2b52-1189-449d-b34f-d973fbb0b604","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":167,"box":{"x":69,"y":157,"width":641,"height":12}},{"id":"f063b5ce-de61-46a5-89bb-63f19140bc69","block_type":"box","text":"Investment Account","page_number":167,"box":{"x":69,"y":188,"width":146,"height":9}},{"id":"49008fac-6d3f-4df6-b77d-bd881bd14f3e","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":167,"box":{"x":102,"y":210,"width":774,"height":12}},{"id":"fd138d92-c746-4da9-8bf5-7f7b83925a72","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":167,"box":{"x":70,"y":225,"width":796,"height":12}},{"id":"5bb62226-7979-4450-8cba-ff7090e0eb67","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":167,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"c8790e5a-7c6c-4faf-bf63-3c47c79585ae","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":167,"box":{"x":68,"y":256,"width":830,"height":11}},{"id":"19fbb4a4-dad1-4ae4-bb2c-a204c71bfdb6","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":167,"box":{"x":69,"y":271,"width":829,"height":11}},{"id":"29a8482c-0d6e-408e-8819-3600b8afa7cc","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":167,"box":{"x":68,"y":286,"width":815,"height":11}},{"id":"829abfd6-faee-48ee-b1f1-cc79f6f07d6f","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":167,"box":{"x":70,"y":300,"width":781,"height":12}},{"id":"fcc86f23-9c8f-4db7-8e0f-5d75809d9310","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":167,"box":{"x":69,"y":316,"width":825,"height":11}},{"id":"0470fc4a-29ee-40dd-8511-ad2ed9139679","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":167,"box":{"x":69,"y":331,"width":785,"height":11}},{"id":"901d3bf6-8ea8-4899-8327-27d141768a3d","block_type":"box","text":"automatically at the Transfer Agent.","page_number":167,"box":{"x":69,"y":346,"width":251,"height":12}},{"id":"22701e9c-01c5-43b7-838c-93101e7f43ea","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":167,"box":{"x":101,"y":369,"width":750,"height":11}},{"id":"3a44c81d-9d34-4884-aadc-1ee07595d05c","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":167,"box":{"x":69,"y":384,"width":797,"height":11}},{"id":"c6b2569f-439c-4a8f-b0bd-3873ea41b6a0","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":167,"box":{"x":69,"y":399,"width":797,"height":12}},{"id":"011bd752-beb6-4d05-a20f-3cf5154db8e9","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":167,"box":{"x":69,"y":414,"width":826,"height":12}},{"id":"359164e1-dc59-4943-b386-e15e29db5ab9","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":167,"box":{"x":68,"y":430,"width":792,"height":11}},{"id":"a8bc7eae-8b81-4339-bbf5-0d57a1c610b5","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":167,"box":{"x":69,"y":445,"width":824,"height":11}},{"id":"a9df1e22-c864-4d4a-a5d0-eb07da86d61e","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":167,"box":{"x":69,"y":460,"width":820,"height":11}},{"id":"2cfe1177-f9a8-41d9-a2bd-b0f5d612dfe5","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":167,"box":{"x":68,"y":475,"width":833,"height":11}},{"id":"cd25f0be-f6c3-4c41-af9f-f5716a441123","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":167,"box":{"x":68,"y":490,"width":795,"height":11}},{"id":"0b9f267a-287c-4de5-ba88-5ee42d41248d","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":167,"box":{"x":70,"y":505,"width":822,"height":11}},{"id":"2e3b417f-f279-4eeb-80a9-3671daeedbb5","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":167,"box":{"x":69,"y":520,"width":814,"height":12}},{"id":"d9804844-8bb7-4c9b-9dc3-b1fa523a0111","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":167,"box":{"x":68,"y":535,"width":822,"height":12}},{"id":"2143bbbc-a9c4-4557-9014-ec6cd5b4dae7","block_type":"box","text":"issued.","page_number":167,"box":{"x":70,"y":551,"width":49,"height":8}},{"id":"5f73d5b0-12f1-4b4a-8490-174b57181d45","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":167,"box":{"x":102,"y":573,"width":785,"height":11}},{"id":"826145ae-cfb6-4a7c-ad3b-1b0c02a95bf5","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":167,"box":{"x":68,"y":588,"width":830,"height":11}},{"id":"4d4da5c9-63b0-4114-8250-7503524dda6a","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":167,"box":{"x":68,"y":603,"width":790,"height":12}},{"id":"7c96cc66-3ecc-41c2-bacc-83ea317720c3","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":167,"box":{"x":69,"y":618,"width":831,"height":12}},{"id":"3d96d033-67fd-4d19-aeee-2649355519be","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":167,"box":{"x":68,"y":634,"width":652,"height":11}},{"id":"bc2d9940-4716-4d7c-ad26-723c2a8fe52a","block_type":"box","text":"Exchange Privilege","page_number":167,"box":{"x":69,"y":664,"width":138,"height":11}},{"id":"2f9a3248-a62d-402f-9da8-399c65f23f0d","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":167,"box":{"x":102,"y":686,"width":797,"height":11}},{"id":"e7b8e807-3dc9-464e-b000-0e918ef073b8","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":167,"box":{"x":69,"y":702,"width":832,"height":11}},{"id":"79c63841-0bb8-402a-be24-e6afa605ebd7","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":167,"box":{"x":68,"y":716,"width":788,"height":12}},{"id":"86bdcdb1-faf8-43f4-b3d8-34b1b010666d","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":167,"box":{"x":69,"y":731,"width":796,"height":12}},{"id":"50ea2c46-42a3-48b1-9f4a-d9b64363ff6d","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":167,"box":{"x":69,"y":747,"width":824,"height":11}},{"id":"ec63933e-b250-4eb1-9080-b6c92aa9623f","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":167,"box":{"x":69,"y":762,"width":835,"height":11}},{"id":"70a3d323-fd72-42e2-989c-8f6088dbf85c","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":167,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"eb705c7e-221b-4096-b3ae-7aa0f8fbaf8d","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":167,"box":{"x":69,"y":792,"width":600,"height":11}},{"id":"43ec4065-375c-4365-9969-f88568712120","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":167,"box":{"x":102,"y":815,"width":667,"height":11}},{"id":"de0da3d2-c9d2-4656-978e-a39c1f094c3d","block_type":"box","text":"Institutional","page_number":167,"box":{"x":776,"y":815,"width":81,"height":9}},{"id":"881b262a-0a9e-45d7-bccb-23a44336851e","block_type":"box","text":"Shares are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are","page_number":167,"box":{"x":69,"y":830,"width":746,"height":11}},{"id":"3c486ae7-1e04-42d9-ba63-224601298a70","block_type":"box","text":"exchangeable for Investor A Shares of other Funds to the extent such shares are offered by your financial","page_number":167,"box":{"x":69,"y":845,"width":750,"height":12}},{"id":"5f2e368a-7bc8-43eb-87c3-972af3b73467","block_type":"box","text":"intermediary. Investor P Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are","page_number":167,"box":{"x":70,"y":860,"width":836,"height":12}},{"id":"1c74798a-7653-4904-aef5-18d1dcf1435a","block_type":"box","text":"offered by your financial intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G","page_number":167,"box":{"x":69,"y":875,"width":825,"height":12}},{"id":"11bd42b7-d9aa-4593-9119-1960bde7d1bf","block_type":"box","text":"Shares are exchangeable for Class G Shares of other Funds.","page_number":167,"box":{"x":69,"y":891,"width":431,"height":11}},{"id":"6e2b3281-3a60-4e05-b965-5b93e96c9062","block_type":"box","text":"II-120","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"41432f67-0d99-484b-ac0a-61df71c4b68f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20c3c3c7-5f3e-4914-aa58-908acad6e928","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":168,"box":{"x":102,"y":45,"width":800,"height":11}},{"id":"425050dd-e457-416b-9879-e761b0a83390","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":168,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"46079cad-55b2-486a-8274-8adb9a117edd","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":168,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"12daf959-9063-469a-9e4b-f3b1308cd997","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":168,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"8a44eb4f-80e5-487f-9712-50a50709c9a2","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":168,"box":{"x":70,"y":105,"width":814,"height":11}},{"id":"38e4df6d-3d46-4900-adaa-acddebbb7cf8","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":168,"box":{"x":69,"y":120,"width":796,"height":12}},{"id":"0966e409-2fb1-4216-819a-e68165839d70","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":168,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"edab7aab-acbe-4423-b45e-f424f815705f","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":168,"box":{"x":69,"y":150,"width":561,"height":11}},{"id":"416cbd10-4807-4054-a7f2-712db9172e12","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":168,"box":{"x":102,"y":173,"width":236,"height":11}},{"id":"0c398de4-8ec1-4424-b5a1-5178b14e5c01","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding","page_number":168,"box":{"x":344,"y":173,"width":470,"height":11}},{"id":"0637dce1-2167-491c-a00b-2aa883731626","block_type":"box","text":"(“outstanding Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new","page_number":168,"box":{"x":69,"y":188,"width":765,"height":12}},{"id":"50b25b5c-7ca7-4a16-93e6-8389c97bd7fd","block_type":"box","text":"Investor C Shares”) or for shares of a money market fund (“new money market fund Shares”) on the basis of relative","page_number":168,"box":{"x":70,"y":203,"width":833,"height":12}},{"id":"bf39d753-7d2d-4b9a-b0ed-8f0ab3de7641","block_type":"box","text":"NAV per share, without the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of","page_number":168,"box":{"x":70,"y":218,"width":825,"height":12}},{"id":"593202ff-e082-4e8d-9ddd-2b0e34cef3ce","block_type":"box","text":"computing the CDSC upon redemption of new Investor C Shares or new money market fund Shares, as applicable,","page_number":168,"box":{"x":69,"y":234,"width":814,"height":11}},{"id":"eddfbb33-5774-4b6d-8a9a-a032e5202fdd","block_type":"box","text":"the time you held both the exchanged Investor C Shares and the new Investor C Shares or new money market fund","page_number":168,"box":{"x":68,"y":249,"width":818,"height":11}},{"id":"767464aa-1615-46d5-8924-8554f7cabaac","block_type":"box","text":"Shares will count towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":168,"box":{"x":69,"y":264,"width":780,"height":11}},{"id":"6069fb87-425b-4777-9552-19c9c1ecca3e","block_type":"box","text":"Exchanges of Service Shares.","page_number":168,"box":{"x":102,"y":287,"width":216,"height":11}},{"id":"27ecc86b-b330-44d7-84a4-b8c7835ee3f9","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered","page_number":168,"box":{"x":324,"y":286,"width":565,"height":12}},{"id":"1a5f5b8a-3b7e-49d0-9c8f-04837bb7269f","block_type":"box","text":"by selected dealer agreements with the Distributor.","page_number":168,"box":{"x":69,"y":302,"width":362,"height":11}},{"id":"ebc98cbb-10b7-4fa3-8263-2519079b9336","block_type":"box","text":"Exchanges for Shares of a Money Market Fund","page_number":168,"box":{"x":102,"y":324,"width":343,"height":11}},{"id":"aa84a682-1a86-4be7-bc40-2c1c9e4c976f","block_type":"box","text":".","page_number":168,"box":{"x":445,"y":332,"width":2,"height":1}},{"id":"d6061b8b-5906-4b98-bece-cf9735ee3617","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":168,"box":{"x":453,"y":324,"width":455,"height":12}},{"id":"88924cdc-3d19-4f12-a9ae-1b83e52ef374","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":168,"box":{"x":70,"y":339,"width":788,"height":12}},{"id":"c3a83466-f02b-4f02-9b6d-14cbfc13717b","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":168,"box":{"x":70,"y":355,"width":793,"height":11}},{"id":"fa1c7e50-5151-49a7-87fa-ee714f677364","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":168,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"ea801086-5af9-4db0-9930-b06d5705159b","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":168,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"579e2a3f-6363-4f52-b15e-cf7e6a0da0b5","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":168,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"a61f6233-2780-46b5-b32d-05935f837ff1","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":168,"box":{"x":69,"y":415,"width":827,"height":11}},{"id":"f56d157c-fce0-4117-aea6-c64283e3ba85","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":168,"box":{"x":69,"y":430,"width":758,"height":11}},{"id":"ffe1f6f3-16a7-4316-8fee-8c61e9bbb280","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":168,"box":{"x":69,"y":445,"width":822,"height":12}},{"id":"953678de-e70f-41dc-9feb-5b480128e414","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":168,"box":{"x":69,"y":460,"width":782,"height":12}},{"id":"3503a75a-8d12-46e8-a7a1-5c35e2e598ac","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":168,"box":{"x":70,"y":475,"width":814,"height":12}},{"id":"474d48e0-4af0-482f-876a-d22f956ce6e9","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":168,"box":{"x":69,"y":491,"width":830,"height":11}},{"id":"6e5ad3a3-f142-4f22-9f25-d8b6d79e306d","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":168,"box":{"x":69,"y":506,"width":821,"height":11}},{"id":"03fcaec2-5995-4406-a089-b81d15e83005","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":168,"box":{"x":69,"y":521,"width":823,"height":11}},{"id":"bbf1f3b1-2534-4b3e-b09f-dee99d91abf6","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":168,"box":{"x":70,"y":536,"width":781,"height":11}},{"id":"a2a95cf5-cd34-4018-8117-b7ea7fd72b37","block_type":"box","text":"exchange.","page_number":168,"box":{"x":69,"y":551,"width":70,"height":11}},{"id":"22c82b76-eaa2-4ecc-846d-75211b9d1852","block_type":"box","text":"Exchanges by Participants in Certain Programs.","page_number":168,"box":{"x":102,"y":574,"width":350,"height":11}},{"id":"5d9523aa-7337-4f16-8598-f4e5c0c07466","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":168,"box":{"x":458,"y":574,"width":448,"height":11}},{"id":"35203c71-44a1-4528-9fd5-3d9323bd7132","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":168,"box":{"x":70,"y":589,"width":828,"height":11}},{"id":"553f353f-7240-4976-b313-eb14dc3b85ba","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":168,"box":{"x":69,"y":604,"width":796,"height":11}},{"id":"7d4a91cd-083e-466f-b99f-069d71b801d7","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":168,"box":{"x":70,"y":619,"width":324,"height":11}},{"id":"e9ce6bdb-2275-4c84-b095-4c9b5bc5a754","block_type":"box","text":"Exercise of the Exchange Privilege","page_number":168,"box":{"x":102,"y":642,"width":254,"height":11}},{"id":"9799f496-4431-4c2d-a8b2-e7f66252a430","block_type":"box","text":".","page_number":168,"box":{"x":357,"y":649,"width":2,"height":2}},{"id":"b7bb4fdd-aecb-4a71-8f7b-50cfd573dc29","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":168,"box":{"x":365,"y":642,"width":543,"height":11}},{"id":"4fae8dfe-f05a-4e81-9743-6b4159e93681","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":168,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"541e478a-17f3-44e2-8315-bd8970608910","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":168,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"083609f8-9fd4-4909-a577-f60b2a265aae","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":168,"box":{"x":69,"y":687,"width":512,"height":11}},{"id":"791b2f63-d9b0-4fce-a0af-0f42cbcf8219","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":168,"box":{"x":101,"y":710,"width":772,"height":11}},{"id":"f9efcde6-08d6-41db-b375-15a0ece78fd0","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":168,"box":{"x":68,"y":725,"width":824,"height":11}},{"id":"99c2f2dc-9976-44a3-9977-69bf3dc98218","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":168,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"8c2b93e8-f8b8-4373-bc07-70d847a6c5a0","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":168,"box":{"x":68,"y":755,"width":817,"height":11}},{"id":"e8e1a4b2-3760-4e12-945d-02847a20e16e","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":168,"box":{"x":69,"y":770,"width":826,"height":12}},{"id":"40bf4323-f195-4021-a181-8cd2d9bbfcca","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":168,"box":{"x":69,"y":785,"width":840,"height":12}},{"id":"b6ab0657-d708-4573-84be-4122684afdba","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":168,"box":{"x":68,"y":801,"width":811,"height":11}},{"id":"2b930047-c79a-4b3d-be40-7087e66547ab","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":168,"box":{"x":68,"y":816,"width":815,"height":11}},{"id":"265a846c-62a6-4d6c-9307-6ebbc681e3fa","block_type":"box","text":"Transfer Agent in writing.","page_number":168,"box":{"x":68,"y":831,"width":175,"height":11}},{"id":"c7051e4e-223a-49b5-b211-211e578f18dc","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":168,"box":{"x":102,"y":853,"width":800,"height":12}},{"id":"551efce0-5282-4598-8d04-456a479b9d56","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":168,"box":{"x":69,"y":869,"width":828,"height":11}},{"id":"4551c5c6-ce4a-438c-b345-4040e6cb671d","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":168,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"2d0c464f-a84d-408b-ad25-998a593aeccd","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":168,"box":{"x":68,"y":899,"width":797,"height":11}},{"id":"07a507b9-fd67-45ec-b3d2-945d2875ec7e","block_type":"box","text":"II-121","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ef01bb1e-2ee6-4358-9c20-ffeaa62804a8","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce5ce899-bd11-42a0-ae0a-d4a21e186898","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":169,"box":{"x":68,"y":45,"width":763,"height":11}},{"id":"9ef0c7ba-6e28-41fe-8176-c6660bdc920d","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":169,"box":{"x":69,"y":60,"width":424,"height":11}},{"id":"7b9f24c8-cf96-46ac-b693-8da5bf84b62d","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":169,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"045dd9e8-d4dd-44dd-b3e2-938e4af2db48","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":169,"box":{"x":69,"y":98,"width":808,"height":11}},{"id":"c97f34b9-11f2-4bb8-af7d-9f7150cf4339","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":169,"box":{"x":69,"y":113,"width":771,"height":11}},{"id":"ed7ec61e-ce60-4d03-a389-470c3c8f8e8d","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":169,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"67eb5a8d-2b8e-4814-b94f-1c12db9a725b","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":169,"box":{"x":69,"y":143,"width":802,"height":11}},{"id":"cfb45ef4-21b3-4041-8e8b-21cf77b70319","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":169,"box":{"x":70,"y":158,"width":354,"height":11}},{"id":"37959dce-9cc7-40e2-b42b-692f10644b2b","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":169,"box":{"x":101,"y":181,"width":782,"height":11}},{"id":"da98eb8b-d0db-4cc8-a5c3-e33662282508","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":169,"box":{"x":68,"y":196,"width":800,"height":11}},{"id":"72bfd071-8be1-47d2-8262-066f22698817","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":169,"box":{"x":69,"y":211,"width":831,"height":11}},{"id":"7753f2e2-bf9d-41b7-9e79-57e0c716419a","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":169,"box":{"x":69,"y":226,"width":818,"height":11}},{"id":"79ee46f5-e4f2-4240-bfd2-fcad2478b8af","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":169,"box":{"x":69,"y":241,"width":506,"height":11}},{"id":"fdf86f05-9201-41b9-8c18-c267545e43a1","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":169,"box":{"x":101,"y":264,"width":733,"height":11}},{"id":"86a48a89-1bed-40f6-9c0d-cd6ba9532999","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":169,"box":{"x":69,"y":279,"width":793,"height":11}},{"id":"9861000f-6116-4f8a-b011-52174c09192e","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":169,"box":{"x":70,"y":294,"width":832,"height":11}},{"id":"dc7c9aa7-3d82-4ccd-b03b-62073afecb94","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":169,"box":{"x":69,"y":309,"width":785,"height":11}},{"id":"75f79950-490d-4256-af2c-69ac7858a2f4","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":169,"box":{"x":68,"y":324,"width":825,"height":12}},{"id":"25221c33-8306-4503-96f7-adabb90bafb2","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":169,"box":{"x":68,"y":339,"width":837,"height":12}},{"id":"da90075e-18e0-4989-a3d5-651c42cdd885","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":169,"box":{"x":69,"y":355,"width":767,"height":11}},{"id":"b26c36c4-6f5d-4824-9d01-87a52e65d982","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":169,"box":{"x":69,"y":370,"width":750,"height":11}},{"id":"687d22dd-1458-4621-8b8c-08e0ef28a2e9","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":169,"box":{"x":102,"y":392,"width":757,"height":12}},{"id":"1cb1b6fb-1da6-49a3-bff5-51a8a11a0395","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":169,"box":{"x":69,"y":407,"width":837,"height":12}},{"id":"fa228e17-109e-4489-9962-3e82cd8678b2","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":169,"box":{"x":69,"y":423,"width":805,"height":11}},{"id":"dbd093a7-facf-44be-98f5-67e65cf85819","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":169,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"05588525-3a71-4b25-8d5f-187b315a5a2c","block_type":"box","text":"may be distributed by the Distributor.","page_number":169,"box":{"x":69,"y":453,"width":262,"height":11}},{"id":"1ba39904-3fd3-434e-8beb-a06ff7696e2d","block_type":"box","text":"Participation in Fee-Based Programs","page_number":169,"box":{"x":69,"y":483,"width":266,"height":11}},{"id":"4f97aa48-661f-4981-8c4a-60861fff5f71","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":169,"box":{"x":102,"y":506,"width":780,"height":11}},{"id":"5990da18-5f70-4597-9dfa-5c717b93ab29","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":169,"box":{"x":69,"y":521,"width":826,"height":11}},{"id":"4ee0f6b8-2f83-4bbc-901e-9f315180560f","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":169,"box":{"x":70,"y":536,"width":825,"height":11}},{"id":"b107dc9d-4bb3-4c11-ba47-cca6f7e4974d","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":169,"box":{"x":69,"y":551,"width":770,"height":11}},{"id":"67665774-6f28-478b-b0b6-1368fd62fb7f","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":169,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"43131344-8019-4d30-90fd-2131b05b7372","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":169,"box":{"x":70,"y":581,"width":808,"height":12}},{"id":"ebd64280-2904-4dee-8a02-f3ac8b74150a","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":169,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"97b82d05-44b6-4014-af17-1a5a1e67cdfd","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":169,"box":{"x":69,"y":612,"width":804,"height":11}},{"id":"9083654d-2e8e-458a-9996-533e1eb30743","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":169,"box":{"x":70,"y":627,"width":555,"height":11}},{"id":"aa3596a3-5598-4dab-beec-3f40f5db8d18","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":169,"box":{"x":102,"y":649,"width":788,"height":12}},{"id":"d4711741-fb22-4f45-a0a8-10440c7a5362","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":169,"box":{"x":69,"y":665,"width":817,"height":10}},{"id":"908c23d3-40af-4150-916d-c400e6832de3","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":169,"box":{"x":69,"y":680,"width":796,"height":11}},{"id":"c1b1a0f0-9c41-4322-82db-696309068cef","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":169,"box":{"x":70,"y":695,"width":754,"height":11}},{"id":"5f6bf8ab-a43a-4394-9d07-b59994b54ba9","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":169,"box":{"x":70,"y":710,"width":820,"height":11}},{"id":"f8e4ab42-997a-46b2-b4b5-132d7f243570","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":169,"box":{"x":70,"y":725,"width":777,"height":11}},{"id":"68641b53-357d-4824-821d-df4caeabcd76","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":169,"box":{"x":70,"y":740,"width":791,"height":11}},{"id":"739f6853-b1e9-4d39-9931-68f353830c69","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":169,"box":{"x":69,"y":755,"width":756,"height":11}},{"id":"cd29020a-521f-449c-8e06-85e6036a5b92","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":169,"box":{"x":102,"y":778,"width":793,"height":11}},{"id":"e6f199e1-2270-4282-ad54-458875a5ba4a","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":169,"box":{"x":68,"y":793,"width":791,"height":11}},{"id":"f8dd9210-ff80-41bb-ac9f-6526a14e929e","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":169,"box":{"x":70,"y":808,"width":830,"height":11}},{"id":"f8a3014a-37c2-4504-aa88-42fec3a7b409","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":169,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"34b4fb55-164f-432c-995c-36f1ece21276","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":169,"box":{"x":69,"y":838,"width":801,"height":12}},{"id":"f7dbe026-768c-48b1-b7a5-8bc5161e7d36","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":169,"box":{"x":69,"y":853,"width":424,"height":12}},{"id":"2f6a9b83-b5be-4c40-9106-af490c38f085","block_type":"box","text":"II-122","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3a17ea8b-3c41-4e69-977b-895480757a07","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"75bf5936-e0af-4317-9cbd-33027b5ce7be","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":170,"box":{"x":102,"y":45,"width":752,"height":11}},{"id":"7e0111f1-0da9-487f-9267-3c10baba21b0","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":170,"box":{"x":70,"y":60,"width":789,"height":11}},{"id":"8d4cad81-7294-4420-b762-921589b02a87","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":170,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"f4c2569b-c885-4e65-91c6-2956e941d228","block_type":"box","text":"information.","page_number":170,"box":{"x":70,"y":90,"width":83,"height":9}},{"id":"bd7b6b4d-acc2-45b8-98a9-324a28aaedcc","block_type":"box","text":"Retirement and Education Savings Plans","page_number":170,"box":{"x":69,"y":120,"width":296,"height":11}},{"id":"687929eb-bde2-4568-8cf3-0e14283e6d58","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":170,"box":{"x":102,"y":143,"width":805,"height":11}},{"id":"08bbe77e-87cf-4425-aac6-197d469c5408","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":170,"box":{"x":70,"y":158,"width":815,"height":11}},{"id":"89cac689-5a33-4bcf-a157-1ef9fb66caea","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":170,"box":{"x":68,"y":173,"width":819,"height":11}},{"id":"c6f56cb1-d445-4277-9155-52a61ad1c7e9","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":170,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"29f1e4c5-d799-4401-8443-3898f2951545","block_type":"box","text":"your financial intermediary.","page_number":170,"box":{"x":68,"y":203,"width":191,"height":12}},{"id":"605ae441-6632-4414-9d42-0cd3d592089e","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":170,"box":{"x":102,"y":226,"width":796,"height":11}},{"id":"2635bad1-69f5-4ae4-a78c-955ce95195d3","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":170,"box":{"x":68,"y":241,"width":784,"height":11}},{"id":"9950c66e-fa52-4c70-81b9-adf61cd3bda5","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":170,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"29c998e5-e93a-43b0-b620-fedb8a8eee52","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":170,"box":{"x":69,"y":271,"width":753,"height":12}},{"id":"082c651b-149d-4835-871b-c5f139b23173","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":170,"box":{"x":69,"y":286,"width":354,"height":12}},{"id":"271537d1-8c18-410a-aba0-dc798534fd9b","block_type":"box","text":"Automatic Investment Plans","page_number":170,"box":{"x":68,"y":317,"width":207,"height":9}},{"id":"6e74396a-a6e5-44b8-a8a5-2c13eda18e56","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":170,"box":{"x":102,"y":339,"width":773,"height":11}},{"id":"92c090b1-9a27-4106-a496-d36c4c6daf7f","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":170,"box":{"x":69,"y":355,"width":477,"height":11}},{"id":"33cc434c-f2c8-48e2-baca-52df1a665f0a","block_type":"box","text":"®","page_number":170,"box":{"x":547,"y":355,"width":6,"height":4}},{"id":"8f8d2d28-2006-4d27-86c9-529f33e7226e","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":170,"box":{"x":559,"y":355,"width":272,"height":11}},{"id":"4bc815d2-da31-49d6-932a-1d3fd2c886a6","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":170,"box":{"x":70,"y":370,"width":787,"height":11}},{"id":"63b3e030-df0f-4ada-be10-9636a6c51abc","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":170,"box":{"x":69,"y":384,"width":822,"height":12}},{"id":"0d9f0bde-223d-44ee-8d2f-1fb5892fc044","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":170,"box":{"x":68,"y":400,"width":805,"height":11}},{"id":"bbeae925-b041-4536-8d06-5bb273be2cd6","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":170,"box":{"x":68,"y":430,"width":285,"height":9}},{"id":"903baa96-2760-4388-ae90-71075cceef75","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":170,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"910833ee-a5e6-41fe-93a1-643b22b4ddaa","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":170,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"6ff2abb3-c9f8-4d18-8dbc-b5042904247c","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":170,"box":{"x":69,"y":483,"width":839,"height":9}},{"id":"1d3818ca-acd3-43a6-87d1-c577d26162a2","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":170,"box":{"x":70,"y":498,"width":822,"height":11}},{"id":"7667c997-b4cc-4a17-a220-ae7b19f4fe15","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":170,"box":{"x":69,"y":513,"width":614,"height":12}},{"id":"8b962db5-3c1d-4600-ac8b-8da15e809a05","block_type":"box","text":"Systematic Withdrawal Plans","page_number":170,"box":{"x":68,"y":544,"width":214,"height":11}},{"id":"2fc81420-470d-4e85-9365-0761099b526a","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":170,"box":{"x":102,"y":566,"width":780,"height":11}},{"id":"902ff1ea-f0df-4a51-897d-46f9fc35295c","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":170,"box":{"x":70,"y":581,"width":742,"height":11}},{"id":"5c8de18a-9431-4460-b1d4-5c6cd3e98134","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":170,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"16c21c83-0874-4640-a430-b995c2ceade3","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":170,"box":{"x":68,"y":612,"width":823,"height":11}},{"id":"1ffd0e36-4505-4819-adfd-960fcbd45d01","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":170,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"34aa40c1-0b2c-4cf6-84aa-544f6fa8962b","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":170,"box":{"x":69,"y":642,"width":800,"height":11}},{"id":"c9c08eb0-dac2-4dba-b05b-2754eb054f6a","block_type":"box","text":"www.blackrock.com.","page_number":170,"box":{"x":68,"y":657,"width":142,"height":9}},{"id":"e2d66c8a-c614-4701-aa2e-a7412c11cb27","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":170,"box":{"x":102,"y":680,"width":789,"height":11}},{"id":"b4311281-5dfe-418a-922a-4a5864b55cb5","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":170,"box":{"x":68,"y":695,"width":774,"height":11}},{"id":"ce1a41d9-3d5e-46f8-87cc-64bd981225ef","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":170,"box":{"x":69,"y":710,"width":815,"height":11}},{"id":"1db0da50-3730-4fbc-94c2-db617d781c55","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":170,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"63e11c62-3f76-4ed2-b445-2ec439197d5c","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":170,"box":{"x":69,"y":740,"width":803,"height":11}},{"id":"65e627f5-1a82-42bc-9dc5-ed542d146448","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":170,"box":{"x":69,"y":755,"width":820,"height":11}},{"id":"998c32ef-16d3-42bc-b10c-c1a842f308e5","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":170,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"40ff81ad-c67e-4e05-a811-a60234300a55","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":170,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"da38d5f2-3def-49f3-8d33-978db1867495","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":170,"box":{"x":69,"y":801,"width":840,"height":11}},{"id":"7e07eba7-7496-422c-842b-eca013f378da","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":170,"box":{"x":69,"y":816,"width":367,"height":11}},{"id":"74209e2b-16c7-4e89-8ad8-d1533b778806","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":170,"box":{"x":102,"y":839,"width":798,"height":10}},{"id":"72954206-af0f-42bb-a309-ec2c47fc5965","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":170,"box":{"x":68,"y":853,"width":834,"height":12}},{"id":"58fcca48-19c0-41ca-b974-2fe4ff79175b","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":170,"box":{"x":69,"y":869,"width":311,"height":11}},{"id":"07d72b3e-8225-478e-ac04-fcb6699d81cb","block_type":"box","text":"II-123","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"006b48e9-6390-4e63-8866-2154e4693b50","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c664fe08-74e3-4dbb-9b8f-b50b82ce1cc5","block_type":"box","text":"Dividend Allocation Plan","page_number":171,"box":{"x":69,"y":45,"width":176,"height":9}},{"id":"60ccbe77-316a-4942-8e92-9d91e1753731","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":171,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"b0edaf67-346a-42de-befb-cf3aa29b2322","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":171,"box":{"x":69,"y":82,"width":763,"height":12}},{"id":"f81a9944-f83c-450c-9530-cc779c6b9710","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":171,"box":{"x":69,"y":98,"width":814,"height":11}},{"id":"66eb7891-6a34-48aa-ab3f-dc0859cab58a","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":171,"box":{"x":70,"y":113,"width":771,"height":11}},{"id":"25ceb0c9-2989-40e3-9b5e-0555880fcbb4","block_type":"box","text":"PRICING OF SHARES","page_number":171,"box":{"x":406,"y":142,"width":167,"height":10}},{"id":"e7d386b0-bed7-450d-bd54-2c0b8d4798b7","block_type":"box","text":"Determination of Net Asset Value","page_number":171,"box":{"x":69,"y":173,"width":243,"height":9}},{"id":"3d3c61f7-8c70-4943-8b5c-4658ba43ac2f","block_type":"box","text":"Valuation of Shares.","page_number":171,"box":{"x":101,"y":195,"width":145,"height":9}},{"id":"377c5c06-b15c-4ae2-9f50-0b18a2e94706","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":171,"box":{"x":252,"y":195,"width":626,"height":11}},{"id":"2ef2c9fe-d317-41d2-9d7c-0c2e04d0e250","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":171,"box":{"x":69,"y":210,"width":785,"height":12}},{"id":"a09bc2b0-1eb2-48ae-9d94-f074d9864d5c","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":171,"box":{"x":101,"y":233,"width":342,"height":11}},{"id":"004fa4ca-3580-4263-9d8e-305ae16d62a6","block_type":"box","text":"Equity Investments.","page_number":171,"box":{"x":102,"y":256,"width":143,"height":11}},{"id":"2cc96ad4-1731-4607-a1b9-67f0c57d6889","block_type":"box","text":"Equity securities traded on a recognized securities exchange (e.g., NYSE), on separate","page_number":171,"box":{"x":252,"y":256,"width":615,"height":11}},{"id":"29dd0666-455a-4ec5-b9f2-a6bbf80ce863","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":171,"box":{"x":68,"y":271,"width":799,"height":11}},{"id":"08f868de-7bdd-43a7-aa54-a482601c8cef","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":171,"box":{"x":70,"y":286,"width":808,"height":11}},{"id":"a4740d69-bc3c-45c0-b14f-e479ff8c0c1c","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":171,"box":{"x":68,"y":301,"width":820,"height":11}},{"id":"a1c92c09-0513-4273-8fb8-4cb886316506","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":171,"box":{"x":70,"y":316,"width":805,"height":11}},{"id":"580e09e0-8f76-4ece-a476-718a30321efd","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":171,"box":{"x":69,"y":331,"width":793,"height":12}},{"id":"5a715223-c7a7-4f47-98a8-f8b2fa0a25c9","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":171,"box":{"x":70,"y":346,"width":836,"height":12}},{"id":"2a163a11-ea88-427d-9f50-3fbf5f439fb6","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":171,"box":{"x":68,"y":362,"width":815,"height":11}},{"id":"4ae77130-259b-4212-93fd-d8e63c00019c","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":171,"box":{"x":70,"y":377,"width":837,"height":11}},{"id":"5209be91-8350-44bf-8d81-713373959963","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":171,"box":{"x":69,"y":392,"width":832,"height":11}},{"id":"7e58ffb2-2e43-4a11-80ec-d1f1ed8e9043","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":171,"box":{"x":68,"y":407,"width":828,"height":11}},{"id":"d47f5e41-754c-4a5d-a72e-8b26afea1e58","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":171,"box":{"x":68,"y":422,"width":819,"height":11}},{"id":"c476276c-d4a8-4b6f-be20-69e60443c92d","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":171,"box":{"x":70,"y":437,"width":798,"height":11}},{"id":"9503004d-f6f8-4bbe-9d6e-a7870636add2","block_type":"box","text":"defined below).","page_number":171,"box":{"x":69,"y":452,"width":106,"height":11}},{"id":"d9c40fcc-826c-4eb9-9c0e-3797e5995033","block_type":"box","text":"Fixed-Income Investments.","page_number":171,"box":{"x":102,"y":475,"width":194,"height":9}},{"id":"216334d8-df4c-4481-b677-18123e41fe1e","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":171,"box":{"x":304,"y":475,"width":565,"height":11}},{"id":"260e322e-4a82-466e-8c31-68875b4a9dd0","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":171,"box":{"x":70,"y":490,"width":825,"height":11}},{"id":"371fd355-485f-4414-a82c-3d554de5c65b","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":171,"box":{"x":69,"y":505,"width":823,"height":11}},{"id":"9318e01b-9a3e-4a33-8699-d11dbb9c61ca","block_type":"box","text":"and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit","page_number":171,"box":{"x":69,"y":520,"width":800,"height":12}},{"id":"8ecd460a-736b-472b-ac48-e6f7c4bb75ac","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":171,"box":{"x":69,"y":535,"width":834,"height":11}},{"id":"531febab-c792-409d-a765-bb807e959e07","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":171,"box":{"x":69,"y":550,"width":769,"height":12}},{"id":"158d44aa-3a90-4de5-af2e-62040d0caa9f","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":171,"box":{"x":70,"y":566,"width":797,"height":11}},{"id":"cb10168f-c0c6-4e81-8b15-978449c0a2f8","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":171,"box":{"x":69,"y":581,"width":821,"height":11}},{"id":"701a1c06-d3a2-4043-bbfa-d3122b6e9b4c","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":171,"box":{"x":68,"y":596,"width":798,"height":11}},{"id":"89675770-ec01-42cf-8f3a-5cf5399c05b9","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":171,"box":{"x":69,"y":611,"width":825,"height":11}},{"id":"ea85e3f0-c89b-4c16-bb33-bfe8afb01177","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":171,"box":{"x":69,"y":626,"width":791,"height":11}},{"id":"4c8afb80-2a1b-4581-9a16-cfaca98d8760","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":171,"box":{"x":69,"y":641,"width":814,"height":11}},{"id":"39ab0398-9a97-4f2e-9dba-55b3a3677f55","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":171,"box":{"x":68,"y":656,"width":802,"height":12}},{"id":"cb282b23-b25b-440e-8b14-08dd7315c145","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":171,"box":{"x":69,"y":671,"width":773,"height":11}},{"id":"fa1bb660-b044-4290-a550-a7df19b929f0","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":171,"box":{"x":69,"y":686,"width":795,"height":12}},{"id":"b6f263f3-939e-491e-9bdd-0cf3dc8b7129","block_type":"box","text":"attributes of the tranche.","page_number":171,"box":{"x":69,"y":702,"width":176,"height":9}},{"id":"cf789304-7c5b-48b6-a383-bd95c6b6d958","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":171,"box":{"x":101,"y":724,"width":344,"height":11}},{"id":"23639734-fbb3-435a-83ff-ba7cd6f915dd","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":171,"box":{"x":453,"y":725,"width":416,"height":11}},{"id":"de6e80c6-06f5-4e01-823c-5a5b45460faf","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":171,"box":{"x":70,"y":739,"width":829,"height":12}},{"id":"7252fcde-8298-4513-91e3-dc02389efc48","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":171,"box":{"x":69,"y":755,"width":824,"height":11}},{"id":"b32d0cf7-103f-492e-9017-be19bb31e769","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":171,"box":{"x":68,"y":770,"width":838,"height":11}},{"id":"b20fe028-e55e-452f-a5e3-ff4e3433d61e","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":171,"box":{"x":68,"y":785,"width":820,"height":11}},{"id":"2a30df04-518d-45a5-a491-942a8d198105","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":171,"box":{"x":68,"y":800,"width":808,"height":11}},{"id":"b16ccb76-046c-418e-82e9-e3c6f3a3a52d","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":171,"box":{"x":69,"y":815,"width":824,"height":11}},{"id":"ded2d881-e633-4189-90d7-6d899ee016c3","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":171,"box":{"x":68,"y":830,"width":789,"height":11}},{"id":"c837ef1b-9993-4d4e-b620-36839fe6c0f4","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":171,"box":{"x":69,"y":845,"width":807,"height":12}},{"id":"aee3444e-266e-4207-8aeb-20cd66752709","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":171,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"6f85e970-0a37-440f-b796-a64924a56fea","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":171,"box":{"x":69,"y":875,"width":833,"height":12}},{"id":"8eda0d8c-bfe9-4341-93a0-3373ee93b4c6","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":171,"box":{"x":69,"y":891,"width":830,"height":11}},{"id":"c2a338de-2ae9-4b73-a502-81f934cde99f","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":171,"box":{"x":69,"y":906,"width":301,"height":9}},{"id":"0589b043-ea60-4b3f-a119-1779adcb2f45","block_type":"box","text":"II-124","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"207f3992-5f7b-4826-9221-ef42641c4896","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ccb97415-d175-43a6-ae21-4eb372360e91","block_type":"box","text":"Underlying Funds.","page_number":172,"box":{"x":102,"y":45,"width":128,"height":11}},{"id":"7cb26ed6-9704-4f45-8527-d02a2cc8e080","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":172,"box":{"x":237,"y":45,"width":640,"height":11}},{"id":"2e8f4869-3170-485d-b504-1c7d09dfdada","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":172,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"15f3e4fd-346d-498b-88fa-6555b25cc8fd","block_type":"box","text":"at their most recent closing price.","page_number":172,"box":{"x":69,"y":75,"width":238,"height":11}},{"id":"0a91eb0a-e054-473e-955f-29582ff876b1","block_type":"box","text":"General Valuation Information.","page_number":172,"box":{"x":101,"y":98,"width":220,"height":9}},{"id":"001b1a32-062f-47ed-b20c-9b2022c41e93","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":172,"box":{"x":328,"y":98,"width":564,"height":11}},{"id":"f2e19b92-662e-465b-b1fc-d01d77cdb979","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":172,"box":{"x":69,"y":113,"width":831,"height":9}},{"id":"b29e5979-9c53-4aef-ba19-ab7dd469725a","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":172,"box":{"x":68,"y":128,"width":828,"height":11}},{"id":"97f57f73-0b04-42be-816d-c80c2c184b80","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":172,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"413c76d3-e01c-4131-89d4-91f4b3de4709","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":172,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"372b7279-296a-47e8-a231-1d12a04d72ca","block_type":"box","text":"the revision.","page_number":172,"box":{"x":68,"y":173,"width":87,"height":9}},{"id":"a3be8534-4f66-465c-ac1c-5bb255226305","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":172,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"1457c51d-b573-4f9a-8488-88d579d0165a","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":172,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"d7ab1678-e81b-43aa-a953-03be49dd8aac","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":172,"box":{"x":69,"y":226,"width":818,"height":11}},{"id":"a110d7af-03b9-4e3e-a31b-479699d0e721","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":172,"box":{"x":70,"y":241,"width":832,"height":11}},{"id":"4bedc4da-692f-4ac3-83f9-9a432c98ccd0","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":172,"box":{"x":70,"y":256,"width":832,"height":11}},{"id":"644c4bc8-3ea0-4452-b9d9-4f932507934b","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":172,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"80713acc-b340-43df-a0f0-e70defe9cc40","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":172,"box":{"x":69,"y":286,"width":837,"height":12}},{"id":"ef428789-de37-4cc3-a9d7-27b0eb35c32f","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":172,"box":{"x":70,"y":302,"width":833,"height":11}},{"id":"0a1cb85e-b3e1-4e7a-8c37-7151eb4362dd","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":172,"box":{"x":69,"y":317,"width":827,"height":11}},{"id":"329dccfe-12ce-47d5-be74-bb279a00fa85","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":172,"box":{"x":70,"y":332,"width":741,"height":11}},{"id":"4f57aaec-7c3e-4c62-8686-5916364749a0","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":172,"box":{"x":102,"y":355,"width":800,"height":11}},{"id":"ac3b2c64-1e4b-426b-8bdc-67ecdac5e3ff","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":172,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"bf72e1c8-4254-40fb-8f5f-e74fbac342e2","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":172,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"ecad6c26-d428-4caf-bbab-c9707c5a7553","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":172,"box":{"x":68,"y":400,"width":824,"height":11}},{"id":"3409dac4-3c53-420c-b7eb-0ab73d3ec0d6","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":172,"box":{"x":69,"y":415,"width":817,"height":11}},{"id":"2d83ad7c-4f7a-458a-ab74-aaf35f2046ce","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":172,"box":{"x":69,"y":430,"width":802,"height":11}},{"id":"a06848c0-c80d-4d9a-8e4e-dabaad983cbd","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":172,"box":{"x":69,"y":445,"width":685,"height":12}},{"id":"de85f61e-b0b9-40e4-ab8a-aa83c7d827c5","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":172,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"00d7b708-de90-4c32-8934-28752e301e09","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":172,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"cb6959bb-74bf-49ef-bef0-716f053e0920","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":172,"box":{"x":69,"y":498,"width":529,"height":11}},{"id":"5ab95b18-b14c-41d5-9c0b-3811ac669eb6","block_type":"box","text":"Fair Value.","page_number":172,"box":{"x":102,"y":521,"width":74,"height":9}},{"id":"56b720b1-2b19-44a5-836f-c898376c74cb","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":172,"box":{"x":183,"y":521,"width":693,"height":11}},{"id":"5013d42f-8d5a-4d0b-b16c-8883e9ccc165","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":172,"box":{"x":70,"y":536,"width":785,"height":11}},{"id":"e49f4ce2-c2e0-4a81-828f-1fd940d74407","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":172,"box":{"x":69,"y":551,"width":816,"height":11}},{"id":"fc6f0a1a-6f2f-41f5-a094-b338bb657bf2","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":172,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"ac6c88cd-2c87-4134-9bf4-822ba2fffa4c","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":172,"box":{"x":70,"y":582,"width":773,"height":10}},{"id":"954488d5-8dac-4829-b30e-0876a7970f55","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":172,"box":{"x":69,"y":596,"width":772,"height":12}},{"id":"04df3330-f518-4042-bc4c-0581edf2d31b","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":172,"box":{"x":69,"y":612,"width":826,"height":11}},{"id":"ddd23d20-f5d1-4da0-b013-d48665a23800","block_type":"box","text":"(e.g., where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":172,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"5ff03c90-1f74-41e4-b90b-283568b14eb0","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":172,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"1bba754a-ce71-46c9-b334-61958290c646","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":172,"box":{"x":68,"y":657,"width":837,"height":11}},{"id":"9a62c5f9-125b-42c1-9cb9-8fa5cf2fe0cc","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":172,"box":{"x":70,"y":672,"width":838,"height":11}},{"id":"7ecfdb26-6529-46d5-9c78-aa31a1474037","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":172,"box":{"x":69,"y":687,"width":824,"height":11}},{"id":"a9ae7531-535d-4087-bd78-6fbf9cf957f8","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":172,"box":{"x":69,"y":702,"width":828,"height":12}},{"id":"f543f283-35be-47d4-bc9d-881a3424b19b","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":172,"box":{"x":69,"y":717,"width":793,"height":12}},{"id":"02ec2e5a-a815-48f7-aa5f-ee9b911b3ac4","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":172,"box":{"x":70,"y":732,"width":819,"height":12}},{"id":"10d854c6-6079-4874-b0f8-882e8b8750fe","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":172,"box":{"x":68,"y":748,"width":810,"height":11}},{"id":"0e345373-9c34-4291-b63a-b32506460ac2","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":172,"box":{"x":69,"y":763,"width":828,"height":11}},{"id":"c2474165-140d-453a-9fa7-d316fb3b2431","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":172,"box":{"x":69,"y":778,"width":822,"height":11}},{"id":"f32aa51c-28af-43ac-8d2e-75015f83fcfc","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":172,"box":{"x":68,"y":793,"width":814,"height":11}},{"id":"2fd455c6-eca0-4a6b-aa73-28f11bf02847","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":172,"box":{"x":69,"y":808,"width":827,"height":11}},{"id":"c4a40ee8-0d31-461a-8cc2-d34462697331","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":172,"box":{"x":69,"y":823,"width":834,"height":12}},{"id":"93c26127-4b70-422b-b823-af340f8b3b94","block_type":"box","text":"pricing time.","page_number":172,"box":{"x":70,"y":839,"width":85,"height":11}},{"id":"a7b5769d-b996-4a03-b7fa-be755062b7e9","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":172,"box":{"x":102,"y":861,"width":794,"height":11}},{"id":"11af5df8-1b7d-45fa-bda2-3b8c1c435299","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":172,"box":{"x":69,"y":876,"width":829,"height":11}},{"id":"d3402de2-ed50-48da-a215-02d7061900cf","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":172,"box":{"x":69,"y":891,"width":813,"height":12}},{"id":"a1967421-a104-46ae-8dd8-aca25f3182f3","block_type":"box","text":"II-125","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"521f49f1-2d54-4ce4-865b-278d245ea0e8","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"460819dd-f5fc-4888-ba8f-a9db5b8af0bc","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":173,"box":{"x":70,"y":45,"width":808,"height":11}},{"id":"3258f359-8ca7-4f3f-87e8-2d7a8f7f9083","block_type":"box","text":"assets and liabilities of the Funds.","page_number":173,"box":{"x":69,"y":60,"width":245,"height":9}},{"id":"dddad61f-bb26-44d4-9a2d-106c13358a5f","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":173,"box":{"x":101,"y":82,"width":795,"height":12}},{"id":"89e58abd-7595-489a-99c9-e98b413dcb32","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":173,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"528e275a-ca0a-441f-8c4a-b30a35d6fd92","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":173,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"4fe97b45-1b89-428a-9ae4-158e8aeb4a51","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":173,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"92088cec-d415-4c81-bb72-dabd4b20445b","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":173,"box":{"x":69,"y":143,"width":744,"height":11}},{"id":"5c05c62c-0bc8-4100-9185-a19741aa49fd","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":173,"box":{"x":69,"y":158,"width":791,"height":11}},{"id":"a3f4e4df-a980-4ddc-b512-c4ba14576f67","block_type":"box","text":"valuation models.","page_number":173,"box":{"x":68,"y":173,"width":125,"height":9}},{"id":"290ca391-3422-4e0f-b9d9-c1398a5ede6e","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":173,"box":{"x":102,"y":196,"width":785,"height":11}},{"id":"4ed92bf0-c43a-4a67-8a33-e074d4b45407","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":173,"box":{"x":68,"y":211,"width":822,"height":11}},{"id":"934994ff-2079-443d-8889-668ca9823443","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":173,"box":{"x":68,"y":226,"width":820,"height":11}},{"id":"35a319c1-dca4-475f-880c-a79dd4ef52d7","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":173,"box":{"x":69,"y":241,"width":818,"height":11}},{"id":"9a423b7a-46e5-4a2c-a7e9-9b93f197d089","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":173,"box":{"x":69,"y":257,"width":766,"height":10}},{"id":"e23527fb-412a-43e1-ad21-7f7d8c99bd58","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":173,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"e2d961df-190a-4309-8e64-74fa28566e12","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":173,"box":{"x":69,"y":286,"width":378,"height":12}},{"id":"f3b84580-0275-4ec6-b884-449c4055cb3c","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":173,"box":{"x":101,"y":309,"width":784,"height":11}},{"id":"9826d09f-3492-4bd4-b690-b2229acd468d","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":173,"box":{"x":70,"y":324,"width":836,"height":12}},{"id":"42cb2e1d-8fa9-4c70-9d39-658a0d085f64","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":173,"box":{"x":70,"y":339,"width":834,"height":12}},{"id":"a1bf4c14-206e-4c2a-bc80-2efccc64290d","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":173,"box":{"x":68,"y":355,"width":728,"height":11}},{"id":"69864f51-a433-4104-acce-9626830d3740","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":173,"box":{"x":102,"y":377,"width":786,"height":12}},{"id":"16d88ddb-9825-41fb-b3d5-d7e42fb352ca","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":173,"box":{"x":68,"y":392,"width":809,"height":12}},{"id":"79813145-94a0-4dac-9072-c93e24e848c8","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":173,"box":{"x":70,"y":407,"width":821,"height":12}},{"id":"97fe5c3e-cdd6-46d7-8bcc-b0a251241a43","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":173,"box":{"x":70,"y":423,"width":818,"height":11}},{"id":"738207f8-1c3f-4eea-8e6e-4d7d4b54fa98","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":173,"box":{"x":69,"y":438,"width":641,"height":11}},{"id":"c55ad428-d2d5-48b6-8339-aaebf33e8fc4","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":173,"box":{"x":102,"y":460,"width":786,"height":12}},{"id":"2f8640a4-92a0-49b5-8264-92eb40b3fb6d","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":173,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"2d419935-f992-470c-a945-58cf9c80ab3b","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":173,"box":{"x":69,"y":491,"width":780,"height":11}},{"id":"c0b42d5e-304f-4feb-81ba-fc490debc03a","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":173,"box":{"x":70,"y":506,"width":810,"height":11}},{"id":"4a3fd484-7ac5-44cf-ae83-5411abb220b0","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":173,"box":{"x":70,"y":521,"width":810,"height":11}},{"id":"8d6de92c-e4e4-4f02-99eb-c056b4cf507e","block_type":"box","text":"party determination of fair market value.","page_number":173,"box":{"x":70,"y":536,"width":285,"height":11}},{"id":"df410b61-7d74-4841-ba6f-09d1cc637bbc","block_type":"box","text":"Computation of Offering Price Per Share","page_number":173,"box":{"x":69,"y":566,"width":292,"height":11}},{"id":"e29dc1a5-66d4-4eed-b4fb-c0d4059370f3","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":173,"box":{"x":102,"y":589,"width":791,"height":11}},{"id":"23f04a14-8adc-45b5-bb82-703c1770267c","block_type":"box","text":"the offering price for shares of your Fund.","page_number":173,"box":{"x":68,"y":604,"width":295,"height":11}},{"id":"69eada34-e2f1-4ee6-abf7-1f4110acb094","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":173,"box":{"x":303,"y":633,"width":373,"height":10}},{"id":"798e7772-fee6-4a82-9ef8-12978294871f","block_type":"box","text":"Transactions in Portfolio Securities","page_number":173,"box":{"x":68,"y":664,"width":257,"height":9}},{"id":"d7e91abd-f34c-4140-8f5c-01fef6d0c3d4","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":173,"box":{"x":102,"y":686,"width":798,"height":12}},{"id":"04fe4194-a294-4ea1-9712-2ce950855b15","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":173,"box":{"x":69,"y":702,"width":839,"height":11}},{"id":"63a1394c-d410-43d1-ad1e-c4bdd27ce593","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":173,"box":{"x":70,"y":717,"width":822,"height":11}},{"id":"f2414e12-07c3-489d-ab3a-480842ebc21d","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":173,"box":{"x":69,"y":732,"width":820,"height":11}},{"id":"f7c0457d-b4e2-4224-892f-36be6635a3bb","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":173,"box":{"x":68,"y":747,"width":798,"height":11}},{"id":"57d4155a-33bf-42d9-9985-ab0999f67cef","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":173,"box":{"x":69,"y":762,"width":765,"height":11}},{"id":"a08ffbed-8ff5-4123-9e90-57137cb27300","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":173,"box":{"x":69,"y":777,"width":768,"height":12}},{"id":"69786c12-faf8-4496-a7bf-0baaa3d01d05","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":173,"box":{"x":70,"y":792,"width":830,"height":12}},{"id":"b471e160-a524-4758-b8fb-8e8130a9e6c8","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":173,"box":{"x":69,"y":807,"width":760,"height":12}},{"id":"c0652348-59f6-45c5-b57b-a508e0926dc9","block_type":"box","text":"reasonable in relation to the services provided.","page_number":173,"box":{"x":69,"y":823,"width":336,"height":11}},{"id":"7d29fcd0-6dbf-40fe-9646-b6c96a782b13","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":173,"box":{"x":102,"y":845,"width":794,"height":12}},{"id":"f0d6db79-55cd-4e63-86a3-7a6536ce3a81","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":173,"box":{"x":70,"y":860,"width":835,"height":12}},{"id":"103bc133-d421-453c-a695-d9f032629128","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":173,"box":{"x":102,"y":883,"width":784,"height":11}},{"id":"caf11e24-bee6-4706-99d3-6ac653ab8332","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":173,"box":{"x":68,"y":898,"width":829,"height":11}},{"id":"79f3f3a0-775b-4823-8bfa-1044c169cc92","block_type":"box","text":"II-126","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ed93a24a-8fc2-4ba7-8459-dd1d78c30b46","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b72248a9-f283-45e6-8b0e-fc751d7599c4","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":174,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"a46f0f90-2b3b-4eb5-9809-46b36d3c4f97","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":174,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"fcd894d6-65cc-45f5-a8b5-0eaebd633aa7","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":174,"box":{"x":69,"y":75,"width":789,"height":11}},{"id":"340f7ef9-7d63-40a8-aa43-ac5d9c70f28e","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":174,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"c46ab858-9093-472c-b3a6-3280a931c721","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":174,"box":{"x":69,"y":105,"width":769,"height":11}},{"id":"586ba4fb-e4ac-417d-ba47-ca23ca63f494","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":174,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"923896af-17b1-49f8-941c-40c8a9d1bcf0","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":174,"box":{"x":69,"y":135,"width":391,"height":11}},{"id":"f8668bf2-e235-44ff-9e6f-27fe0f54bd1e","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":174,"box":{"x":102,"y":158,"width":801,"height":11}},{"id":"c637f320-0b70-445e-bdaa-fba317551094","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":174,"box":{"x":68,"y":173,"width":802,"height":11}},{"id":"3a0ffc00-11a3-4fed-b0cb-9f650c001ea6","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":174,"box":{"x":69,"y":188,"width":775,"height":12}},{"id":"457c6e30-bbea-4fd4-a779-ea3f31c8f614","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":174,"box":{"x":69,"y":204,"width":790,"height":11}},{"id":"7cb550c2-5dce-466e-b244-ef88049d6702","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":174,"box":{"x":70,"y":218,"width":827,"height":12}},{"id":"197a92c3-5b00-4daa-9e57-a92e8c1cfe25","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":174,"box":{"x":68,"y":234,"width":753,"height":11}},{"id":"5c182ec2-3a07-403e-a603-51c00148963f","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":174,"box":{"x":70,"y":249,"width":818,"height":11}},{"id":"ce0316f0-0fe6-482d-bb2b-725d16484439","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":174,"box":{"x":69,"y":264,"width":837,"height":11}},{"id":"b01e7105-496b-41ef-b05a-2454bbc1116c","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":174,"box":{"x":70,"y":279,"width":775,"height":11}},{"id":"9a87e41c-6617-4329-8cfb-6d1b9b58ca58","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":174,"box":{"x":69,"y":294,"width":764,"height":11}},{"id":"c188f7a9-41a7-4002-a025-0aec1e45f43c","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":174,"box":{"x":69,"y":309,"width":770,"height":11}},{"id":"b334e031-8cf6-485c-a0ea-94641f442d44","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":174,"box":{"x":69,"y":324,"width":599,"height":12}},{"id":"ac816a50-f45c-43c8-a594-5960cfc88bfa","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":174,"box":{"x":102,"y":347,"width":796,"height":11}},{"id":"69f5ca19-dc6d-4e08-8a46-d0c33a2a8ce5","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":174,"box":{"x":70,"y":362,"width":829,"height":11}},{"id":"72807cea-bbf0-4377-8378-412d2c63eb9c","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":174,"box":{"x":68,"y":377,"width":839,"height":11}},{"id":"f99a2150-894c-4255-909f-1049e7640ce6","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":174,"box":{"x":69,"y":392,"width":839,"height":12}},{"id":"c49fab35-79d8-477d-ab2b-b4df76c8dd14","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":174,"box":{"x":69,"y":407,"width":809,"height":12}},{"id":"03ad44b7-6378-4496-8392-3423292462cb","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e).","page_number":174,"box":{"x":69,"y":423,"width":703,"height":11}},{"id":"aaa5d302-c1fa-4c92-ab40-b8072a8e1323","block_type":"box","text":"Certain Funds may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment","page_number":174,"box":{"x":102,"y":445,"width":743,"height":12}},{"id":"834a8069-4b6e-40cc-94bc-2274dafe3e6f","block_type":"box","text":"managers, including BIL, pay for any research out of their own resources and not through soft dollars or commission","page_number":174,"box":{"x":69,"y":460,"width":828,"height":12}},{"id":"b7735d73-3782-4293-b521-0c189bffe0ef","block_type":"box","text":"sharing arrangements. BlackRock regularly evaluates the soft dollar products and services utilized, as well as the","page_number":174,"box":{"x":69,"y":475,"width":809,"height":12}},{"id":"60cbf2bb-08b4-47c6-b10b-5363d2654fbd","block_type":"box","text":"overall soft dollar and commission sharing arrangements to ensure that trades are executed by firms that are","page_number":174,"box":{"x":69,"y":491,"width":781,"height":11}},{"id":"97b18570-b86b-4f1b-a33b-1f962f0b7864","block_type":"box","text":"regarded as best able to execute trades for client accounts, while at the same time providing access to the research","page_number":174,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"db4f713f-79c8-486b-82a3-896ff85d0eed","block_type":"box","text":"and other services BlackRock views as impactful to its trading results.","page_number":174,"box":{"x":69,"y":521,"width":500,"height":11}},{"id":"cb80099b-9ba6-41c7-8075-2e973604099d","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":174,"box":{"x":102,"y":543,"width":791,"height":12}},{"id":"761e0c13-c5fb-43e6-8aef-9794a2657cd9","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":174,"box":{"x":69,"y":559,"width":819,"height":11}},{"id":"c2939768-a290-4c87-a11c-b178f05823a9","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":174,"box":{"x":69,"y":574,"width":772,"height":11}},{"id":"0f8527d2-a450-4325-bd11-a81709612c35","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":174,"box":{"x":70,"y":589,"width":785,"height":11}},{"id":"a464abef-30d3-4b17-958b-05b300802e5f","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":174,"box":{"x":70,"y":604,"width":806,"height":11}},{"id":"59b9a807-478c-4d02-9234-156039539bc1","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":174,"box":{"x":68,"y":619,"width":772,"height":11}},{"id":"75aa2f43-f1cb-4d99-a1d3-89028834940a","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":174,"box":{"x":69,"y":634,"width":838,"height":12}},{"id":"d38a5567-c9f5-4001-b29d-0bc0bda73eec","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":174,"box":{"x":68,"y":649,"width":769,"height":12}},{"id":"e1c41fa8-844b-4e3e-9f0c-d4091eb02759","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":174,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"0dd02ae7-9989-49b0-b80d-92d247d5b2b7","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":174,"box":{"x":69,"y":680,"width":778,"height":11}},{"id":"c5362655-2b88-4690-b35f-8e671ed17430","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":174,"box":{"x":69,"y":695,"width":363,"height":11}},{"id":"bd8a9ea1-1e28-43a4-925c-b9686767fb65","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":174,"box":{"x":102,"y":717,"width":749,"height":12}},{"id":"8a84773c-fe19-406d-a762-fe4446cd58c7","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":174,"box":{"x":69,"y":732,"width":799,"height":12}},{"id":"500257c5-08fa-4a76-98eb-368cf0e261da","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":174,"box":{"x":70,"y":748,"width":752,"height":11}},{"id":"c13b66cc-a142-43ce-9d8b-fa5d4e8c9cf5","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":174,"box":{"x":70,"y":763,"width":823,"height":11}},{"id":"7436477e-c8ac-40a5-b6b5-c45cb11ce5b8","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":174,"box":{"x":70,"y":778,"width":822,"height":11}},{"id":"53d87ba0-7978-4647-a150-b82f1571f876","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":174,"box":{"x":69,"y":793,"width":840,"height":11}},{"id":"2451ab9f-2607-4c81-9cac-1ca8b61ab631","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":174,"box":{"x":68,"y":808,"width":805,"height":11}},{"id":"3fd77111-956a-4a12-9995-74d20510adee","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":174,"box":{"x":69,"y":823,"width":798,"height":12}},{"id":"e65aac0e-b739-44c1-87ce-e428d19a28de","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":174,"box":{"x":69,"y":838,"width":836,"height":12}},{"id":"0456a966-65e7-4148-8f01-d49f1874430b","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":174,"box":{"x":70,"y":853,"width":832,"height":12}},{"id":"24126d33-81cd-4cf7-92c3-e1d8eaf6e692","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":174,"box":{"x":70,"y":869,"width":798,"height":11}},{"id":"0b1bf30f-ff53-4f37-8b4b-a14976b152da","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":174,"box":{"x":69,"y":884,"width":780,"height":11}},{"id":"a73e61d0-169f-44d9-8fa0-de56b05d101a","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":174,"box":{"x":69,"y":899,"width":827,"height":11}},{"id":"a4b32312-19eb-4f52-a935-c71f1b2fad88","block_type":"box","text":"II-127","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"decf8669-e76c-4ace-a37a-5778923abb3f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0efd2529-802c-4109-a55b-dc2b9d8406e9","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":175,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"5d624e95-5fc7-4213-9629-fc2404905b8e","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":175,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"3ddc5377-af50-4ccc-a1e8-e9d0f4f471dd","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":175,"box":{"x":70,"y":75,"width":815,"height":11}},{"id":"5a1db8b5-eff6-4cb7-9a18-f5ef609673a8","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":175,"box":{"x":68,"y":90,"width":555,"height":11}},{"id":"94e05b15-e14a-41a7-9ddd-c4f0e008e11b","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":175,"box":{"x":102,"y":113,"width":802,"height":11}},{"id":"095f212e-6f33-4d5d-bce7-917b0b5bed4e","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":175,"box":{"x":68,"y":128,"width":825,"height":11}},{"id":"a2a6fe68-6a4b-466b-9bda-97e6971240ce","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":175,"box":{"x":69,"y":143,"width":798,"height":11}},{"id":"50badba7-6293-47d5-acd9-c2b9810b7f7d","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":175,"box":{"x":68,"y":158,"width":824,"height":11}},{"id":"767f1a77-ef32-471a-bfe5-749d2822e7ea","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":175,"box":{"x":70,"y":173,"width":812,"height":11}},{"id":"415907bd-47df-4d5f-87f7-e19f08d2769a","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":175,"box":{"x":69,"y":188,"width":547,"height":12}},{"id":"1918dcb1-478e-492b-bd0b-73d0b4dcc915","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":175,"box":{"x":102,"y":211,"width":804,"height":11}},{"id":"dc47006d-532b-464c-9e7a-7a98cdfcd768","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":175,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"72390a6c-e9f7-4565-9327-8c5dec9b03be","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":175,"box":{"x":70,"y":241,"width":836,"height":11}},{"id":"e854e240-73a0-42f0-8da5-1923dcf27767","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":175,"box":{"x":70,"y":256,"width":777,"height":11}},{"id":"98acea2c-53a4-4c54-acb4-926441e53ab7","block_type":"box","text":"brokerage.","page_number":175,"box":{"x":69,"y":272,"width":74,"height":11}},{"id":"61deac31-c103-46cc-a740-4d4ad62fb250","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":175,"box":{"x":102,"y":294,"width":781,"height":11}},{"id":"fd63b02b-85ff-4737-8129-8f1433c7855d","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":175,"box":{"x":68,"y":309,"width":810,"height":11}},{"id":"8ea9ce7b-4764-4f34-aa12-f60f7f9aa88a","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":175,"box":{"x":69,"y":324,"width":771,"height":12}},{"id":"ec14fe15-36ff-4c6e-b1f0-1a7db4ad3a7d","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":175,"box":{"x":69,"y":340,"width":818,"height":11}},{"id":"206c8833-e35c-45d1-a71f-ed201f9c9b63","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":175,"box":{"x":68,"y":355,"width":821,"height":11}},{"id":"392af26d-4c30-4cf7-8885-168b0884c616","block_type":"box","text":"Section 28(e).","page_number":175,"box":{"x":69,"y":370,"width":99,"height":11}},{"id":"0ecee340-f24a-45f1-9b57-245699bf8f65","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":175,"box":{"x":102,"y":392,"width":755,"height":9}},{"id":"01aab03f-1858-466d-b27b-8393c9dfdc0c","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":175,"box":{"x":69,"y":407,"width":828,"height":11}},{"id":"98855d98-383b-48c7-860e-45563b2ffe90","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":175,"box":{"x":69,"y":423,"width":799,"height":11}},{"id":"df359fe4-7dd4-4aad-a0f8-28a841c72f56","block_type":"box","text":"execute transactions for those mutual funds.","page_number":175,"box":{"x":69,"y":438,"width":319,"height":9}},{"id":"334eafb0-0fdf-4100-9fb0-acf56c29c3fa","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":175,"box":{"x":102,"y":460,"width":770,"height":12}},{"id":"120934e6-43d1-4204-b076-a07f552ec01a","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":175,"box":{"x":70,"y":475,"width":825,"height":12}},{"id":"f67cacf4-b3d8-4d35-9660-51087ed63430","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":175,"box":{"x":70,"y":491,"width":816,"height":11}},{"id":"a4348d9c-56a0-49e3-804d-3f440c26cee2","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":175,"box":{"x":69,"y":506,"width":805,"height":11}},{"id":"c366eef9-fbaa-4ef3-b4f1-72665bb7834b","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":175,"box":{"x":68,"y":521,"width":773,"height":11}},{"id":"30d5adab-dbe0-4c8b-8877-e8e12069a855","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":175,"box":{"x":69,"y":536,"width":798,"height":11}},{"id":"2940cdde-a974-4d3b-ba37-14a54419dabf","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":175,"box":{"x":70,"y":551,"width":812,"height":11}},{"id":"9515294f-9705-42b7-97dc-65941de523c7","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":175,"box":{"x":69,"y":566,"width":754,"height":11}},{"id":"ea80cfc1-a1f0-4151-8ed8-6136af492010","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":175,"box":{"x":69,"y":581,"width":540,"height":12}},{"id":"7c51841c-38e5-4302-96ab-d6efe96281c8","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":175,"box":{"x":102,"y":604,"width":798,"height":11}},{"id":"a1d78e17-4a75-4802-9f76-e8c438d9dde8","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":175,"box":{"x":68,"y":619,"width":597,"height":11}},{"id":"886b198c-bfbe-4395-8a26-c96f7f4c7b37","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":175,"box":{"x":102,"y":642,"width":802,"height":11}},{"id":"ef23557a-38ad-4251-932b-907e2000372e","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":175,"box":{"x":68,"y":657,"width":822,"height":11}},{"id":"216223eb-2f7e-4e78-a05b-04c90604d3bd","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":175,"box":{"x":69,"y":672,"width":804,"height":11}},{"id":"dbd34304-49f9-4039-9439-7a265dae3fe7","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":175,"box":{"x":69,"y":687,"width":832,"height":11}},{"id":"094dc531-d7af-423e-a75a-597bf061a34a","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":175,"box":{"x":69,"y":702,"width":762,"height":12}},{"id":"3b107cf1-c252-4d84-9122-9696c3350a29","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":175,"box":{"x":68,"y":717,"width":770,"height":12}},{"id":"b7b2671d-82bd-4ff0-8252-05dba7ea1f3f","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":175,"box":{"x":69,"y":732,"width":828,"height":11}},{"id":"bc5aa5a2-c21c-49e1-8400-ab154686d4db","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":175,"box":{"x":70,"y":748,"width":814,"height":11}},{"id":"857d3b8f-59a8-46ee-a6e8-bb58e78fd258","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":175,"box":{"x":69,"y":763,"width":825,"height":11}},{"id":"91bf6454-0ac6-4a35-a928-275e1958ff56","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":175,"box":{"x":69,"y":778,"width":645,"height":11}},{"id":"d601002a-d6bd-42bf-bbe7-7976efaae196","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":175,"box":{"x":102,"y":801,"width":797,"height":11}},{"id":"e4847c57-3b36-46a3-93c3-4bce794cb7d6","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":175,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"4b1e09d1-e8e8-4f1b-847c-0e5d41ed1cb6","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":175,"box":{"x":69,"y":831,"width":839,"height":11}},{"id":"2e1ddc6c-edba-4596-8e10-4444e5d8788b","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":175,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"9388af33-9f33-4873-b93e-52a6a0028d4e","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":175,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"7e7d329e-a270-4745-87bb-b9d97ebd0f42","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":175,"box":{"x":70,"y":876,"width":730,"height":11}},{"id":"e67f7dc7-ff7d-4377-8c77-dc1ad1b9126f","block_type":"box","text":"II-128","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fea372aa-a29e-46cf-bfb4-809a93b107eb","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b7163aa-296e-4c5f-bbc6-516937ad58ca","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":176,"box":{"x":102,"y":45,"width":800,"height":11}},{"id":"6616aa84-ab2d-460a-b18d-c94ea50e6574","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":176,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"bb4288fe-3b08-4662-a1c2-03a78ec0eb84","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":176,"box":{"x":70,"y":75,"width":812,"height":11}},{"id":"d866f524-70a7-4873-a6a7-71e5547b44d4","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":176,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"9ec6fb37-fb79-45c8-85eb-0bf08ed775bb","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":176,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"d9a1597f-41e6-4bb5-9d6a-3e1efe5cbb99","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":176,"box":{"x":68,"y":120,"width":817,"height":11}},{"id":"b4e836cb-27d5-4066-a8ef-54563de2b7d0","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":176,"box":{"x":69,"y":136,"width":802,"height":11}},{"id":"d6052681-9a09-4b72-9ac8-42c88d955c16","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":176,"box":{"x":69,"y":150,"width":700,"height":12}},{"id":"2e143807-52a8-4b17-9fb0-e56fd9faacc0","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":176,"box":{"x":102,"y":173,"width":756,"height":11}},{"id":"400faae5-7e94-423c-9622-b75d3861ad23","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":176,"box":{"x":68,"y":188,"width":804,"height":12}},{"id":"140bacb3-f4de-43d3-b8eb-a96392426bea","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":176,"box":{"x":69,"y":203,"width":766,"height":12}},{"id":"179ebcb5-2cf4-4df2-9c54-e95c7d50d8d0","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":176,"box":{"x":101,"y":226,"width":780,"height":11}},{"id":"c4b8ded0-fc8d-4ad5-848e-75737f663462","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":176,"box":{"x":69,"y":241,"width":826,"height":11}},{"id":"7bbab878-1d29-4d90-9407-8af871bb446c","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":176,"box":{"x":69,"y":256,"width":806,"height":11}},{"id":"c5da7802-eca7-473d-b1d6-7554603b1003","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":176,"box":{"x":69,"y":271,"width":776,"height":12}},{"id":"499943c4-a51f-48fb-99a7-ac1e777bb3f2","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":176,"box":{"x":70,"y":286,"width":800,"height":12}},{"id":"53b2d669-9b25-47f9-895c-ab67a99a77d6","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":176,"box":{"x":69,"y":302,"width":352,"height":11}},{"id":"587f9743-bbd8-43b1-9ed3-282fee6b859a","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":176,"box":{"x":102,"y":324,"width":800,"height":12}},{"id":"de284cda-e411-418e-896f-cfed9060a782","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":176,"box":{"x":69,"y":339,"width":824,"height":12}},{"id":"f8d305b6-25a9-406f-8c26-684f6950aba8","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":176,"box":{"x":69,"y":355,"width":828,"height":11}},{"id":"3f98c444-ef7a-42f8-b1cf-e7010ce8a76c","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":176,"box":{"x":68,"y":370,"width":788,"height":11}},{"id":"96321e3b-08dc-4fa5-aba8-c2d8dddd1a59","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":176,"box":{"x":69,"y":385,"width":759,"height":11}},{"id":"a02ee021-4e31-43e2-8e5e-22ef31c8a0f7","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":176,"box":{"x":69,"y":400,"width":780,"height":11}},{"id":"bde8e0a4-2b7a-4724-9112-41f1e4060318","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":176,"box":{"x":69,"y":415,"width":777,"height":11}},{"id":"5f9bad90-563e-4522-b9ab-e5d5204f370c","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":176,"box":{"x":69,"y":430,"width":788,"height":11}},{"id":"7faa02d6-a3bd-4cb5-bd7d-89430586e984","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":176,"box":{"x":69,"y":446,"width":811,"height":11}},{"id":"4648af9f-af07-4335-a214-36607ba2f788","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":176,"box":{"x":69,"y":460,"width":829,"height":12}},{"id":"23a1d807-4b38-4de2-9d79-2aeb2733da84","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":176,"box":{"x":68,"y":475,"width":808,"height":12}},{"id":"aa212dcf-8dc4-4ea3-931e-d21539240d87","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":176,"box":{"x":70,"y":491,"width":832,"height":11}},{"id":"a2481911-9b78-4a51-81ad-b085600a14af","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":176,"box":{"x":70,"y":506,"width":836,"height":11}},{"id":"86726211-7ada-4f5d-8c1b-d37377be5e59","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":176,"box":{"x":69,"y":521,"width":613,"height":11}},{"id":"f4df5e80-cfd2-4a5c-843c-b4e55d1a33a1","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":176,"box":{"x":102,"y":544,"width":802,"height":11}},{"id":"0eba0600-24ca-41e8-ab70-ca3874cf4e80","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":176,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"f171331d-c6c1-4f07-b632-f59f2e3bb84c","block_type":"box","text":"accounts and compliance constraints.","page_number":176,"box":{"x":69,"y":574,"width":269,"height":11}},{"id":"fce7be61-5b16-4fac-8d79-1f8cdfc3f467","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":176,"box":{"x":102,"y":596,"width":736,"height":12}},{"id":"abcc7695-1527-4a9a-8efb-265551e0abde","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":176,"box":{"x":69,"y":612,"width":808,"height":11}},{"id":"f4590970-ad72-458d-a719-5dd5758e666e","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":176,"box":{"x":69,"y":627,"width":821,"height":11}},{"id":"a6a731fb-06d4-4c70-8d9f-e9ffccee331c","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":176,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"27342439-e9cc-4b2f-9a80-bd53ef8996ce","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":176,"box":{"x":70,"y":657,"width":783,"height":11}},{"id":"192f3210-2fac-4866-8938-7d08691997c8","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":176,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"c99c221b-6b8f-43a2-a169-d9d939d3112f","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":176,"box":{"x":69,"y":687,"width":831,"height":11}},{"id":"1aca56fb-ce44-4592-a78c-f4faf24c374e","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":176,"box":{"x":69,"y":702,"width":828,"height":11}},{"id":"f1d79c52-d5ff-42b6-b71c-19cb0231aa59","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":176,"box":{"x":68,"y":717,"width":839,"height":12}},{"id":"c4cfcc23-a899-4e27-9e4c-015281d93a4e","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":176,"box":{"x":69,"y":732,"width":835,"height":12}},{"id":"ff5d4cd0-c06f-4d17-b3f3-8d2d6db804f9","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":176,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"dbc26e58-30d4-4011-9098-8098a504da6f","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":176,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"e804fcec-3f1b-4c8a-971b-7de85e298be7","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":176,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"42b569f4-1ffd-476a-b07b-222be31b9144","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":176,"box":{"x":69,"y":793,"width":799,"height":11}},{"id":"7c75632c-c2f1-4607-bff1-ca074f43aa0a","block_type":"box","text":"clients may be used as well.","page_number":176,"box":{"x":69,"y":808,"width":200,"height":11}},{"id":"8e0920db-b88a-4a00-b72e-0b753df25e47","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":176,"box":{"x":102,"y":831,"width":789,"height":11}},{"id":"586b069f-2c12-4da7-9d3d-c94794b76131","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":176,"box":{"x":68,"y":846,"width":815,"height":11}},{"id":"cb2ea243-00a5-488c-8d1f-bfb84ac25023","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":176,"box":{"x":69,"y":861,"width":835,"height":11}},{"id":"bed550e1-5017-49ef-b702-fd9bd862858c","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":176,"box":{"x":68,"y":876,"width":833,"height":11}},{"id":"7499b96e-886a-4dc2-a683-61916c88c11d","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":176,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"1db9f253-8bc9-4bde-b598-1e8521ac05a5","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":176,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"b634d015-de9f-401b-be0a-3df394c88114","block_type":"box","text":"II-129","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a2fd4e9a-c33b-443c-a7cf-b4210d40b086","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8186040f-2753-4303-9e6b-c36ca7d08224","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":177,"box":{"x":69,"y":45,"width":806,"height":11}},{"id":"2cfbe99c-6cf5-4df1-ba0d-86551412a855","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":177,"box":{"x":69,"y":60,"width":814,"height":11}},{"id":"a89df2a7-b273-47eb-935c-068e295b6415","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":177,"box":{"x":69,"y":75,"width":836,"height":9}},{"id":"90c4f6a8-173a-45e9-94c8-012162f7e6e4","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":177,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"1adfb91a-ffc7-4867-abe8-12dabb94516d","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":177,"box":{"x":69,"y":105,"width":467,"height":11}},{"id":"d59cc169-797e-4c28-98f6-f92799ea4b17","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":177,"box":{"x":102,"y":128,"width":741,"height":11}},{"id":"46c7c0d7-5482-49c2-ada3-c1c0b25b73ea","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":177,"box":{"x":69,"y":143,"width":721,"height":11}},{"id":"269c4568-3c5e-40ca-89f3-2c5e02f8eec4","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":177,"box":{"x":69,"y":158,"width":824,"height":11}},{"id":"c4ce7467-a391-4093-91b9-5b122f68b88f","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":177,"box":{"x":68,"y":173,"width":795,"height":11}},{"id":"0bd72cf1-77c6-4020-a49c-e7a805172af2","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":177,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"5bef44ea-e130-4fa5-888d-636b130ebafb","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":177,"box":{"x":69,"y":203,"width":783,"height":12}},{"id":"0c71195d-587c-490d-86b5-f56258c15e0a","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":177,"box":{"x":70,"y":218,"width":796,"height":12}},{"id":"f2c892ef-a401-421a-846e-eb2961004d01","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":177,"box":{"x":69,"y":234,"width":821,"height":11}},{"id":"7451902b-d4e8-4f67-9489-40c9345befa4","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":177,"box":{"x":68,"y":249,"width":819,"height":11}},{"id":"94be19bd-3f42-4c95-9dfc-43fbcf145a96","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":177,"box":{"x":70,"y":264,"width":771,"height":11}},{"id":"fb0cf7dd-e426-47f0-9ad0-0948eefd1ebf","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":177,"box":{"x":68,"y":279,"width":815,"height":11}},{"id":"0e12f6f7-358c-435d-82f0-f474ff3b0971","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":177,"box":{"x":68,"y":294,"width":835,"height":11}},{"id":"9429c550-9fd5-4a4a-9eb0-8a137cb632bd","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":177,"box":{"x":68,"y":309,"width":817,"height":11}},{"id":"d97d4aad-0fc7-496b-9c25-abdfe9a85d50","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":177,"box":{"x":68,"y":324,"width":823,"height":11}},{"id":"349fc479-6d65-4b9f-a6fb-8b406045248b","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":177,"box":{"x":69,"y":339,"width":803,"height":12}},{"id":"9cce09a6-be68-4c96-a3a7-207c3c18894b","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":177,"box":{"x":101,"y":362,"width":767,"height":11}},{"id":"6b42a6a7-4449-4cf7-ae47-dc1a19fbdb5e","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":177,"box":{"x":69,"y":377,"width":826,"height":11}},{"id":"b2d14143-66d0-4611-ae54-92605586ed68","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":177,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"72eb1aac-8761-4f19-8db0-8f1cb42e0c07","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":177,"box":{"x":70,"y":407,"width":833,"height":12}},{"id":"cf0dea83-db21-4216-8da8-38474de1d6f9","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":177,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"f339b23d-c8b3-4f01-a188-14c510ddb125","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":177,"box":{"x":101,"y":445,"width":786,"height":11}},{"id":"fd57f456-f940-47d2-838c-d13bc4755acb","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":177,"box":{"x":69,"y":460,"width":814,"height":12}},{"id":"cd09969c-7b88-4ff8-a62d-4b22c174a5ec","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":177,"box":{"x":69,"y":476,"width":751,"height":11}},{"id":"00f2020c-f3cc-43a0-8c24-c1f1974f1a83","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":177,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"ca025d5e-de49-4634-a16f-e52930eecc60","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":177,"box":{"x":68,"y":506,"width":799,"height":11}},{"id":"64bd75aa-1e76-42bd-afcd-4039d7b4f8bd","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":177,"box":{"x":69,"y":521,"width":834,"height":11}},{"id":"de9a9ea6-ce41-48cc-8c2e-ee4ae20ef3d1","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":177,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"39715032-a631-4657-b81a-54d28a2175f6","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":177,"box":{"x":70,"y":551,"width":812,"height":11}},{"id":"5d66b92b-3eea-4df1-811b-6feba8c57a5f","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":177,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"b2ac81a6-e418-4f7f-9095-24a21bf1e9d4","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":177,"box":{"x":69,"y":581,"width":805,"height":12}},{"id":"9906e0ad-7a8b-437c-bb68-f7d0d1d15596","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":177,"box":{"x":69,"y":596,"width":840,"height":12}},{"id":"3a74806f-d9b9-4d61-9196-c70724ac00d6","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":177,"box":{"x":69,"y":612,"width":815,"height":11}},{"id":"ce7b968a-8265-4b7b-b1ef-dedbe4cc1a56","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":177,"box":{"x":69,"y":627,"width":713,"height":11}},{"id":"0f4e8541-462c-48ab-8815-3772cd1a65d5","block_type":"box","text":"Portfolio Turnover","page_number":177,"box":{"x":69,"y":657,"width":129,"height":9}},{"id":"c42ce871-a39d-4fdc-80f1-e77c5c1fade5","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":177,"box":{"x":101,"y":680,"width":798,"height":11}},{"id":"26acd1ab-7c20-4c0d-9a1a-c3e1cdb7b3a9","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":177,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"306c756a-df09-4595-89b7-57bccdcda543","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":177,"box":{"x":68,"y":710,"width":814,"height":11}},{"id":"03097af7-129f-46e9-91b9-c4eff9fe376d","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":177,"box":{"x":68,"y":725,"width":777,"height":11}},{"id":"93a4a5db-434e-4493-b1aa-f7354622ce4d","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":177,"box":{"x":69,"y":740,"width":818,"height":11}},{"id":"4a061674-e5bf-4fd8-85d5-6fab9357843f","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":177,"box":{"x":69,"y":755,"width":519,"height":11}},{"id":"e6d520d4-ed81-4116-8df0-8905e438ebbc","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":177,"box":{"x":396,"y":785,"width":186,"height":9}},{"id":"2cc8d2db-ef60-4a1a-b5af-4df098b73ad9","block_type":"box","text":"Dividends","page_number":177,"box":{"x":69,"y":815,"width":69,"height":9}},{"id":"c7e21b74-7789-462a-b546-23455af83fcc","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":177,"box":{"x":102,"y":838,"width":776,"height":11}},{"id":"9a620faa-21c7-47cc-842a-9f846eb86a0d","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":177,"box":{"x":70,"y":853,"width":795,"height":11}},{"id":"9cc030bd-5ef2-465a-b8d5-0c7f6e47b110","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":177,"box":{"x":69,"y":868,"width":837,"height":11}},{"id":"cd0e0262-0e1d-4808-814f-4e5c46d1e7af","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":177,"box":{"x":69,"y":883,"width":836,"height":11}},{"id":"eb033bbf-e2c0-402f-80f7-d3942d435382","block_type":"box","text":"II-130","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"53789594-f916-47b9-bcc5-bad1848b3ab7","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5f25f4f-2773-4fce-983a-baeddbd46c27","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":178,"box":{"x":70,"y":45,"width":822,"height":11}},{"id":"180c3e97-8594-4a77-aeba-bd463e1da75f","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":178,"box":{"x":69,"y":60,"width":739,"height":11}},{"id":"ef9291ce-bff2-4436-b25f-4da5a61b32c0","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":178,"box":{"x":102,"y":82,"width":773,"height":12}},{"id":"5f0f9ee6-2843-462c-a8ba-7ae5398f1352","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":178,"box":{"x":70,"y":98,"width":819,"height":11}},{"id":"e4862a66-15df-4f0c-a993-e112daa98e91","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":178,"box":{"x":69,"y":113,"width":807,"height":11}},{"id":"fcefd6cd-a634-4f39-868f-1de42fea60a9","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":178,"box":{"x":68,"y":128,"width":800,"height":11}},{"id":"93dffdf4-cada-41f7-bc96-17ba7d75a3d6","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":178,"box":{"x":69,"y":143,"width":801,"height":11}},{"id":"1578d1a3-46aa-477b-a7a1-857fb5e03a77","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":178,"box":{"x":69,"y":158,"width":783,"height":11}},{"id":"6f3cfe2a-47c2-4d59-95c9-5602d595c8c4","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":178,"box":{"x":69,"y":173,"width":820,"height":11}},{"id":"adc9fbcf-87b4-48c1-bd85-8c789690287b","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":178,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"48b82d08-1fc0-4957-82ba-a135f29195ee","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":178,"box":{"x":69,"y":203,"width":834,"height":12}},{"id":"e5424e17-9c40-4e59-92d9-76f2c3da41b9","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":178,"box":{"x":68,"y":218,"width":826,"height":11}},{"id":"159c6301-b0f9-4772-90ec-8f6d4cfaddf9","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":178,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"a62019f7-5ba1-47a0-8e44-a0aafae4be7d","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":178,"box":{"x":68,"y":249,"width":461,"height":11}},{"id":"3867018f-ead2-4762-ad4f-466714de1b34","block_type":"box","text":"Taxes","page_number":178,"box":{"x":68,"y":279,"width":42,"height":9}},{"id":"8b5486d5-5791-47ff-8097-a265ad4cff81","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":178,"box":{"x":102,"y":302,"width":732,"height":11}},{"id":"8c286117-2ddc-4fcf-95cd-1130b949828c","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":178,"box":{"x":69,"y":317,"width":825,"height":11}},{"id":"e1caeba0-b199-405d-85da-d50fde9d3643","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":178,"box":{"x":70,"y":332,"width":817,"height":11}},{"id":"6298f2bd-9f4d-47e8-b19d-99c865ee3ae2","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":178,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"f06aec49-e4a4-4efc-81d6-5123ba86c58b","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":178,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"acfeef6c-7b38-4ba9-b906-cb5bd4cb6de3","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":178,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"4cae61c6-1ad2-40c2-a8c9-8ff5b38fb2ca","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":178,"box":{"x":69,"y":392,"width":831,"height":11}},{"id":"ae49e336-7fb0-4593-af00-0a2e43220700","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":178,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"7aa926d5-c667-4df8-aca6-763ed1a8dce3","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":178,"box":{"x":69,"y":423,"width":824,"height":11}},{"id":"54cc7ac3-2434-44c7-81ef-7d8441f4a55f","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":178,"box":{"x":69,"y":438,"width":739,"height":11}},{"id":"00ec72d0-ae18-45ad-a654-a7aa9e1c657a","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":178,"box":{"x":101,"y":460,"width":792,"height":12}},{"id":"013fa8f6-6ce8-40db-9d54-348c43bbda3a","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":178,"box":{"x":68,"y":475,"width":819,"height":12}},{"id":"7affb35c-3a0b-4cb8-b6a7-e966484289c5","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":178,"box":{"x":70,"y":491,"width":830,"height":11}},{"id":"23e881d5-329d-4f70-b02e-b99f50c5db87","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":178,"box":{"x":68,"y":506,"width":744,"height":11}},{"id":"b1bc240b-4867-4ef7-a21a-121e4632e43f","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":178,"box":{"x":69,"y":521,"width":835,"height":11}},{"id":"16e9f153-821f-4a88-8c2f-9e6f1bac3967","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":178,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"f0c8401b-a444-4a52-ad1b-ce134c3a369d","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":178,"box":{"x":69,"y":551,"width":767,"height":11}},{"id":"d3ab5976-2699-4511-a522-73ac253945b7","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":178,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"a963abfb-e9e2-486a-9cd6-402f3882ce5a","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":178,"box":{"x":68,"y":581,"width":521,"height":12}},{"id":"584b0ca4-a7d1-4b8f-8253-34d9da2e471e","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":178,"box":{"x":102,"y":604,"width":798,"height":11}},{"id":"77b62aa2-fe57-4f78-906f-0088f42df08c","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":178,"box":{"x":69,"y":619,"width":762,"height":11}},{"id":"c8b1a0a0-83a8-441f-8e1c-335463bafe66","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":178,"box":{"x":70,"y":634,"width":789,"height":11}},{"id":"e8d71aed-3ad9-4ff5-baac-0ba5e0973674","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":178,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"b835766e-07a3-4687-96b1-703ad5b7bec4","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":178,"box":{"x":69,"y":664,"width":831,"height":12}},{"id":"02da260d-e45a-4cc2-ac78-c972689479b2","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":178,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"7d6d5518-fadd-4e38-8298-6a7f33148775","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":178,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"78e78656-776f-4f3a-99ed-31a0686be242","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":178,"box":{"x":69,"y":710,"width":811,"height":11}},{"id":"43ca31b2-37da-4bb8-b948-f2641a9ea901","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":178,"box":{"x":70,"y":725,"width":813,"height":11}},{"id":"5c14b82a-8b1c-44df-83bb-5bfefc9ac663","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":178,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"e04cb4c2-0865-436e-8a32-5991cd11a164","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":178,"box":{"x":69,"y":755,"width":790,"height":11}},{"id":"5e4c69a5-5cbf-4c95-b088-0bfee0e3e273","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":178,"box":{"x":69,"y":770,"width":771,"height":12}},{"id":"ecd70b62-be1a-43e6-96ff-0f8afbd448da","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":178,"box":{"x":69,"y":785,"width":512,"height":11}},{"id":"553123e1-17c5-49e9-a027-5e11fb5e794c","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":178,"box":{"x":101,"y":808,"width":759,"height":11}},{"id":"47d2244e-c607-491e-85db-b0ecadbbc6d6","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":178,"box":{"x":69,"y":823,"width":813,"height":12}},{"id":"ae324ddb-e98f-4eb0-ba2b-e018565caf43","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":178,"box":{"x":69,"y":838,"width":830,"height":12}},{"id":"b334114b-dabf-4f3b-a023-0433f1256d90","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":178,"box":{"x":68,"y":853,"width":832,"height":12}},{"id":"823ecbfb-bb87-4457-b6d9-ab69c6fcd857","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":178,"box":{"x":70,"y":869,"width":825,"height":11}},{"id":"bed3c5dc-2dd3-461c-8f6d-a9d7ea011893","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":178,"box":{"x":70,"y":884,"width":810,"height":11}},{"id":"84914062-dfa9-4aaa-a199-3c5817e2aad1","block_type":"box","text":"II-131","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aac2e762-fbc4-4554-be5a-8bbe04002537","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20614d47-facf-434b-a1f1-faf40b252c27","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":179,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"febf3ac6-a436-4f64-9f2d-2bd4ff9d2519","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":179,"box":{"x":68,"y":60,"width":666,"height":11}},{"id":"de69526a-3583-4a65-95c6-e1ecd6441230","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":179,"box":{"x":102,"y":82,"width":790,"height":12}},{"id":"3b887f6f-235a-4496-a0cf-918d5986505d","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":179,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"5e8fd627-c7c6-4032-85c9-b6b74046b9bf","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":179,"box":{"x":69,"y":113,"width":770,"height":11}},{"id":"7dfc50c5-5a46-4c69-bebc-9f5137d7fa9f","block_type":"box","text":"limitation.","page_number":179,"box":{"x":70,"y":128,"width":68,"height":9}},{"id":"e9dacd0b-4261-4fae-bf2c-997f781af203","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":179,"box":{"x":102,"y":150,"width":803,"height":12}},{"id":"eb26ff32-b0ca-4fd3-858d-566e97da291f","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":179,"box":{"x":68,"y":166,"width":790,"height":11}},{"id":"49046e20-0c01-4f19-802e-a0fa519f3a69","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":179,"box":{"x":70,"y":181,"width":815,"height":11}},{"id":"695cdedf-400c-49ab-a9e3-7c8dc96bb67d","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":179,"box":{"x":68,"y":196,"width":748,"height":11}},{"id":"3a933996-6653-4b0f-91a9-19079a5c700a","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":179,"box":{"x":69,"y":211,"width":811,"height":11}},{"id":"0087b43a-3f85-4a2e-8ad6-cbc5a8d08aa3","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":179,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"727b642a-cd2f-4085-901d-2717cc4e2b4e","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":179,"box":{"x":70,"y":241,"width":785,"height":11}},{"id":"dee469bc-c961-4851-8fdb-9a56f501a522","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":179,"box":{"x":69,"y":256,"width":795,"height":12}},{"id":"80dd8381-ecf7-495a-967e-73d50ab1cff5","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":179,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"1f13a857-1af1-4ef4-99cc-a920247c06ce","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":179,"box":{"x":68,"y":287,"width":814,"height":11}},{"id":"70e0c0a7-e927-4ead-b754-69668f3d4149","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":179,"box":{"x":68,"y":302,"width":822,"height":11}},{"id":"9e78858c-53a9-4479-889f-d1e41fdfd27b","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":179,"box":{"x":68,"y":317,"width":751,"height":11}},{"id":"04d892a6-eb90-4c7b-b6a3-e337802424b0","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":179,"box":{"x":69,"y":332,"width":823,"height":11}},{"id":"307b320b-c901-4daa-afba-76d408108fb1","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":179,"box":{"x":68,"y":347,"width":817,"height":11}},{"id":"be8e707c-af8f-46cb-9953-e4cdf13b1a45","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":179,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"99bd5fc9-3f58-4703-b8ca-80e2aa30b94f","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":179,"box":{"x":69,"y":377,"width":825,"height":11}},{"id":"70867bf2-7db3-41f9-b8b9-309083b83708","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":179,"box":{"x":68,"y":392,"width":789,"height":12}},{"id":"e48db016-f932-41d9-addc-77b6f06ce1be","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":179,"box":{"x":69,"y":407,"width":836,"height":12}},{"id":"84800507-316c-4125-b629-2a71c87ea220","block_type":"box","text":"constitute “qualified dividend income.”","page_number":179,"box":{"x":69,"y":423,"width":275,"height":11}},{"id":"94518f89-c6f7-42a5-b206-05ca72811545","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":179,"box":{"x":101,"y":445,"width":806,"height":11}},{"id":"b0d29e88-28ca-4cff-ab28-a661e8657460","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":179,"box":{"x":70,"y":460,"width":368,"height":11}},{"id":"97b15c24-d9e5-4c43-9f72-199b9f39fd62","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":179,"box":{"x":101,"y":483,"width":772,"height":11}},{"id":"9f249977-5bda-4f0f-a65e-093dede8083b","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":179,"box":{"x":69,"y":498,"width":811,"height":11}},{"id":"923202d8-b2e1-443a-8426-8a9f7cd20c65","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":179,"box":{"x":70,"y":514,"width":745,"height":11}},{"id":"6f87819d-9fca-4a48-aedb-e72099100bb2","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":179,"box":{"x":69,"y":528,"width":795,"height":12}},{"id":"adee952a-c39e-4d38-b941-3962519fe5c2","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":179,"box":{"x":70,"y":543,"width":838,"height":12}},{"id":"f7cfc6f0-b906-4017-8524-7db904cb4da7","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":179,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"bb58dee2-7042-483a-982f-b8fe4bebff61","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":179,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"ab2c1dc3-ecdc-47c2-8a27-21965e6a53dc","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":179,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"5353d2f2-b4c6-43a2-ab8e-98cc5244ba2e","block_type":"box","text":"against their taxes.","page_number":179,"box":{"x":69,"y":604,"width":135,"height":11}},{"id":"98c4474c-a1d7-42cc-a315-d7133c550b2f","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":179,"box":{"x":102,"y":627,"width":783,"height":11}},{"id":"718ff02d-2486-428a-9ca4-09187b54f379","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":179,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"86b29c2e-688a-4d87-848a-0171bde52dae","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":179,"box":{"x":69,"y":657,"width":769,"height":11}},{"id":"88bdcdb5-ee92-4872-ac6c-9be289268414","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":179,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"0726b4ed-ef56-450a-84b4-734f0b15445e","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":179,"box":{"x":69,"y":687,"width":824,"height":11}},{"id":"05b2e162-1f7a-42f2-86bf-63dfd680b908","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":179,"box":{"x":68,"y":702,"width":831,"height":12}},{"id":"5dcde5d1-9297-47df-8643-2a276df4b780","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":179,"box":{"x":68,"y":717,"width":817,"height":12}},{"id":"8a312aa6-c153-4bff-bb82-194b5fbd94df","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":179,"box":{"x":70,"y":732,"width":797,"height":12}},{"id":"3ab1417a-7b31-4f7b-9f43-015ac7b349a6","block_type":"box","text":"dividends received by the shareholder.","page_number":179,"box":{"x":69,"y":748,"width":272,"height":11}},{"id":"d721e56c-cbeb-4ac2-8466-c0d6390f01e3","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":179,"box":{"x":102,"y":770,"width":792,"height":12}},{"id":"1012fc47-aed5-43bd-a696-8f605007be0d","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":179,"box":{"x":69,"y":785,"width":835,"height":12}},{"id":"d10f9b0e-786c-4275-8931-62161a6feeee","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":179,"box":{"x":68,"y":801,"width":809,"height":11}},{"id":"8b7a556b-8723-46ca-89c9-ce373ed6e318","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":179,"box":{"x":68,"y":816,"width":819,"height":11}},{"id":"18b32442-83af-499a-bbe7-ff873411aa8e","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":179,"box":{"x":69,"y":831,"width":839,"height":11}},{"id":"0b37d476-52ab-48e9-b9d0-6597d19f2e7d","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":179,"box":{"x":69,"y":846,"width":794,"height":11}},{"id":"0b2bbabf-14f6-4bd4-a6d4-8975e8b37406","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":179,"box":{"x":69,"y":861,"width":804,"height":11}},{"id":"6e5596a2-6703-4597-b162-ca1e3462e0f0","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":179,"box":{"x":70,"y":876,"width":797,"height":11}},{"id":"19b32e4e-59a8-4b8b-9044-4b29126621a5","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":179,"box":{"x":69,"y":891,"width":810,"height":12}},{"id":"0ec5b2ca-7077-4454-90da-bc5ce4dce0a2","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":179,"box":{"x":68,"y":906,"width":826,"height":12}},{"id":"6d18ef14-c85f-4f05-aea9-4cffc6fd7289","block_type":"box","text":"II-132","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a732077a-57dd-4b91-9db1-28aef3a1b9ff","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b551d40f-c4ca-46f8-abeb-d2b73e76c1c0","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":180,"box":{"x":70,"y":45,"width":772,"height":11}},{"id":"12e25431-598d-4917-b4e7-ad8b887717c1","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":180,"box":{"x":70,"y":60,"width":795,"height":11}},{"id":"b05f3bbf-8015-426b-adbe-b32a71979314","block_type":"box","text":"taxable year.","page_number":180,"box":{"x":68,"y":75,"width":89,"height":11}},{"id":"dddff7dc-845f-425f-972d-31dce7f15c0c","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":180,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"1c38b32b-9ed5-4ae7-bdc6-1a87b89f557b","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":180,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"2f49fa64-25a3-40e0-8d48-7e6752556361","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":180,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"3ff3eca3-344c-4f07-931e-260b7e981d7f","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":180,"box":{"x":69,"y":143,"width":362,"height":11}},{"id":"60a3f20a-d0c3-44bc-bd00-e07ab097dac8","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":180,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"dd8b9fe7-76eb-4d14-b85c-7f65a4dc1ab2","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":180,"box":{"x":69,"y":181,"width":824,"height":11}},{"id":"cba6e40b-ea1f-425b-a9d0-52f60512b558","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":180,"box":{"x":69,"y":196,"width":797,"height":11}},{"id":"18ecfafb-9e52-4a87-849e-c4db69df828b","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":180,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"d9f6d69b-8c5e-45bf-88bd-9c174742de62","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":180,"box":{"x":70,"y":226,"width":646,"height":11}},{"id":"7f5d34dc-3169-4770-b156-c030f4f2667b","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":180,"box":{"x":101,"y":249,"width":762,"height":11}},{"id":"bdef0092-b554-42cb-8f70-6a41508abc65","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":180,"box":{"x":69,"y":264,"width":836,"height":11}},{"id":"1401233a-39ac-423d-87b1-bba9e0b5d3c9","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":180,"box":{"x":69,"y":279,"width":822,"height":11}},{"id":"a4198f49-d27b-4e10-9772-66280069f1ab","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":180,"box":{"x":68,"y":294,"width":838,"height":11}},{"id":"f8e9bc13-778d-4478-b472-329557d07948","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":180,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"89866335-c9d5-474e-a87a-d51b240a5f1c","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":180,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"d5cc5746-a062-45f8-96bf-bc540b31a96d","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":180,"box":{"x":69,"y":339,"width":822,"height":12}},{"id":"a34b8c87-bdaa-4896-a9e0-b61e7540b815","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":180,"box":{"x":70,"y":355,"width":829,"height":11}},{"id":"0e0b9148-e2fa-414d-9e6c-fde4c1cb357e","block_type":"box","text":"special tax rules that apply to their investments.","page_number":180,"box":{"x":69,"y":370,"width":343,"height":11}},{"id":"daaf851c-cca0-4731-8208-b9aa9c043fd9","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":180,"box":{"x":101,"y":392,"width":807,"height":12}},{"id":"67cb8144-a791-4120-895b-b15f1ab9cc9f","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":180,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"d942fa4c-fc7c-4665-b312-3497ed45f6e0","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":180,"box":{"x":69,"y":423,"width":799,"height":11}},{"id":"00de4f8f-9f20-4f6c-8ac3-8629bbfbe312","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":180,"box":{"x":69,"y":438,"width":534,"height":11}},{"id":"5dcd8719-6d47-4911-b046-f8f757ef08a2","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":180,"box":{"x":101,"y":460,"width":792,"height":12}},{"id":"50901df5-93bf-44ac-ba61-4afbabf6d49b","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":180,"box":{"x":69,"y":475,"width":800,"height":12}},{"id":"120db57b-b0c4-4f26-b30d-38131447483c","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":180,"box":{"x":70,"y":491,"width":828,"height":11}},{"id":"4e192115-b59c-4213-af5a-d0bced4684e7","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":180,"box":{"x":70,"y":506,"width":824,"height":11}},{"id":"8a6cd56b-596d-4357-8fc6-286fc8dd481f","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":180,"box":{"x":69,"y":521,"width":816,"height":11}},{"id":"eb409b11-4b55-4821-8958-e9134dc40008","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":180,"box":{"x":69,"y":536,"width":797,"height":11}},{"id":"f1364ba6-7f72-471f-8574-f53c3c4db207","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":180,"box":{"x":68,"y":551,"width":840,"height":11}},{"id":"13701589-8bdc-40ad-8e37-a890d8ac8122","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":180,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"d0a53cf9-286f-42be-9fa7-d8e1d4ad8373","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":180,"box":{"x":69,"y":581,"width":797,"height":11}},{"id":"694d198d-bf4b-40db-8eaa-2d65372806bb","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":180,"box":{"x":69,"y":596,"width":821,"height":12}},{"id":"6500c9a7-20bc-4aee-aabc-4d71282629fd","block_type":"box","text":"redemption of such shares.","page_number":180,"box":{"x":69,"y":612,"width":195,"height":11}},{"id":"b85dc64c-421f-4712-92b0-54bb371c5403","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":180,"box":{"x":101,"y":634,"width":780,"height":12}},{"id":"ec6924e6-11f9-423e-bd77-fe3d9d447d26","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":180,"box":{"x":70,"y":649,"width":814,"height":12}},{"id":"e6fdd449-2154-44d5-8bd8-9a99f8f4b479","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":180,"box":{"x":70,"y":664,"width":810,"height":12}},{"id":"acc662ae-4ca4-4d16-ba97-8c142f0b1972","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":180,"box":{"x":69,"y":680,"width":793,"height":11}},{"id":"ab5b248a-0f12-4c6c-a976-e0ee058398d2","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":180,"box":{"x":101,"y":702,"width":770,"height":12}},{"id":"fa43885b-a760-4b3b-b290-8c627948e43d","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":180,"box":{"x":69,"y":718,"width":817,"height":11}},{"id":"5325841d-9a1b-47e3-8a91-08f7348536cc","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":180,"box":{"x":69,"y":732,"width":833,"height":12}},{"id":"20883e74-dffc-4440-9075-dca139deb30b","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":180,"box":{"x":68,"y":748,"width":305,"height":11}},{"id":"5bf53046-dcf7-4276-a6dc-6be762b2c289","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":180,"box":{"x":102,"y":770,"width":799,"height":11}},{"id":"50ee382b-8382-4de2-bc17-2cdaf4e15ad9","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":180,"box":{"x":69,"y":785,"width":791,"height":12}},{"id":"2c2d0386-b5e8-4d3c-8d08-d20686ebe502","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":180,"box":{"x":70,"y":801,"width":826,"height":11}},{"id":"42776ea1-dab3-4046-a5e2-22aa3cca981a","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":180,"box":{"x":69,"y":816,"width":803,"height":11}},{"id":"aa24c87a-5a94-4e7e-b598-846251b0faea","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":180,"box":{"x":70,"y":831,"width":825,"height":11}},{"id":"3aa0d710-5faf-4d0a-960b-c2661fe41574","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":180,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"99bfa803-9f48-4b53-8a26-2d3daf686103","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":180,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"4ca9cf12-865c-42a8-b03c-2f2550e06780","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":180,"box":{"x":69,"y":876,"width":808,"height":11}},{"id":"d2569e64-2b40-4f91-8208-9499b87d3f09","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":180,"box":{"x":69,"y":891,"width":787,"height":11}},{"id":"9a5bb7e6-8088-4b40-ac5f-97300ed59d84","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":180,"box":{"x":69,"y":906,"width":816,"height":12}},{"id":"6d2d8f41-4b39-4465-b947-014a841e6f14","block_type":"box","text":"II-133","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3272a257-6805-4c80-bc87-71aeea0be28d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"771699ad-b280-4cb5-ad80-6e358d3d5445","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":181,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"5b334f5e-bed2-43e4-ae36-9caece26de4b","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":181,"box":{"x":68,"y":60,"width":542,"height":11}},{"id":"4401bc81-68f0-4dac-9ca3-cf058337d9df","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":181,"box":{"x":102,"y":83,"width":744,"height":11}},{"id":"46fd7b07-aff1-4a88-a987-da57bda07331","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":181,"box":{"x":69,"y":98,"width":751,"height":11}},{"id":"2326a392-e983-4475-a44b-93682cf55efc","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":181,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"ad59a4e2-f811-47d4-b16e-538fa21c4a1b","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":181,"box":{"x":69,"y":128,"width":823,"height":11}},{"id":"f6a993e2-524b-4115-a00f-f2270ea15e6e","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":181,"box":{"x":68,"y":143,"width":823,"height":11}},{"id":"98439f24-80c7-4688-b9b8-b36cac242bc7","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":181,"box":{"x":68,"y":158,"width":807,"height":11}},{"id":"a7a26453-bdb3-4377-83f4-35328c3c980c","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":181,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"6548f237-7a40-4308-95e5-f6bdd532d99c","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":181,"box":{"x":68,"y":188,"width":838,"height":12}},{"id":"f28a776e-9129-4b1f-8a8e-c2cc6b6803ec","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":181,"box":{"x":69,"y":203,"width":695,"height":12}},{"id":"e7bde1d3-510e-43fb-924f-3f591ea00948","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":181,"box":{"x":102,"y":226,"width":768,"height":11}},{"id":"1bc7317c-063d-40d2-b2b0-bc38baa523aa","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":181,"box":{"x":69,"y":241,"width":769,"height":11}},{"id":"632e17db-0964-42de-9980-bfc5380f3841","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":181,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"029b6548-e16e-41dd-a3c5-69bc53aa65a9","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":181,"box":{"x":70,"y":271,"width":819,"height":12}},{"id":"e3761503-298e-489e-883d-e75e39ac8ff4","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":181,"box":{"x":68,"y":287,"width":818,"height":11}},{"id":"717d320e-0897-4bcd-a39c-99df43ae50f6","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":181,"box":{"x":70,"y":302,"width":830,"height":11}},{"id":"a7864d98-080d-4a34-b8f5-b48ee37fdb63","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":181,"box":{"x":70,"y":317,"width":792,"height":11}},{"id":"e34c01b8-b6ee-47e0-ad68-afa87cce9839","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":181,"box":{"x":69,"y":332,"width":808,"height":11}},{"id":"d7014736-13dd-480d-9075-035cd04e1df6","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":181,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"533cd07c-4a60-44d8-bdf3-6a3cd48d36ef","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":181,"box":{"x":69,"y":362,"width":789,"height":11}},{"id":"96a2b3ac-a822-4bf3-a25c-b419bf579531","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":181,"box":{"x":68,"y":377,"width":777,"height":12}},{"id":"ad8c2b08-c55d-411a-9981-9a55236585e2","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":181,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"082af1a9-198d-4fab-bf0b-85b1143d26a8","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":181,"box":{"x":70,"y":407,"width":801,"height":12}},{"id":"09a6718f-6c54-44c5-8cd4-0a4f8453cf19","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":181,"box":{"x":69,"y":423,"width":762,"height":11}},{"id":"ca3c4f2d-17b6-440c-a056-21cd5372f96d","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":181,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"5b050874-f0c5-469b-b1b4-9ca06457a814","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":181,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"6851f70b-0c6c-4a23-9b57-f321045a1ff2","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":181,"box":{"x":70,"y":468,"width":822,"height":11}},{"id":"551d1851-bedf-4c47-aba3-3fce0161fcd7","block_type":"box","text":"in subsequent taxable years.","page_number":181,"box":{"x":70,"y":483,"width":203,"height":11}},{"id":"9ae779f2-1264-499a-9116-bd50497b18a5","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":181,"box":{"x":102,"y":506,"width":795,"height":11}},{"id":"686e657a-15cb-47a0-8c59-f1a6a4ec7d8a","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":181,"box":{"x":68,"y":521,"width":816,"height":11}},{"id":"dbb06c0b-9bf4-4859-99b7-b832fe408435","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":181,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"09fa6d86-2b1b-4c03-ba70-e9582545b4dd","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":181,"box":{"x":68,"y":551,"width":815,"height":11}},{"id":"8b032419-1667-476d-874b-95e9df1a7ee5","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":181,"box":{"x":69,"y":566,"width":816,"height":11}},{"id":"f49f590a-aacf-438d-995f-ec66f366f7c1","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":181,"box":{"x":69,"y":581,"width":840,"height":12}},{"id":"860886a4-901f-4a88-ab27-88eef59b8052","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":181,"box":{"x":69,"y":596,"width":781,"height":12}},{"id":"289bbef7-255f-4f1c-8763-af3ea8849cba","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":181,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"2e5ed0bf-8b82-4d2b-915b-973f6caae615","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":181,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"640db091-f085-44d3-a627-98a4f53d2eba","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":181,"box":{"x":68,"y":642,"width":808,"height":11}},{"id":"c48cd037-11cb-4f0a-8a12-751dff067550","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":181,"box":{"x":69,"y":657,"width":826,"height":11}},{"id":"d5a80d03-8711-4fb1-9c82-b39d649f3c39","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":181,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"ee10f1a1-128d-47b7-8fa5-1210173bfe03","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":181,"box":{"x":69,"y":687,"width":811,"height":11}},{"id":"31f06cb3-6013-4cf1-9882-63f2227b4200","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":181,"box":{"x":68,"y":702,"width":784,"height":12}},{"id":"4e413271-8dcf-4d7f-a3d6-f5d8bdfb3fa7","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":181,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"2c9a5458-1f84-41ff-bf46-066b9fc78c39","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":181,"box":{"x":70,"y":732,"width":839,"height":12}},{"id":"b6d1e817-9a68-49d6-b196-91362193a172","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":181,"box":{"x":70,"y":748,"width":772,"height":11}},{"id":"5cc68586-c24c-4030-86d1-8a377f517bd4","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":181,"box":{"x":70,"y":763,"width":791,"height":11}},{"id":"f93bf246-54f7-477a-8bf2-80aaecc3229b","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":181,"box":{"x":70,"y":778,"width":787,"height":11}},{"id":"366d57ae-3b8d-483b-bb5f-2c5da8637de5","block_type":"box","text":"dividends under these rules.","page_number":181,"box":{"x":69,"y":793,"width":201,"height":9}},{"id":"f02eb529-c46c-4138-8fce-8e6480e5051c","block_type":"box","text":"Special rules may apply to a foreign shareholder receiving a Fund distribution if at least 50% of the Fund’s","page_number":181,"box":{"x":102,"y":816,"width":756,"height":11}},{"id":"e157a44d-a746-4cc3-8b02-b64f1a8c201b","block_type":"box","text":"assets consist of interests in U.S. real property interests, including certain REITs and U.S. real property holding","page_number":181,"box":{"x":69,"y":831,"width":798,"height":11}},{"id":"66405ee8-ae17-402c-a0e9-5472feaa7e73","block_type":"box","text":"corporations (as defined in the Internal Revenue Code and Treasury regulations). Fund distributions that are","page_number":181,"box":{"x":69,"y":846,"width":769,"height":11}},{"id":"898bc3f6-0113-41eb-81c6-0d4bdaec1507","block_type":"box","text":"attributable to gain from the disposition of a U.S. real property interest will be taxable as ordinary dividends and","page_number":181,"box":{"x":69,"y":861,"width":800,"height":11}},{"id":"d1ce9750-8989-4bf0-99da-cbb14d163800","block_type":"box","text":"subject to withholding at a 30% or lower treaty rate if the foreign shareholder held no more than 5% of the Fund’s","page_number":181,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"09b2bfa0-9430-49db-a56f-4cc78983ddbc","block_type":"box","text":"shares at any time during the one-year period ending on the date of the distribution. If the foreign shareholder held","page_number":181,"box":{"x":69,"y":891,"width":817,"height":12}},{"id":"2bf1f589-da20-4ca9-a371-ea58c4202c1c","block_type":"box","text":"more than 5% of the Fund’s shares, the distribution would be treated as income effectively connected with a trade or","page_number":181,"box":{"x":69,"y":906,"width":835,"height":12}},{"id":"a04064c4-204f-498d-a1ef-1873f3fe08f9","block_type":"box","text":"II-134","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"43ac24c0-5ed8-4076-b2ed-b315e1f97aea","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af3c43ce-6dd2-46e7-af72-3576bdcc73e2","block_type":"box","text":"business within the U.S. and the foreign shareholder would be subject to withholding tax at a rate of 21% and would","page_number":182,"box":{"x":69,"y":45,"width":826,"height":11}},{"id":"9463247c-8f13-48d7-a376-4da7ce563337","block_type":"box","text":"generally be required to file a U.S. federal income tax return. Similar consequences would generally apply to a foreign","page_number":182,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"f9fc11aa-65d4-40e4-a72f-c8b93b6b5884","block_type":"box","text":"shareholder’s gain on the sale of Fund shares unless the Fund is domestically controlled (meaning that more than","page_number":182,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"4faf7d72-4083-453a-a2cd-43f7b0ced96a","block_type":"box","text":"50% of the value of the Fund’s shares is held by U.S. shareholders) or the foreign shareholder owns no more than 5%","page_number":182,"box":{"x":69,"y":90,"width":840,"height":11}},{"id":"30c04c73-3590-4ba1-aa7e-43f3a2618138","block_type":"box","text":"of the Fund’s shares at any time during the five-year period ending on the date of sale. Finally, a domestically","page_number":182,"box":{"x":69,"y":105,"width":777,"height":11}},{"id":"a1bcacb3-0539-40e8-8ef1-4b52a67c98fb","block_type":"box","text":"controlled Fund may be required to recognize a portion of its gain on the in-kind distribution of certain U.S. real","page_number":182,"box":{"x":69,"y":120,"width":790,"height":12}},{"id":"4f9a1d1d-8800-462e-9310-f9cdbea36f6f","block_type":"box","text":"property interests. Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax","page_number":182,"box":{"x":70,"y":135,"width":804,"height":12}},{"id":"f1b38c42-8340-452f-be3a-bf28fa0ca87e","block_type":"box","text":"advisors concerning the particular tax consequences to them of an investment in the Fund.","page_number":182,"box":{"x":69,"y":150,"width":648,"height":12}},{"id":"af217003-749f-417e-8d5a-c810ed8a5953","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":182,"box":{"x":102,"y":173,"width":763,"height":11}},{"id":"14396aac-2f7f-4b41-8e8b-613332e37448","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":182,"box":{"x":70,"y":188,"width":820,"height":12}},{"id":"ab424569-ab42-4d81-8c96-c22ee04912a4","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":182,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"9dd21a83-acca-46dd-ab0f-056f08d88560","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":182,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"bce83d2b-53d3-48f1-8b54-69cfc0bbc54c","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":182,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"59068af7-fe7c-4824-a6fe-b5a0a15bfd30","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":182,"box":{"x":68,"y":249,"width":791,"height":11}},{"id":"59fdcef4-a7d6-4411-9942-cd5c885e0147","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":182,"box":{"x":70,"y":264,"width":822,"height":11}},{"id":"cfa03f31-c18a-4b75-8a08-edaff80e32ed","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":182,"box":{"x":70,"y":279,"width":739,"height":11}},{"id":"6b7dfbb7-5842-4217-ad9d-6176bfa7d5b2","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":182,"box":{"x":102,"y":302,"width":786,"height":11}},{"id":"1196206a-9823-49bd-93c6-7d810cd7381b","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":182,"box":{"x":70,"y":317,"width":820,"height":11}},{"id":"4a39de16-7ade-44ff-b26c-da0b05c0b266","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":182,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"61907318-c221-4934-8f3e-cd4e4e72c918","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":182,"box":{"x":70,"y":347,"width":821,"height":11}},{"id":"d743b92f-080b-4eaf-bf78-3efe81b3169d","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":182,"box":{"x":69,"y":362,"width":819,"height":11}},{"id":"45d45b8b-d171-4348-8a0d-c6f49d20c0f8","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":182,"box":{"x":69,"y":377,"width":826,"height":12}},{"id":"44fab787-68c4-4473-8d31-b26874608626","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":182,"box":{"x":69,"y":392,"width":802,"height":12}},{"id":"22550215-2eb6-4a95-9168-6d3550617744","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":182,"box":{"x":69,"y":407,"width":364,"height":12}},{"id":"ed136e5d-5204-4384-b996-8f9c1b7a6f53","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":182,"box":{"x":102,"y":429,"width":774,"height":12}},{"id":"6a0b5c67-8713-4525-a1e5-c36171fd56a5","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":182,"box":{"x":68,"y":445,"width":787,"height":12}},{"id":"17a24e4a-8bf9-4f69-81a7-fee6831b52d0","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":182,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"b7a2df47-88b5-46ba-be98-f3cc90189aa8","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":182,"box":{"x":68,"y":475,"width":809,"height":11}},{"id":"61d49e50-7724-430b-bf10-62270a86b395","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":182,"box":{"x":69,"y":491,"width":817,"height":11}},{"id":"bc06de4e-dea8-408d-8e09-d14948c9f122","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":182,"box":{"x":69,"y":506,"width":783,"height":11}},{"id":"2bebadbd-da9a-4016-b94a-f20324a60bdd","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":182,"box":{"x":69,"y":521,"width":710,"height":11}},{"id":"fa995058-9354-449e-abb3-b8906340f002","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":182,"box":{"x":102,"y":543,"width":758,"height":12}},{"id":"ac44ae1f-8041-49a4-95a9-a4f05259655b","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":182,"box":{"x":69,"y":559,"width":782,"height":11}},{"id":"99134fb9-03ba-443b-840e-a8a574da2b64","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":182,"box":{"x":70,"y":574,"width":783,"height":11}},{"id":"ea520d62-8e0a-45cd-bb9d-c5c085fdfb28","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":182,"box":{"x":69,"y":589,"width":797,"height":11}},{"id":"b29fb37b-9447-4c8b-85fa-81c6bd205be0","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":182,"box":{"x":70,"y":604,"width":822,"height":11}},{"id":"63aacd24-e894-42b0-808e-cc33bc76b479","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":182,"box":{"x":69,"y":619,"width":836,"height":11}},{"id":"531cf586-df6d-4883-bf7f-cfc4d26ec1c7","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":182,"box":{"x":70,"y":634,"width":826,"height":11}},{"id":"1f0f33ff-415b-424b-8e9d-1d3976d53c71","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":182,"box":{"x":69,"y":649,"width":808,"height":12}},{"id":"c4841fe5-29e8-4fb4-bdfb-24a0566a23f5","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":182,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"c6aa4f7e-24be-4efd-9401-0bb04c9475aa","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":182,"box":{"x":70,"y":680,"width":770,"height":11}},{"id":"13005699-038b-46b1-8156-f1c4d638560d","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":182,"box":{"x":70,"y":695,"width":816,"height":11}},{"id":"9e97e770-ce04-4eab-b038-b7213dbde39c","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":182,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"d446fc68-4432-4a7b-9c1f-68b700044d69","block_type":"box","text":"investment opportunities.","page_number":182,"box":{"x":70,"y":725,"width":180,"height":11}},{"id":"5e18d63d-390a-4e90-b022-b98d71527e72","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":182,"box":{"x":102,"y":748,"width":801,"height":11}},{"id":"1d9cf6a9-cc0f-4cbc-9442-35aad11fcc0f","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":182,"box":{"x":70,"y":763,"width":839,"height":11}},{"id":"804233d9-46a8-4da3-9f7d-6025772d4f7b","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":182,"box":{"x":69,"y":778,"width":840,"height":11}},{"id":"5d2533e2-440a-4f07-b15e-96a608b61869","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":182,"box":{"x":68,"y":793,"width":837,"height":11}},{"id":"4d09359a-7ddb-4d82-a5a7-cf063ed35490","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":182,"box":{"x":70,"y":808,"width":774,"height":11}},{"id":"2b73dadc-cce1-4bea-9f0d-7a4223839186","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":182,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"e9c1f938-4b18-4763-8617-a7bcc1e028a2","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":182,"box":{"x":69,"y":838,"width":795,"height":12}},{"id":"d7ed6c8a-c7f1-41cc-ae84-18e8078c24b7","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":182,"box":{"x":69,"y":853,"width":755,"height":12}},{"id":"79616b74-1353-436d-aeb7-5edc5e655520","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":182,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"48ee7c84-cbe9-4883-a89c-cf0514825e07","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":182,"box":{"x":69,"y":884,"width":839,"height":11}},{"id":"9c6da9ff-237a-4245-a870-88065f2fbb3f","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":182,"box":{"x":68,"y":899,"width":812,"height":11}},{"id":"a173f3a1-c370-4ed4-97ac-a4811d5c9df5","block_type":"box","text":"II-135","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0678fa46-d37f-46e0-8787-31d6219f9fee","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a218282-fe80-4afc-bc56-530cedbaff95","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":183,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"93783193-84eb-4b60-b1ec-b653cc5e5d81","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":183,"box":{"x":68,"y":60,"width":827,"height":11}},{"id":"6b3a4fd7-3ac3-493a-b732-1ff746e47a7b","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":183,"box":{"x":70,"y":75,"width":829,"height":11}},{"id":"4a186564-0f5e-47e2-b024-7f0e4bb30d85","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":183,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"33d15900-d3d1-4b1a-96f7-2886dc98ee19","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":183,"box":{"x":69,"y":105,"width":788,"height":11}},{"id":"039eb0b8-d875-44c7-9e8c-889fd1aa8be1","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":183,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"86ef79fb-d8d1-43f3-8368-6588430458e8","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":183,"box":{"x":69,"y":135,"width":773,"height":12}},{"id":"50913fe3-e39a-4e39-9900-159d67ca87d6","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":183,"box":{"x":69,"y":150,"width":817,"height":12}},{"id":"b97478d8-303f-4ad5-90b8-b2520c3eda1c","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":183,"box":{"x":70,"y":166,"width":814,"height":11}},{"id":"41dfa5b2-7b39-4a73-90bc-bfb8643a79a6","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":183,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"23890947-f952-4830-b9ad-753d2d8b1b41","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":183,"box":{"x":68,"y":196,"width":527,"height":11}},{"id":"15df5a67-d3a4-4804-9be8-859ad77c9d0e","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":183,"box":{"x":102,"y":218,"width":768,"height":12}},{"id":"867a188c-d7e2-4801-8f4b-2155c50945f7","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":183,"box":{"x":69,"y":234,"width":780,"height":11}},{"id":"ea2d2772-2afe-43fe-8885-6129ffd3a046","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":183,"box":{"x":69,"y":249,"width":797,"height":11}},{"id":"776c064a-4ec1-4026-8db5-b996f4c718ec","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":183,"box":{"x":69,"y":264,"width":802,"height":11}},{"id":"d9cc22fe-fbef-46f6-9459-4d6c2d58a960","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":183,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"68a45700-1e75-4c33-a883-f9e5c931226d","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":183,"box":{"x":69,"y":294,"width":776,"height":11}},{"id":"4b7a105f-31f5-46f7-80be-a2f79c2a5da3","block_type":"box","text":"positions in its portfolio (i.e., treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":183,"box":{"x":70,"y":309,"width":838,"height":11}},{"id":"73006563-53ea-4865-bf1c-5f9b94ed8233","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":183,"box":{"x":69,"y":324,"width":795,"height":12}},{"id":"b7f04c97-1044-4109-8caf-379666d671be","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":183,"box":{"x":70,"y":340,"width":830,"height":10}},{"id":"92498eab-d3e2-4950-9436-80c31653dabf","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":183,"box":{"x":69,"y":355,"width":804,"height":11}},{"id":"142964d3-9636-40ac-b026-dc7b056f8045","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":183,"box":{"x":69,"y":370,"width":415,"height":11}},{"id":"6f5bdc6d-8fe4-4fdf-bafd-4d0517ef0209","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":183,"box":{"x":102,"y":392,"width":781,"height":12}},{"id":"87560568-42ee-47de-993f-02877a0bf2af","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":183,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"966c91fc-4510-4fc8-9720-97713dec8d5e","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":183,"box":{"x":70,"y":423,"width":811,"height":11}},{"id":"271243bd-ec71-4ae1-b2da-fdf002066515","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":183,"box":{"x":69,"y":438,"width":818,"height":11}},{"id":"1cb594b5-80b4-4c97-965e-fba00e4815f8","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":183,"box":{"x":69,"y":453,"width":820,"height":11}},{"id":"44389d5e-615d-48cf-ba8d-8e200f020533","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":183,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"b22e9017-c4c4-4116-b00b-f918101ff3f6","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":183,"box":{"x":69,"y":483,"width":833,"height":11}},{"id":"a47c89cb-53d9-4780-869b-14b02c2026b1","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":183,"box":{"x":69,"y":498,"width":805,"height":11}},{"id":"96b7b878-b7f1-4f70-a723-1c7f7b2e4a51","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":183,"box":{"x":69,"y":513,"width":805,"height":12}},{"id":"307d2808-b34d-4509-b044-e528ecb38138","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":183,"box":{"x":69,"y":528,"width":822,"height":12}},{"id":"687ab956-8951-43a8-a1e1-bc0eee0807ce","block_type":"box","text":"capital asset.","page_number":183,"box":{"x":69,"y":544,"width":95,"height":10}},{"id":"439d5deb-4ec9-41d0-8ecf-433550143a09","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":183,"box":{"x":102,"y":566,"width":787,"height":11}},{"id":"fb6667b6-6f5f-4189-a88c-218ef487b283","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":183,"box":{"x":70,"y":581,"width":836,"height":12}},{"id":"ddefdebb-792f-4c2c-801a-fcc0a39cc13f","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":183,"box":{"x":69,"y":596,"width":812,"height":12}},{"id":"6b462105-5ac1-4434-b98f-2c9f0ea4dd30","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":183,"box":{"x":69,"y":612,"width":805,"height":11}},{"id":"b798f5c4-b8ee-46d7-8710-322efff16a96","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":183,"box":{"x":68,"y":627,"width":829,"height":11}},{"id":"7be04431-c11b-4fca-8104-0d509092a6ec","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":183,"box":{"x":70,"y":642,"width":803,"height":11}},{"id":"d3608e94-1cb1-4886-a05d-16aca9a5cc8b","block_type":"box","text":"Fund were to invest otherwise.","page_number":183,"box":{"x":70,"y":657,"width":216,"height":9}},{"id":"7446dd74-5f06-4cc6-b1a3-1c426abae8b6","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":183,"box":{"x":101,"y":680,"width":721,"height":11}},{"id":"73a5e906-e870-4e06-87db-62994073f4c1","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":183,"box":{"x":70,"y":695,"width":787,"height":11}},{"id":"ffcd3f15-a4ca-4203-8da1-5ef4d92caa1f","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":183,"box":{"x":70,"y":710,"width":831,"height":11}},{"id":"a0609bd6-9446-4269-a0d0-c71aac005f89","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":183,"box":{"x":68,"y":725,"width":823,"height":11}},{"id":"42bdb264-078d-4938-ac5a-01b9b8095b7b","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":183,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"5564b2de-2da8-4664-a7b0-3470c8d4b5aa","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":183,"box":{"x":68,"y":755,"width":838,"height":11}},{"id":"792d3f37-09e3-42f4-87f1-6b208bb1ce9a","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":183,"box":{"x":68,"y":770,"width":830,"height":12}},{"id":"098be193-a9b5-4c24-ba16-96ac4b78f35a","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":183,"box":{"x":69,"y":785,"width":515,"height":12}},{"id":"10583ded-5678-4b9e-ba97-c7aa86e55923","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":183,"box":{"x":102,"y":808,"width":798,"height":11}},{"id":"1a4e67c8-527a-4379-8096-3004190b24a6","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":183,"box":{"x":68,"y":823,"width":835,"height":12}},{"id":"a4dfbf14-0620-442e-910d-7be0241851f9","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":183,"box":{"x":70,"y":838,"width":827,"height":12}},{"id":"1ab9c680-28cf-4ee1-b0d4-6c0cb1c598aa","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":183,"box":{"x":68,"y":853,"width":830,"height":12}},{"id":"babe0ffa-966c-470a-84b9-55e26c08b79a","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":183,"box":{"x":69,"y":869,"width":802,"height":11}},{"id":"be34ca22-4828-4809-aa74-a1696631fb6b","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":183,"box":{"x":69,"y":884,"width":821,"height":11}},{"id":"7d86379b-453b-4274-82d0-75283ec42066","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":183,"box":{"x":70,"y":899,"width":797,"height":11}},{"id":"1b2effa7-d190-476d-9be4-f1544ced2205","block_type":"box","text":"II-136","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b79c19a0-dd5c-4108-83a4-ec7a6314c96e","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e47ce143-df21-4622-af14-29a1fe153dc4","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":184,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"a2760592-068e-4783-b318-295c083f6c74","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":184,"box":{"x":69,"y":60,"width":818,"height":11}},{"id":"232b5765-b7b9-462e-9a4e-c874057bc9bb","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":184,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"500ab61b-f14b-4db4-ae43-343c07f54c9d","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":184,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"e5e730d0-33b3-4dc3-8ede-ef8353d0f01d","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":184,"box":{"x":68,"y":105,"width":804,"height":11}},{"id":"affff774-0879-43ec-8c31-68eeef310831","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":184,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"b14438c8-d3c1-4fe8-bbde-d9ab36fc814a","block_type":"box","text":"PFICs.","page_number":184,"box":{"x":69,"y":135,"width":42,"height":9}},{"id":"32cdf282-afee-4266-90c7-8e867eb6d5c0","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":184,"box":{"x":102,"y":158,"width":804,"height":11}},{"id":"45c2981b-ad6c-444b-819c-fd6bfd7c24f0","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":184,"box":{"x":69,"y":173,"width":816,"height":11}},{"id":"c3d9de76-cfca-41c0-a32a-af9a4722ab94","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":184,"box":{"x":69,"y":188,"width":816,"height":12}},{"id":"ae7e92ee-a671-4e6c-b468-4baac0c9797e","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":184,"box":{"x":68,"y":203,"width":840,"height":12}},{"id":"883085f9-b738-4342-a354-3c86b4746290","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":184,"box":{"x":68,"y":218,"width":804,"height":12}},{"id":"99bb9705-2abf-483f-ab28-e2f3e4745e4e","block_type":"box","text":"difficult or impossible to obtain.","page_number":184,"box":{"x":69,"y":234,"width":225,"height":11}},{"id":"c67629a4-5fd5-4be7-84e9-fc0c7696172b","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":184,"box":{"x":102,"y":256,"width":796,"height":11}},{"id":"f0ef32a9-419a-47d6-8315-e9b9092a4acf","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":184,"box":{"x":69,"y":271,"width":806,"height":12}},{"id":"841535f4-7839-4a5d-8d27-af45ed5f3689","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":184,"box":{"x":69,"y":286,"width":778,"height":12}},{"id":"90730ade-bfc3-43eb-acfe-b5af46c8021e","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":184,"box":{"x":69,"y":302,"width":838,"height":11}},{"id":"8f700d71-43fc-41f4-ab7e-a49e71f2d737","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":184,"box":{"x":68,"y":317,"width":824,"height":11}},{"id":"4303e6e1-bdba-4805-84cb-1ce35e0959c4","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":184,"box":{"x":69,"y":332,"width":830,"height":11}},{"id":"8afeef0f-bbab-4a92-83e7-f9603536a7be","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":184,"box":{"x":69,"y":347,"width":511,"height":11}},{"id":"553eecb4-aae1-4ea1-a267-c8614ba90fc0","block_type":"box","text":"Municipal Funds","page_number":184,"box":{"x":102,"y":370,"width":115,"height":11}},{"id":"883e72fd-dc9c-4d40-b874-d47e39a05b63","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":184,"box":{"x":102,"y":392,"width":798,"height":12}},{"id":"2ea1537c-5683-4041-9ce6-e7d6ec492795","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":184,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"721bf81b-37ea-4bae-9e08-7f24c9396e2c","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":184,"box":{"x":70,"y":423,"width":803,"height":11}},{"id":"c73bff61-3d1f-46d8-a862-826f9cec9a61","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":184,"box":{"x":69,"y":438,"width":826,"height":11}},{"id":"9a3dd489-041e-43e2-a314-9275eef53c16","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":184,"box":{"x":69,"y":453,"width":752,"height":11}},{"id":"552cf143-323f-4d75-95b1-b836c1248fd4","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":184,"box":{"x":70,"y":468,"width":817,"height":11}},{"id":"90fe281a-076c-43bb-ab6b-87d762d5bdc4","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":184,"box":{"x":70,"y":483,"width":780,"height":11}},{"id":"9ec3ef22-5503-4453-bb8a-eb1766c2e93b","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":184,"box":{"x":70,"y":498,"width":815,"height":11}},{"id":"f719cd2c-cd4f-4e51-b895-7e8d84b99c59","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":184,"box":{"x":69,"y":513,"width":839,"height":12}},{"id":"c2ff0a19-68e2-4c08-8bf8-77076a8de58c","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":184,"box":{"x":70,"y":528,"width":835,"height":12}},{"id":"d9e344a5-05d4-49db-bdd7-8e6a82a61cb8","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":184,"box":{"x":68,"y":543,"width":730,"height":12}},{"id":"a47dbfc1-bbb6-4cc9-abed-56886a2fbaee","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":184,"box":{"x":102,"y":566,"width":763,"height":11}},{"id":"2fc62916-b665-477f-a5a5-5be39862c9cc","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":184,"box":{"x":70,"y":581,"width":809,"height":12}},{"id":"7c1b8e14-c0ec-4440-bc89-365ec6c2ee03","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":184,"box":{"x":69,"y":596,"width":821,"height":12}},{"id":"d3030aa1-1f7c-48e8-a556-bec7736dcf24","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":184,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"c0d85f61-2a32-4a82-8830-9565ac7b711a","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":184,"box":{"x":68,"y":627,"width":800,"height":11}},{"id":"ce3320ce-8dce-4197-b984-2af7e82bf1c8","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":184,"box":{"x":69,"y":642,"width":810,"height":11}},{"id":"28a95bd5-c61e-4a7f-9c68-6de0151021c7","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":184,"box":{"x":70,"y":657,"width":836,"height":11}},{"id":"36760fbd-b210-4b92-a1e9-83cd4e26d345","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":184,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"7f8a2298-9742-4543-9f8b-f853e4dc156c","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":184,"box":{"x":69,"y":687,"width":217,"height":11}},{"id":"8878861b-25b7-4222-89b2-f00067c97f5d","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":184,"box":{"x":102,"y":710,"width":788,"height":11}},{"id":"951c0614-4221-4b5b-b498-424f018bf02e","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":184,"box":{"x":70,"y":725,"width":790,"height":11}},{"id":"58223ea9-8dff-4921-b8e0-e4133d884cf7","block_type":"box","text":"constitute exempt-interest dividends.","page_number":184,"box":{"x":69,"y":740,"width":261,"height":11}},{"id":"f7c271bb-7870-4345-ae03-3735f2f1af9f","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":184,"box":{"x":102,"y":763,"width":765,"height":11}},{"id":"fb49d1cc-3054-4936-b991-c734f92fe90b","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":184,"box":{"x":69,"y":778,"width":819,"height":11}},{"id":"3b8c9755-5dd6-4405-bc55-27c116fe04c6","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":184,"box":{"x":68,"y":793,"width":813,"height":11}},{"id":"3374796b-07ef-4573-9b37-694685db6f30","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":184,"box":{"x":70,"y":808,"width":809,"height":11}},{"id":"7e3a4bac-53e2-4ba6-bc32-0926b03f0abb","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":184,"box":{"x":69,"y":823,"width":829,"height":12}},{"id":"32ab55f3-8fef-47d4-8be5-882772c12bc4","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":184,"box":{"x":69,"y":839,"width":388,"height":11}},{"id":"98f82f14-77f7-4860-8374-a871af4546cd","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":184,"box":{"x":101,"y":861,"width":787,"height":11}},{"id":"7cfbde5d-2707-43b2-ae52-60ec81c77653","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":184,"box":{"x":69,"y":876,"width":817,"height":11}},{"id":"88f4d985-5fd8-40c0-b712-0167fddfe264","block_type":"box","text":"income dividends received by shareholders.","page_number":184,"box":{"x":70,"y":891,"width":309,"height":11}},{"id":"efef7507-cf49-421b-a20e-669196273c7d","block_type":"box","text":"II-137","page_number":184,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4f44bb1c-f043-4ccb-970b-70d01e2ef004","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6cfc22a3-615d-47cf-8a8f-3dd7a67ec700","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":185,"box":{"x":101,"y":45,"width":766,"height":11}},{"id":"b4ccad44-21b4-4040-b560-0da06ef45a4d","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":185,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"376e565a-6f94-4abc-8039-dd6d7d8dd7a0","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":185,"box":{"x":70,"y":75,"width":815,"height":11}},{"id":"4de1d17b-304c-4890-8138-75cca53e7166","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":185,"box":{"x":70,"y":90,"width":815,"height":11}},{"id":"1c604660-4f05-4732-a844-95ce6f86ea91","block_type":"box","text":"the accrued market discount.","page_number":185,"box":{"x":68,"y":105,"width":208,"height":9}},{"id":"4eb718d5-8da3-453d-92f2-f3707a9dc2ab","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":185,"box":{"x":101,"y":128,"width":801,"height":11}},{"id":"60014b29-1715-456b-89d3-94dee5d25d63","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":185,"box":{"x":68,"y":143,"width":818,"height":11}},{"id":"79633d7b-6d79-4a3f-a13b-ac1b37b0cc29","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":185,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"5d0218c0-2a42-4309-a227-34ac44c14142","block_type":"box","text":"units and that benefit non-governmental entities (e.g., bonds used for industrial development or housing purposes).","page_number":185,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"ad1d9686-4c81-4ed0-bebb-66ed085385a4","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":185,"box":{"x":70,"y":188,"width":827,"height":11}},{"id":"780ba743-9826-462d-ac2b-89f8a4b7f4e5","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":185,"box":{"x":69,"y":203,"width":786,"height":12}},{"id":"9376e62a-0e40-4f90-b8a6-8c36b532cae0","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":185,"box":{"x":70,"y":218,"width":782,"height":12}},{"id":"36e5b78d-829e-4d38-b53b-9477867d6f99","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":185,"box":{"x":69,"y":234,"width":740,"height":11}},{"id":"dda2ca3f-2c28-463f-82cd-657b4de0b61b","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":185,"box":{"x":102,"y":256,"width":802,"height":12}},{"id":"0df107ee-b9b9-4c34-a81e-bbc20f96eb6b","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":185,"box":{"x":68,"y":271,"width":812,"height":12}},{"id":"62f29567-5e63-46dd-971b-fc9c1815d14a","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":185,"box":{"x":69,"y":287,"width":794,"height":11}},{"id":"aaff7afd-4750-499a-8802-b12cf8c0dae0","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":185,"box":{"x":70,"y":302,"width":776,"height":11}},{"id":"e27c429c-e8c1-4261-a713-d58e7861dacf","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":185,"box":{"x":69,"y":317,"width":826,"height":11}},{"id":"1e12facf-d368-4d2c-80aa-769aec02ea92","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":185,"box":{"x":69,"y":332,"width":436,"height":11}},{"id":"a89842ed-384c-4b39-bf79-e6582a1fe153","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":185,"box":{"x":102,"y":355,"width":771,"height":11}},{"id":"d27d9b86-6185-4852-8c16-a8356173c72f","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":185,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"5b984554-d4ee-4650-b6b8-ddf730df4cdc","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":185,"box":{"x":69,"y":385,"width":836,"height":11}},{"id":"a9268c62-a204-442c-8bb7-99390328c785","block_type":"box","text":"within each applicable state.","page_number":185,"box":{"x":68,"y":400,"width":203,"height":11}},{"id":"b9b9a634-8e22-4ac5-8ac4-c774ca6001d4","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":185,"box":{"x":102,"y":423,"width":774,"height":11}},{"id":"a44bccb8-c9dc-4b74-b8e1-de84cc35c4d0","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":185,"box":{"x":68,"y":438,"width":837,"height":11}},{"id":"8014e382-457e-48b2-8c40-9324bc46d669","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":185,"box":{"x":70,"y":453,"width":816,"height":11}},{"id":"8751b7e6-2e03-4ace-a2e1-1513c2ced79a","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":185,"box":{"x":69,"y":468,"width":830,"height":11}},{"id":"5be170ca-2d3b-461e-98a5-f9ee6debb5d8","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":185,"box":{"x":68,"y":483,"width":822,"height":11}},{"id":"2f7cdda7-ebae-46df-9e0e-e554e150f958","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":185,"box":{"x":70,"y":498,"width":783,"height":11}},{"id":"6e0596fa-ed83-4179-bb3c-252eb58955d8","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":185,"box":{"x":68,"y":513,"width":822,"height":12}},{"id":"92b68925-8e65-44bf-b642-ba764c9c8fad","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":185,"box":{"x":68,"y":529,"width":710,"height":10}},{"id":"77079758-48b3-4a0e-af13-f3e0fa75ac95","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":185,"box":{"x":102,"y":551,"width":796,"height":11}},{"id":"5413582c-36a1-4392-82e3-841946f3444d","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":185,"box":{"x":68,"y":566,"width":828,"height":11}},{"id":"26344c20-96fa-4cd9-918d-315646b04ffe","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":185,"box":{"x":68,"y":581,"width":841,"height":12}},{"id":"65836a86-1af7-4d61-8794-07fae97517a1","block_type":"box","text":"exempt from state income tax.","page_number":185,"box":{"x":69,"y":596,"width":216,"height":11}},{"id":"c03bc733-31f9-4cbb-b5cc-db8331de65c4","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":185,"box":{"x":102,"y":619,"width":771,"height":11}},{"id":"cd4c500c-b5f3-482f-b5d9-522f6a3e69b4","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":185,"box":{"x":68,"y":634,"width":823,"height":12}},{"id":"cd9af773-ea6c-46fa-b181-6f5feac59032","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":185,"box":{"x":68,"y":649,"width":309,"height":9}},{"id":"925bb0c4-11f0-423a-9bf0-10884f53ee43","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":185,"box":{"x":101,"y":672,"width":749,"height":11}},{"id":"6bd15be0-9e23-4fd2-b1f7-b31a8367b575","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":185,"box":{"x":69,"y":687,"width":803,"height":11}},{"id":"1153a82e-8fad-4698-841f-934e180dbde6","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":185,"box":{"x":69,"y":702,"width":801,"height":12}},{"id":"54a5009c-f5d2-4356-8b75-b630e93930a2","block_type":"box","text":"decisions may have a retroactive effect.","page_number":185,"box":{"x":69,"y":717,"width":283,"height":12}},{"id":"aba54b9b-f18e-49ea-a967-85af26af1ad3","block_type":"box","text":"PERFORMANCE DATA","page_number":185,"box":{"x":403,"y":747,"width":173,"height":10}},{"id":"f64d4bd7-9fdf-4da1-ab1b-dedb6c37cea8","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":185,"box":{"x":102,"y":770,"width":738,"height":11}},{"id":"753822d2-11fe-4dad-b9c2-2940846f82c8","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":185,"box":{"x":69,"y":785,"width":779,"height":11}},{"id":"b5e58e69-0050-4dd2-b3cc-3e66e4a014f7","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":185,"box":{"x":69,"y":800,"width":833,"height":11}},{"id":"4e31bbd7-96ca-43b6-b993-aa1d295763dc","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":185,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"3818c682-19e2-4057-8233-0801eac6d7fe","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":185,"box":{"x":69,"y":830,"width":473,"height":11}},{"id":"5c68b57c-91ab-4fea-8d0c-dc25c7fd4eb6","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":185,"box":{"x":102,"y":853,"width":761,"height":11}},{"id":"9d48175d-6a9a-46c6-8562-63abcb640c12","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":185,"box":{"x":69,"y":868,"width":836,"height":11}},{"id":"20a93d6e-9a94-4bbe-84c0-d47e0abd6818","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":185,"box":{"x":68,"y":883,"width":798,"height":11}},{"id":"f74091cf-966d-4ce8-bc62-dc07f4d891b5","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":185,"box":{"x":69,"y":898,"width":765,"height":11}},{"id":"51984f0c-421e-4c8f-85c9-22cdf34c2521","block_type":"box","text":"II-138","page_number":185,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"074c3c9a-34ed-4e59-b558-cd9f71c1297e","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f46a173-f77a-4bb7-904f-9c1554c72f05","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":186,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"68774456-8c70-4b4c-91bc-d66db077db1f","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":186,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"1b23b30e-2961-44f3-9a6b-abeebc57d9fe","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":186,"box":{"x":69,"y":75,"width":839,"height":11}},{"id":"e1f6f5dc-ae21-461c-9691-f3da9de66b37","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":186,"box":{"x":69,"y":90,"width":546,"height":11}},{"id":"99bed5d9-1592-4083-809b-6ae8d0174772","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":186,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"a5ba217c-dbdd-4cfb-9c8e-7dc9dca5d8ca","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":186,"box":{"x":68,"y":128,"width":819,"height":11}},{"id":"7c0ed442-e2be-47d8-8295-99dddf538a3e","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":186,"box":{"x":68,"y":143,"width":810,"height":11}},{"id":"128fb8a5-7c83-43fc-8afd-18e6598d2aac","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":186,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"0b9fbc4e-9bd3-404d-869a-e9a37af0e651","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":186,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"380924fa-564a-4f94-bc22-f9cb9807d063","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":186,"box":{"x":70,"y":188,"width":825,"height":12}},{"id":"44eff23d-0aed-498c-b0fa-32edea7fe853","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":186,"box":{"x":69,"y":203,"width":817,"height":11}},{"id":"ab032661-49d1-4bb7-b68d-2177b5dad72c","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":186,"box":{"x":69,"y":218,"width":820,"height":12}},{"id":"450e18d8-c960-4f58-b2e5-5be2a265dd41","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":186,"box":{"x":70,"y":234,"width":833,"height":11}},{"id":"97e2d429-29ae-4996-a11c-973e834b163c","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":186,"box":{"x":69,"y":249,"width":797,"height":11}},{"id":"6a1e105a-bee1-4ee2-8821-764e5c125f46","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":186,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"e14fbcfd-cb56-45f5-9b81-c8b7eb502579","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":186,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"2dac884e-ddc1-47f3-8f08-0336be1a7e8d","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":186,"box":{"x":69,"y":294,"width":814,"height":11}},{"id":"c344cdb8-492f-4914-be6a-b3913c0bef75","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":186,"box":{"x":69,"y":309,"width":830,"height":11}},{"id":"6b64bc1a-c944-447d-93b7-142d6a514d3a","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":186,"box":{"x":69,"y":324,"width":774,"height":11}},{"id":"1d7a877b-8dc5-4f49-a4dd-4a54e4038b1a","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":186,"box":{"x":102,"y":347,"width":752,"height":11}},{"id":"ea04f36b-7c70-45dd-bec3-04d438fbe418","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":186,"box":{"x":70,"y":362,"width":835,"height":11}},{"id":"7a9d9bde-102b-4229-a675-b46e5faab430","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":186,"box":{"x":70,"y":377,"width":820,"height":12}},{"id":"a0ad6ea5-6cde-4f01-8708-d13e6b35fb4c","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":186,"box":{"x":69,"y":392,"width":756,"height":12}},{"id":"cb27e325-7a16-47ef-a169-6847f398d4cb","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":186,"box":{"x":69,"y":408,"width":772,"height":11}},{"id":"97e85956-2cd6-40f3-a758-e74ac4fe8646","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":186,"box":{"x":69,"y":423,"width":827,"height":11}},{"id":"fa563d38-7299-4d1d-a977-5d64f48e1023","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":186,"box":{"x":69,"y":438,"width":825,"height":11}},{"id":"8878ba81-b116-4f3f-8743-571bbf1a9a3d","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":186,"box":{"x":70,"y":453,"width":812,"height":11}},{"id":"846549ea-e569-41da-98ac-bae7697eec75","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":186,"box":{"x":69,"y":468,"width":795,"height":11}},{"id":"46e88cd4-a107-43b9-bc75-86d086ee9f85","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":186,"box":{"x":69,"y":483,"width":768,"height":11}},{"id":"c6bef757-f9af-4225-9738-acdb49b9387a","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":186,"box":{"x":69,"y":498,"width":810,"height":11}},{"id":"b9da5bb3-8b46-42c5-88e1-4cc80f52bb1a","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":186,"box":{"x":69,"y":513,"width":802,"height":12}},{"id":"e1880fd6-6494-4fee-adcc-58d2ec430a1c","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":186,"box":{"x":70,"y":528,"width":825,"height":11}},{"id":"3818571a-6e4f-4a7a-b842-e902353a1d70","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":186,"box":{"x":68,"y":543,"width":823,"height":12}},{"id":"92586ae4-f107-4aca-8539-2d77fb94cb74","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":186,"box":{"x":69,"y":559,"width":743,"height":11}},{"id":"23e5fbe2-06d5-4adf-bcee-84ae05dadabf","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":186,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"c4f096d9-1d0b-4665-9188-f58d0ab79efe","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":186,"box":{"x":68,"y":589,"width":422,"height":11}},{"id":"1718dde1-a972-4ae3-8f78-745de816f565","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":186,"box":{"x":101,"y":612,"width":720,"height":11}},{"id":"c31846f5-5a55-4eb3-98e0-f3e8a177925c","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":186,"box":{"x":70,"y":626,"width":813,"height":12}},{"id":"fb20420f-fb4d-4c03-8785-3899a3730b08","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":186,"box":{"x":69,"y":642,"width":781,"height":11}},{"id":"a0e1f9fc-bbfc-4a2f-9de8-abdd1ca942dc","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":186,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"541fda45-557d-409f-a40e-9dc82cc8466a","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":186,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"ac6b48f8-6154-46b2-b312-89d46dd4ebbb","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":186,"box":{"x":68,"y":687,"width":815,"height":11}},{"id":"78ebf6f1-b4a2-46f7-a51d-5a9e63a2dc99","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":186,"box":{"x":70,"y":702,"width":801,"height":12}},{"id":"41330087-7d38-4070-b106-279c0ede8992","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":186,"box":{"x":69,"y":717,"width":819,"height":12}},{"id":"4afa8dd3-87c1-4e30-a9b5-d3356420904f","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":186,"box":{"x":69,"y":732,"width":811,"height":12}},{"id":"cddd68f0-6495-4866-bf27-d59c916a692c","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":186,"box":{"x":69,"y":748,"width":686,"height":11}},{"id":"2e953cc0-998f-477e-8549-62ab34f7bdc5","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":186,"box":{"x":101,"y":770,"width":796,"height":12}},{"id":"b2c0acf0-ca00-415f-85ac-97d0997723ea","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":186,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"8d6e6d87-da84-4b1c-ba45-f44213c3213d","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":186,"box":{"x":68,"y":801,"width":817,"height":11}},{"id":"7315c663-ba68-4613-9e60-8a6125ee6edb","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":186,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"723ca03e-7a61-4c7c-b77b-865bf224008e","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":186,"box":{"x":69,"y":831,"width":759,"height":11}},{"id":"47f6b5d6-d50a-4917-9771-b5c4c9becf4e","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":186,"box":{"x":101,"y":853,"width":779,"height":12}},{"id":"90e9c9a4-7600-423d-9dd7-9e71c5a4a5d2","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":186,"box":{"x":70,"y":869,"width":819,"height":11}},{"id":"927b6994-316a-43e8-8c44-4524c7de8ed2","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":186,"box":{"x":68,"y":884,"width":830,"height":11}},{"id":"eba80247-3dae-452f-b612-acc515463299","block_type":"box","text":"less than their original cost.","page_number":186,"box":{"x":70,"y":899,"width":196,"height":11}},{"id":"ad89b86d-d6b7-47dc-86bd-0c00b39ab0bd","block_type":"box","text":"II-139","page_number":186,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"87729afa-f2b4-4ad8-ba96-d62fa54bea82","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce4dfba1-40d0-41b2-ba0f-1a454c74235c","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":187,"box":{"x":102,"y":45,"width":782,"height":11}},{"id":"9ea8f42a-d1b0-4995-b3ff-b5dbefc57048","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":187,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"b24166ba-9743-4d11-8b81-e7ee2a46348e","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":187,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"d04aa0dc-23d3-4562-9ab5-c5790540a2fa","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":187,"box":{"x":68,"y":90,"width":820,"height":11}},{"id":"ec3f499d-b3bf-4bd6-8ac4-e75b8db3e8ec","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":187,"box":{"x":68,"y":105,"width":824,"height":11}},{"id":"e2161afb-8cc3-4de6-b7d3-102b71bbae8f","block_type":"box","text":"lower amount of expenses is deducted.","page_number":187,"box":{"x":70,"y":120,"width":278,"height":11}},{"id":"e6c23b06-ac70-473f-8cf2-5cd13ac015dd","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":187,"box":{"x":102,"y":143,"width":741,"height":11}},{"id":"36f037f3-44ef-4b52-a815-b68a98b6f23c","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":187,"box":{"x":70,"y":158,"width":830,"height":11}},{"id":"e06eca02-853f-4b47-925a-d38b129fdd59","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”), Money Magazine, U.S.","page_number":187,"box":{"x":70,"y":173,"width":810,"height":11}},{"id":"f30a36cd-beb9-483d-ab35-3142081a0ba3","block_type":"box","text":"News & World Report, BusinessWeek, Forbes Magazine, Fortune Magazine or other industry publications. When","page_number":187,"box":{"x":70,"y":188,"width":795,"height":12}},{"id":"592dd0f7-7ab3-48fa-b4a6-9af8b438d40d","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":187,"box":{"x":69,"y":203,"width":797,"height":12}},{"id":"13c0be4a-def4-4e5f-bf6d-715d973cbf86","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":187,"box":{"x":69,"y":218,"width":803,"height":11}},{"id":"5640f5cb-8a0f-45ae-a620-794b79cb1017","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":187,"box":{"x":69,"y":234,"width":824,"height":11}},{"id":"717fe6ce-4282-4203-bb41-6550ecfa3149","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":187,"box":{"x":70,"y":249,"width":818,"height":11}},{"id":"334f2543-d396-4c5b-be6b-414ed0266943","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":187,"box":{"x":69,"y":264,"width":793,"height":11}},{"id":"0c6c8531-4847-45e2-9248-b851eb1116be","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":187,"box":{"x":69,"y":279,"width":826,"height":11}},{"id":"6410c3d1-fb2e-4305-811c-ad945c2f7be8","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":187,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"0a281a69-ea62-4732-992b-6055e090028d","block_type":"box","text":"developed by Fund management.","page_number":187,"box":{"x":69,"y":309,"width":233,"height":11}},{"id":"c624d0e9-7fda-470d-8cc0-d53812cc0922","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":187,"box":{"x":101,"y":332,"width":780,"height":11}},{"id":"830fdfa9-579d-44be-9bbf-cb7f52fe6c52","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":187,"box":{"x":70,"y":347,"width":810,"height":11}},{"id":"b42a7736-5d12-4a13-9e58-23d5df65747a","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":187,"box":{"x":69,"y":362,"width":810,"height":11}},{"id":"2bfdaecc-b40a-4f21-b51d-0438e2628720","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":187,"box":{"x":69,"y":377,"width":792,"height":12}},{"id":"0783f885-92e4-4651-9ea3-95aaef5b3b97","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":187,"box":{"x":68,"y":392,"width":788,"height":12}},{"id":"2edeb469-b28e-4cf2-bf93-6acd4be548e4","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":187,"box":{"x":70,"y":407,"width":835,"height":12}},{"id":"9c2c2170-6937-4aa2-b48e-3960276a3216","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":187,"box":{"x":69,"y":423,"width":830,"height":11}},{"id":"c779a0f6-1f00-4647-9cb8-b57f264fed7a","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":187,"box":{"x":68,"y":438,"width":461,"height":11}},{"id":"25d5d9dc-36b3-44bf-8967-6db4b88b2a1e","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":187,"box":{"x":308,"y":467,"width":362,"height":10}},{"id":"820ebab1-e5f3-4a98-bcda-721ece2b6c8b","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":187,"box":{"x":101,"y":490,"width":802,"height":11}},{"id":"6cded210-39d3-4695-b1ef-32163f12c595","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":187,"box":{"x":70,"y":505,"width":809,"height":11}},{"id":"e98a247c-17dc-4d94-a0f1-cabcd238399c","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":187,"box":{"x":69,"y":520,"width":833,"height":12}},{"id":"46ad481a-c242-438b-97d6-e51643a506b8","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":187,"box":{"x":70,"y":535,"width":755,"height":11}},{"id":"1ff8a9ae-960d-496c-b657-c94b0344a422","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":187,"box":{"x":101,"y":558,"width":785,"height":11}},{"id":"4057aeb9-e7d8-4a11-b146-c6c6f2935e07","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":187,"box":{"x":68,"y":573,"width":822,"height":11}},{"id":"6b0fa796-7391-4dd1-b95a-29b527749d1f","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":187,"box":{"x":70,"y":588,"width":824,"height":12}},{"id":"c2d20b40-fce5-4936-9dd9-36276945b630","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":187,"box":{"x":68,"y":603,"width":812,"height":12}},{"id":"bcce2fa2-8efb-465b-9b04-d7f9f03ddcf5","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":187,"box":{"x":69,"y":619,"width":392,"height":11}},{"id":"aaca60e6-dfc5-49ad-9072-63a52a1a53d7","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":187,"box":{"x":101,"y":641,"width":749,"height":11}},{"id":"eca87016-39e2-48ad-9681-71f1116280db","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":187,"box":{"x":70,"y":656,"width":759,"height":11}},{"id":"6b42b173-127d-414c-9aa9-2c47330e14e2","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":187,"box":{"x":70,"y":672,"width":830,"height":11}},{"id":"d167b9c8-6f09-45cc-8649-b4b8b4aa4b4c","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":187,"box":{"x":69,"y":686,"width":838,"height":12}},{"id":"57a5f757-dbec-4cf9-a1db-366285bc77d1","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":187,"box":{"x":68,"y":702,"width":822,"height":11}},{"id":"d6934f69-fd5b-425b-9349-9083b94cec3e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":187,"box":{"x":69,"y":717,"width":392,"height":11}},{"id":"991b2cd5-c241-43ea-aa9d-5174fe294cac","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":187,"box":{"x":102,"y":739,"width":767,"height":12}},{"id":"e49a6e70-db7c-44ba-a8eb-58108683de5f","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":187,"box":{"x":68,"y":755,"width":827,"height":11}},{"id":"51bbc461-db01-4dab-bf2b-9dcc0726dcc6","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":187,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"9f5bdf98-1866-44c4-a2fd-7392addcfae1","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":187,"box":{"x":69,"y":785,"width":684,"height":11}},{"id":"37262b92-ddf9-4cf1-903e-7c39a873bc31","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":187,"box":{"x":102,"y":807,"width":766,"height":12}},{"id":"fef01070-4b9c-4753-9b0b-e8b66b3b175f","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":187,"box":{"x":69,"y":823,"width":784,"height":11}},{"id":"5b8a0c14-a41a-4ba5-9ed9-026e4dec46dd","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":187,"box":{"x":69,"y":838,"width":805,"height":11}},{"id":"794a96ea-1d19-4771-99f0-05ba2e197626","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":187,"box":{"x":68,"y":853,"width":790,"height":11}},{"id":"355150c9-2ea3-4301-8769-38931a29a185","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":187,"box":{"x":70,"y":868,"width":810,"height":11}},{"id":"d6e824fb-315f-4179-845b-791de58eb8f3","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":187,"box":{"x":69,"y":883,"width":788,"height":11}},{"id":"ba3c9165-07ff-4112-99fc-5b70551d7c43","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":187,"box":{"x":69,"y":898,"width":327,"height":11}},{"id":"7738ed02-658c-47d9-aee2-a10430af93b0","block_type":"box","text":"II-140","page_number":187,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c8565fb4-0a9b-4ec6-b439-7ad08fc3b0f1","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6da2d804-c1ff-46b0-b032-26c43bfba048","block_type":"box","text":"GENERAL INFORMATION","page_number":188,"box":{"x":391,"y":45,"width":195,"height":10}},{"id":"e9ee8017-f2a5-4ad9-8d14-9693f026956f","block_type":"box","text":"Description of Shares","page_number":188,"box":{"x":69,"y":76,"width":156,"height":11}},{"id":"7b3d3965-181f-4e78-ae55-2ee3310d69d1","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":188,"box":{"x":102,"y":98,"width":800,"height":9}},{"id":"ecb15790-40fc-4996-8b8d-e388a2f13fe6","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":188,"box":{"x":69,"y":113,"width":811,"height":12}},{"id":"c2aff43a-50c2-478b-bed0-2db3c9976c48","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":188,"box":{"x":69,"y":128,"width":825,"height":12}},{"id":"acfb9a47-b574-4570-90d8-d4fb94164e1f","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":188,"box":{"x":69,"y":143,"width":838,"height":12}},{"id":"840e7500-9213-46d4-bf72-c51dd5029602","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":188,"box":{"x":69,"y":159,"width":835,"height":11}},{"id":"a21f7b3b-be96-4cf5-a9c7-f95d2f7ced91","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":188,"box":{"x":69,"y":174,"width":781,"height":11}},{"id":"82c7a019-0960-4e87-9aa1-96ce207c9806","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":188,"box":{"x":102,"y":196,"width":801,"height":12}},{"id":"0f3e0467-6081-4876-8e31-813a36be7c5f","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":188,"box":{"x":69,"y":212,"width":760,"height":11}},{"id":"374c66a5-4124-4191-993b-eba74a171b4c","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":188,"box":{"x":69,"y":227,"width":810,"height":11}},{"id":"fa89cfb9-7ac3-4a6d-8342-260ba24d3bf9","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":188,"box":{"x":69,"y":242,"width":790,"height":11}},{"id":"2ae7e803-4bb2-4a3f-ae97-5fff95b5e48d","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":188,"box":{"x":69,"y":257,"width":787,"height":11}},{"id":"acf83737-fb0f-4849-a7b0-15df11bf5bd9","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":188,"box":{"x":69,"y":272,"width":797,"height":11}},{"id":"959e4445-3f3a-4b9f-a310-feb2506b4fa4","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":188,"box":{"x":69,"y":287,"width":658,"height":11}},{"id":"b3d19de9-da85-4789-a254-1df2a7929f3c","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":188,"box":{"x":102,"y":310,"width":741,"height":11}},{"id":"061f6c3e-2127-4058-8cfb-65f495d24821","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":188,"box":{"x":69,"y":325,"width":790,"height":11}},{"id":"105e16dc-724a-46b1-a731-7907fc88901b","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":188,"box":{"x":69,"y":340,"width":546,"height":11}},{"id":"dddaccf5-0f18-4c73-a8e8-794de0d35273","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":188,"box":{"x":102,"y":363,"width":712,"height":11}},{"id":"a4e9f042-3480-4b2c-871b-955de83ab927","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":188,"box":{"x":69,"y":378,"width":765,"height":11}},{"id":"32ab1e47-97c5-46bc-abbb-a519639512ae","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":188,"box":{"x":69,"y":393,"width":834,"height":11}},{"id":"1e307a94-57b7-419d-bec8-be4ed026ea72","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":188,"box":{"x":68,"y":408,"width":729,"height":11}},{"id":"7f68a01d-b3d0-4a11-908a-4f391fb131d4","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":188,"box":{"x":69,"y":423,"width":815,"height":12}},{"id":"50cc3aed-e036-4c04-ab54-9ed76f5c7915","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":188,"box":{"x":68,"y":438,"width":761,"height":11}},{"id":"831a3084-4af9-49ac-bb50-032f4719e4a6","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":188,"box":{"x":69,"y":453,"width":824,"height":12}},{"id":"0810355b-80cc-4d19-9868-56e5eaf93b77","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":188,"box":{"x":69,"y":469,"width":839,"height":11}},{"id":"545921ea-0f9d-4508-bd36-042dc4f329f6","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":188,"box":{"x":69,"y":484,"width":813,"height":11}},{"id":"b481d2e9-aa3d-46e3-bdcb-40fa281af4c2","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":188,"box":{"x":68,"y":499,"width":827,"height":11}},{"id":"044225ed-3782-403a-869f-3189b03897aa","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":188,"box":{"x":70,"y":514,"width":699,"height":11}},{"id":"dadafa05-ca2e-4ac7-92a7-488faad68633","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":188,"box":{"x":102,"y":537,"width":413,"height":11}},{"id":"6654eb09-39d7-44ab-850c-5f987c112245","block_type":"box","text":"Additional Information","page_number":188,"box":{"x":68,"y":567,"width":161,"height":9}},{"id":"f7554400-45bd-496b-86f8-4d5bcffb0188","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":188,"box":{"x":102,"y":590,"width":789,"height":11}},{"id":"441de7d7-a59d-42a0-a932-bca6d278246e","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":188,"box":{"x":69,"y":605,"width":799,"height":11}},{"id":"6e2e81b2-d480-4b94-823e-9b64359b3148","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":188,"box":{"x":70,"y":620,"width":837,"height":11}},{"id":"29743a37-34ea-46ee-b683-66666375b871","block_type":"box","text":"such name to any other company.","page_number":188,"box":{"x":69,"y":635,"width":238,"height":11}},{"id":"220d452d-98ff-4cea-a75e-6a642b523af6","block_type":"box","text":"II-141","page_number":188,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7b53da0a-73dc-4c16-a42b-01b4ac7dd9af","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20b89627-8e02-4e27-9694-d3cc0ce1463d","block_type":"box","text":"APPENDIX A","page_number":189,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"a700436f-0199-47f7-b8d0-0a673ee903bf","block_type":"box","text":"Description of Bond Ratings","page_number":189,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"49ea180a-818c-4a16-85bc-421bff325dd7","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":189,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"dddb0bb8-df9e-4c9a-ae6e-51b6ac76c394","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":189,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"b83e06c3-4e15-440f-b3da-c2c0d9353cae","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":189,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"a79e1eea-9a9b-4d2f-9e9a-1f8039f2fef8","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":189,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"5a26f36b-0f1a-427e-9c6d-9e761e407b69","block_type":"box","text":"securities on a particular subsequent date.","page_number":189,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"10e6c739-6b78-4709-96e5-fb59fa5ea814","block_type":"box","text":"NRSROs may rate specific investments (","page_number":189,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"e5cde977-bc28-4c2d-9450-8ffd9c3761bc","block_type":"box","text":"e.g.","page_number":189,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"68e702f5-0940-4f98-8704-8f20e89d23a6","block_type":"box","text":", bonds), issuers (","page_number":189,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"d6da5970-7304-4d94-a0f4-701381ffa807","block_type":"box","text":"e.g.","page_number":189,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"309d6365-3207-4d28-ba7a-e4e63320e859","block_type":"box","text":", corporations, governments and financial","page_number":189,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"98a0f06a-630f-4ae6-825a-49fd75640ab2","block_type":"box","text":"institutions) and/or programs (","page_number":189,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"6eeadda6-d9b7-4cc3-b340-32a02000be62","block_type":"box","text":"e.g.","page_number":189,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"7c4b58c6-bfcf-4192-b729-40519a98c565","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":189,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"c34f0826-e18d-4eed-a05c-8e6cb8c09e0d","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":189,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"6a7cf114-e4ce-4477-bcd5-7b9f8da9c37a","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":189,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"fc85e708-e8eb-40da-8b89-f236a0c5dae1","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":189,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"631486fd-6092-4f17-a817-8425f9cec18d","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":189,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"b5b6c1b5-ade1-424b-a25c-0591a22f1b44","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":189,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"b02762ce-921c-4f2c-9c04-2c19610930a2","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":189,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"0c38ad73-463e-4792-b08d-f71acae6c908","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":189,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"d1617878-6299-44a6-b120-72e662ec42e2","block_type":"box","text":"security (","page_number":189,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"4d56c044-8e60-499d-863d-7e426589eadd","block_type":"box","text":"e.g.","page_number":189,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"5fdadb3c-32d2-4be5-b0d2-8e9a7d83ff5a","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":189,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"c6e51d53-698e-438d-bd3a-61bb66c19b93","block_type":"box","text":"highest of the multiple ratings.","page_number":189,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"280a6d90-63e9-49fa-a524-59df50e663e6","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":189,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"b23a5f4c-e2db-4e4d-aa24-74f3b2a5c853","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":189,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"9f8fde75-98a6-41c0-abf4-b9b416becff2","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":189,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"2cf736b3-471d-46a6-ba12-344033a44ffb","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":189,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"0ffa05fa-f83a-4f3d-8992-a0d98463e26c","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":189,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"d3368c9f-0a41-4815-b2e9-4d2e4ac01b2c","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":189,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"4426b0ff-8032-4ebe-9be5-23b4c6ce552b","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":189,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"4adf7650-b5c6-4dff-acd9-ec1639609806","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":189,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"5946e000-aa51-4975-b0d0-8faf16e28acc","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":189,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"93ea5fe2-9694-4d90-a528-ad250fa5cb68","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":189,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"9ec6da0c-0603-4681-9712-0c853bd3405a","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":189,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"a063ae35-d542-43e2-ad0f-31e3456142c1","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":189,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"43e8b954-2547-4011-9c5a-0d8b8aeed8f1","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":189,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"b137f2bd-2c61-4ebd-a691-13bfa526a4f1","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":189,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"3547c170-e75a-4ed7-a8bd-ef3003b2d115","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":189,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"d405522c-f9d6-4f79-b8bc-52ae8747eded","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":189,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"10c331eb-4b7d-429d-98ff-63c5898d97ea","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":189,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"78e5413c-db34-49ee-925c-b58d7eca07fb","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":189,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"23fea4fe-8345-4184-a2a8-c1d5fd57a589","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":189,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"2798b506-b6e9-471c-bfb9-64438348a622","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":189,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"462d7e1d-a112-46b1-9980-a1d5e66d84f7","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":189,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"74833c59-9721-41b1-b141-969105f2518a","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":189,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"2d041548-b69a-423a-877b-96c630e87004","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":189,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"0e6ca830-56fd-4ab8-9b9b-7b7ff7af377b","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":189,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"b0d02481-da28-4470-8ce9-8f3ff4a1df2c","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":189,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"849fe6cf-a556-4742-b249-1d6d8a13c406","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":189,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"aa6c7826-6db9-4fc7-95be-4dbf7d017125","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":189,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"9fce21ec-1344-4a20-a66a-149839dedb93","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":189,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"75ab5619-81b8-4d98-bbcc-4c2faf1ae5da","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":189,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"f4954d4e-9c94-4cd2-8165-a9aa09875b3f","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":189,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"aa13cf2e-e8d8-443c-81ed-67025a933229","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":189,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"0d65a7e4-087d-4c3f-a261-b66432f4a99d","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":189,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"7faa13f8-906f-4ce9-b271-0f5c0b8167a7","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":189,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"41169cd9-7bc4-422a-aebf-168a715f4dbf","block_type":"box","text":"upon standard sources of variation (","page_number":189,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"a45ecdab-9383-4a41-8698-25e8e6919bef","block_type":"box","text":"e.g.","page_number":189,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"09229262-7b61-44a7-aa8b-bbbfbaa1228b","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":189,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"0e4c4d24-bbaf-4d3d-a913-8f927868b197","block_type":"box","text":"A-1","page_number":189,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"07f890e6-2c8c-4a46-bbce-a1541cc6bd9c","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df754cf0-21e0-4034-882f-99672dd42f31","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":190,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"79c0f6ee-6a27-4128-81fa-80cdff8c4914","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":190,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"0615192a-9a6d-4166-b1b2-dc200041ac82","block_type":"box","text":"e.g.","page_number":190,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"924534fc-a5a6-449f-b609-1f1988ca7091","block_type":"box","text":", equity indexed), absent","page_number":190,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"1f7640a2-8eac-4131-bf4f-eef4d8e5abcc","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":190,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"09ca44bc-3336-47a7-981f-1d10d715fe58","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":190,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"b5fda9f7-1e7a-4f45-810e-6f9dab2b5a92","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":190,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"35e34bd3-d923-4670-8481-f55ac0d260d5","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":190,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"b20c3751-0993-49bb-918c-399faf257975","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":190,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"2d7dae1b-8b01-44bd-a25a-f9b81f472eba","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":190,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"d79d5e06-7070-4284-879e-830702ab020f","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":190,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"96462af6-a64d-4e91-b46f-e40f645e95cf","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":190,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"074eebe0-0e76-4f69-b149-4b42331c9379","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":190,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"fd8fdcd8-2a79-4689-94fa-fca0e7be4a2b","block_type":"box","text":"i.e.","page_number":190,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"1ab57057-5374-4bec-bce2-6f0d6db9cc54","block_type":"box","text":", ratings on nonfinancial","page_number":190,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"dacbe93e-4495-4baa-a98b-eb904e6776ad","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":190,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"ca7d36c5-3818-47c4-92ce-eb6533e2b57e","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":190,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"fb54d0d5-cbe5-4156-b9fb-8ff02d4133b0","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":190,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"4fcf7728-15f9-4239-9347-567f45f2ed5a","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":190,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"0b697fab-d349-4277-b8e7-2a857d5af74c","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":190,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"b8a493cb-3422-4def-8765-3e4c529fa232","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":190,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"c1693ec9-b758-41ab-841c-1b397a515fbb","block_type":"box","text":"of time.","page_number":190,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"f7d3efcc-4ef5-44da-93e6-048cf6fe17fb","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":190,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"28a9c125-aede-4e9e-8221-36833196f040","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":190,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"81fb28f4-76a8-45f5-b110-84f5633d5353","block_type":"box","text":"risk.","page_number":190,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"8bf7e87e-fbc6-4835-bf30-ad86e6d3cb3b","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":190,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"08e09690-783a-46b5-9932-f76fa5253ecc","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":190,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"04f41d55-d8f1-4076-a28c-275144dafe62","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":190,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"591c0377-e9b8-47d1-9193-983adf32f1ef","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":190,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"0bf5d157-1c24-445b-a300-aa8cfb1d37e0","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":190,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"144402a7-313d-4684-beb3-584d405a7621","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":190,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"c2e5d816-27c3-4c82-821c-568d41279117","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":190,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"5df6edcc-eede-4a93-a997-bd20c436360d","block_type":"box","text":"credit risk.","page_number":190,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"afa3b4c6-ed42-42e3-a87d-4b5430fa6b03","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":190,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"68d815ab-da68-453d-8c33-a05be74a3e03","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":190,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"0176fca8-c736-4b22-9e2a-1b935c1600a9","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":190,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"3d7c4b81-84b5-444a-8a92-7ea8380a55fd","block_type":"box","text":"of principal or interest.","page_number":190,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"b1419ad6-77e1-46ec-b230-698989679aca","block_type":"box","text":"Note:","page_number":190,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"161f6de5-43ba-491d-a9dc-2a291eacf171","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":190,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"569b3a03-f35d-48d7-bc98-c72f7a5f7de4","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":190,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"740ffe9c-f977-4bd9-8694-9d4d2cf3b3f8","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":190,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"85cbe6d0-329d-46a5-96a4-0224af2664be","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":190,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"22c4433a-134c-4720-877b-80ca0488adc0","block_type":"box","text":"companies, and securities firms.","page_number":190,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"c1d80b8a-f1a4-4693-95c5-6e77615028e4","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":190,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"58ac6ea0-5e5b-41b7-bf58-337b4bed9ec4","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":190,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"c3b88206-0c74-4411-8a64-09afc78a2d29","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":190,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"28efb3d5-7095-47a2-a0e6-f1115f2c8e8b","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":190,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"26c9b117-43b2-4270-ba73-15d93e8410bc","block_type":"box","text":"that security.","page_number":190,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"a360a20b-205e-40c5-a567-2463818ad5c6","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":190,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"3b2a054f-e47b-445f-8ee7-f7bd784cf34b","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":190,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"48ded604-6e40-4d6c-afa3-229395ac4728","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":190,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"3ddbe32f-4eac-4d43-9ee4-9b60e47028a6","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":190,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"08e365cf-57c6-440d-ad93-99abbf4e48a2","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":190,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"64891da5-51a3-4122-bff2-08e56fc58049","block_type":"box","text":"categories.","page_number":190,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"12261edf-94ca-4507-9e8a-4ec34e97cfd0","block_type":"box","text":"A-2","page_number":190,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"7df9f823-e586-4774-9e56-a863aecd6e14","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"918acff5-4dc1-41c7-9814-ad8403957256","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":191,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"812c8aad-72e3-4c84-9b16-454f7d57cdc5","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":191,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"b758e336-29f0-4cf9-a4da-f439fbaa198a","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":191,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"c2c269d7-7a3f-4e7a-898e-aafac880023f","block_type":"box","text":"an issuer’s self-liquidity.","page_number":191,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"7108e05f-4674-4cbe-a75e-04f9152be7aa","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":191,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"2be05920-468b-4a2c-9630-6f523cafe484","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":191,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"7d8ef9f7-fb98-45b4-8695-75a56769e4ad","block_type":"box","text":"MIG Ratings","page_number":191,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"f5fcb06e-26c5-4df4-9381-ef98a5c491ea","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":191,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"7e537735-8d81-4e88-815d-87c6d78a718d","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":191,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"2f694e5f-05bd-403f-b11d-178e998b6d20","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":191,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"d1968052-df0e-4a9e-8ce9-eab9e2efbc12","block_type":"box","text":"MIG Scale","page_number":191,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"0af0cba2-5e65-4430-b92c-8921b48e1490","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":191,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"55432a13-ebd2-4dc7-bc81-dfd020691de1","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":191,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"ccce9db2-f715-48a7-9c24-9e898db62f58","block_type":"box","text":"refinancing.","page_number":191,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"bd43f4f1-4e67-41ea-8ff4-fd72502b5b58","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":191,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"29fce72e-12e3-4a3c-a880-4c83e99e3f37","block_type":"box","text":"large as in the preceding group.","page_number":191,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"b67876d7-3b06-4e78-86cb-d5b776490dc9","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":191,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"602e5d13-9f45-47b0-bee5-da600b5a9d57","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":191,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"d928fc85-29d5-46c4-b810-c17c5a1cbbc9","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":191,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"4da70fe0-05d8-4f88-b1f2-a729b51189e8","block_type":"box","text":"lack sufficient margins of protection.","page_number":191,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"3443e028-7469-415c-b9b0-4440cbba433e","block_type":"box","text":"VMIG Ratings","page_number":191,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"b1458fcc-b494-4829-9aff-c903274bb7cb","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":191,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"ae0b1b10-c997-4b85-8b88-a9b581add5a7","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":191,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"7ee71d1a-fd1e-42a7-a4fa-ce69c043e7bc","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":191,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"2e255d7c-9252-40fb-bf13-505519fd261f","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":191,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"febcdb17-30e3-4389-8c46-2732223339c3","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":191,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"447aae95-3d0e-491d-a05b-c62b8650ae42","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":191,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"664f388a-9562-4b34-a968-8efe849e0a8b","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":191,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"9fcef3dd-8313-438b-a4de-2910c15d3803","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":191,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"c27384c8-3f93-461a-b181-adbe71148e89","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":191,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"090834fc-2a94-428b-9dc2-273e1f81316d","block_type":"box","text":"grade.","page_number":191,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"18a3daab-4c0e-4e93-bd1b-307ac1f57436","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":191,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"0fceaf10-a11c-4c5f-9574-1b58aacc62cb","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":191,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"2b8cbce9-a872-47e7-a127-906be0d4f750","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":191,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"f51b9925-350b-4d6c-9667-198bc41fc74b","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":191,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"6e5b6f91-52ae-486a-92b3-59ccf0e527a3","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":191,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"701719e0-3b4c-4821-b56f-8fa3c4808518","block_type":"box","text":"liquidity of the corporate obligor.","page_number":191,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"019c339f-9c6c-41e9-b0f5-1fe6b5c17015","block_type":"box","text":"VMIG Scale","page_number":191,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"797c5ecd-8732-4839-aab9-5e51b3b84fed","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":191,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"13722b4b-5db1-413e-8377-9385285471ed","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":191,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"edc2ff2e-6fdc-4bb3-b7f0-c6036c28a36f","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":191,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"99df94ba-dc26-4071-9306-3d2cd40bdd85","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":191,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"b3164ca5-be90-4bae-8f76-12a941be53a5","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":191,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"12434866-b31a-430f-a605-0a55296154e6","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":191,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"b9ebcf1c-78ed-44f2-9829-271b7fcf3283","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":191,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"d3d2bf5e-6ae6-4448-964b-171c38ec895e","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":191,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"c75736a4-d90c-40cb-890d-c2e0d2dcebd8","block_type":"box","text":"may lack the structural or legal protections.","page_number":191,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"ce86b735-d0c5-4bd7-a8e9-953217a2e4ad","block_type":"box","text":"A-3","page_number":191,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c4b75cc1-3795-4060-aea0-0769eed8b10e","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a7ca6dcf-ff23-4951-866d-a573d505bd06","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":192,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"efef0dd0-b9d3-4741-b2a2-1409c10f5482","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":192,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"fb572c54-9bf2-42a5-b4fa-68ec3ba73aa4","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":192,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"1d39ff29-9c31-4b40-865a-490300f7cc30","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":192,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"054b5c17-303e-4b1f-9918-45e2b9274077","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":192,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"f9b8b6a7-d733-42ed-bb14-2398c3f2a89e","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":192,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"3412d462-f8c7-409c-b3d4-53358728a04d","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":192,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"acb4c3b4-fc3d-4449-8030-55c26f35985e","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":192,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"804eec28-ba11-4200-9da5-aecc462d50e0","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":192,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"eb25b985-5950-4a2f-8e69-7d29ab70248c","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":192,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"6f89cb8d-5174-4ee5-927f-cb7fe773c4dd","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":192,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"674a44b9-394b-4ef9-b8b9-5bcfcfa999f0","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":192,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"542f1156-69af-47ea-8ae5-f2131c0c6218","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":192,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"5e8e8d09-655e-4b49-bff9-04e74ef9565b","block_type":"box","text":"from these guidelines based on market practices.","page_number":192,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"bc721c87-f596-422e-80c6-bac8f5d193b9","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":192,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"a0fb23fc-3835-4a85-a475-ccc0fe75e6aa","block_type":"box","text":"•","page_number":192,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"06240ebe-5024-4ae4-9978-d8fa39318be2","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":192,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"a84c60ef-2952-4736-9c24-8c0643a79ad5","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":192,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"3c22cc1e-ab87-467b-9b66-15ffa8284a22","block_type":"box","text":"•","page_number":192,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"f71ea6d6-06f5-4e5d-ac8b-149ee94bf923","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":192,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"aa47cba0-2602-4612-a66b-57e1a8e78c5b","block_type":"box","text":"•","page_number":192,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"58026d5b-f397-4617-b401-40da8004449e","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":192,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"0b865354-b038-4559-99c2-631413a0c1e5","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":192,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"a50b941d-f16c-42e2-a736-3d4f30aec334","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":192,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"493a032e-b8a8-4e42-bfc9-f7af76857fa1","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":192,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"bf73bd8d-d4a5-4478-8752-b5f158761e80","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":192,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"40bc96b4-6d5a-4390-b220-aa7a2b3f4035","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":192,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"c711501a-cef6-4a2b-94f2-cdb0f3cb3231","block_type":"box","text":"obligations.)","page_number":192,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"5198b303-a07f-4017-84e8-33be17ef5a42","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":192,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"7c493314-1d40-4ebe-9afb-b3fe33ec0d9d","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":192,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"33677802-8c32-45b0-816c-412ec429101b","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":192,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"e6e98ce1-7791-416e-acf6-3907e41995c9","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":192,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"56959eb6-be72-433f-9098-5257bdffec70","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":192,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"93e7764b-f67d-4efc-a17c-a219ed4dc37f","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":192,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"6d1941f7-9e3a-4b79-802f-e07f95003cda","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":192,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"137d7655-450b-4ac9-a9f2-0c3566e16b90","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":192,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"159422b8-8feb-4810-a716-9cb933591813","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":192,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"c107fa9b-467b-4787-93d8-0d9d629c9f23","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":192,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"1216b14e-c584-4af1-828a-cfcfdad2a92a","block_type":"box","text":"financial commitments on the obligation.","page_number":192,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"cd2f4308-d8c6-442e-9990-8ef58cd5beb1","block_type":"box","text":"BB,","page_number":192,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"679a6a1e-ba01-4bc7-aba6-5381f7075b5c","block_type":"box","text":"B,","page_number":192,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"ff88aec7-4428-4359-85d0-7e1dc6023db4","block_type":"box","text":"CCC,","page_number":192,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"05a35e04-353a-4640-b5df-a4943a8104d7","block_type":"box","text":"CC,","page_number":192,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"6a528e7f-37d7-45c4-a46f-cb1d0c1040cb","block_type":"box","text":"and C","page_number":192,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"48733056-166f-4045-a443-7a1d8df4df22","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":192,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"3b1b8446-135d-4cd5-abad-50a3b26bce1b","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":192,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"88df9434-b4fb-4a08-b072-048df430f356","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":192,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"60972067-9e1b-4b51-8371-9af48a821eb6","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":192,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"cf1304cd-d312-4152-b97f-049e06606e18","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":192,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"a62da79f-b130-4d1b-abfb-0961bdeb8425","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":192,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"184df44e-4bfb-46aa-80fe-1fa70e6980db","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":192,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"dd73fd3c-ba25-4f57-9ba6-66718db2c245","block_type":"box","text":"on the obligation.","page_number":192,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"719d6307-5b25-401c-a3fa-9e8b22daf5f2","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":192,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"2d59ad06-8076-4425-b779-091d93977cef","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":192,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"b9c79897-1b4b-48ea-8e60-0028f0673376","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":192,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"946826c5-89ab-4416-a188-7d88de1815d4","block_type":"box","text":"financial commitments on the obligation.","page_number":192,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"32521c60-9709-46ce-8f9b-5eb808fbf4c2","block_type":"box","text":"A-4","page_number":192,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"76ade78a-4751-48b2-bb03-2c450248c4e1","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e277dafa-e79c-40ab-8a8f-2ebc67c878ef","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":193,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"96284d3c-0a32-4960-92b8-0d88432ce317","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":193,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"30a0c842-3cf8-4dd9-a9ea-50edd6347e31","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":193,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"182154e9-59d5-46f5-bfec-86b3d31fd4d3","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":193,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"ecb45bda-842e-472c-ad26-210b1f6f5b70","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":193,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"df217e12-edb5-44af-a13a-5f4104bcc85e","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":193,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"7b0fb70c-73bc-4742-beb5-338d53e7cda9","block_type":"box","text":"anticipated time to default.","page_number":193,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"f5af586f-ea3d-41a2-9a97-5027e94bcdce","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":193,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"40e9a27e-7b29-4e44-9af7-a1e151ff93fa","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":193,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"7612adfc-6d10-46fd-add9-7523e40c8ce6","block_type":"box","text":"higher.","page_number":193,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"a77e1619-6145-4e8d-a924-d951e8b17bac","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":193,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"79fd1d46-2be0-4a84-8b62-b1e9c6b8f88b","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":193,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"052c8025-fdda-4516-937d-4ff7293e495f","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":193,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"e6f16ece-fea9-4d74-8a16-5d5fd4e39589","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":193,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"8d7d1b3b-7505-4472-bc6c-7b21789a6574","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":193,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"c83aae2d-bccc-454a-875a-137110e9a327","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":193,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"1aa36117-aeb3-48a4-a63d-353da8821fa1","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":193,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"e2081f3d-d692-4923-81b7-5633c4ee0d73","block_type":"box","text":"restructuring.","page_number":193,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"eac63a8e-61dc-4390-a6d9-f064304d01ee","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":193,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"8de35fc6-8e24-431c-815b-7f28ce01ca30","block_type":"box","text":"standing within the rating categories.","page_number":193,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"a590184b-6e69-47e2-a76d-a879afdc32ba","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":193,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"54240791-63a4-4505-8421-190274d29c80","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":193,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"422e9140-1f37-4b52-a951-dd387105af66","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":193,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"b1fedd87-d5e8-4bee-9726-3191688a5408","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":193,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"15a5b23a-4a5c-489a-b8e0-08c10b5cedea","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":193,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"3743e2fb-d13c-4626-ad3b-71858d66b0de","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":193,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"c8a530db-30ac-458f-98dc-f90e5319eba4","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":193,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"6357d298-c6ae-4da3-869d-898d54a9898c","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":193,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"c88e7923-3ca1-41a7-afb4-103dde438450","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":193,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"5a64ef75-b6d8-44d4-afff-9feb7b1ceba3","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":193,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"b7f38144-b1a4-42aa-925e-dff71035903c","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":193,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"dfb0ed33-fb7b-44e2-9674-4c7a761a853f","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":193,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"13f8ab9a-7768-4170-9d8c-dfca158fcb95","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":193,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"b8d94965-c639-4826-975c-c39b14328715","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":193,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"c3b84406-077d-4486-90ed-b69dc0391dd2","block_type":"box","text":"financial commitments.","page_number":193,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"dc3d772b-38c3-4836-8a01-7993e819cc96","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":193,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"b6e9a592-7ea2-40ac-9458-76e1581141c5","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":193,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"06ed0b3f-4014-426e-a3c7-f50f79291f5a","block_type":"box","text":"commitments on the obligation.","page_number":193,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"f8fe1601-ba9e-43c1-b38e-76ea25d0213e","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":193,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"b71f887a-a315-4b55-afca-7c503159734d","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":193,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"8397329c-7825-4809-900e-fea7d48baa37","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":193,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"877b9e79-516b-4896-847e-683f2d52f4d5","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":193,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"b3343cbf-65e6-4004-8765-d871cc1b0a91","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":193,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"fe359131-7192-4ee0-ad23-5f139e49063f","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":193,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"66386e13-c679-4f8c-9156-86851a363470","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":193,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"7e6d6303-306f-4236-938a-9b06538f3f97","block_type":"box","text":"debt restructuring.","page_number":193,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"32fd1da3-2f78-4d94-a33e-200cc6e022db","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":193,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"3b514f21-e4c9-47c3-81f6-84e115f5f11f","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":193,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"373f7e67-bc2f-49e3-86e3-f47a2837d38a","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":193,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"2c70353c-ba50-4dc2-86d1-558e9d44f218","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":193,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"caaf258b-ce2e-4441-aed0-b8c87a45b5b6","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":193,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"e9da2b29-fc8e-47f5-8819-5a02b89fe296","block_type":"box","text":"A-5","page_number":193,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"2b8d9133-1e62-4caa-a633-8bc935adb5d8","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"128ceda5-a0a0-4924-b8ac-c207b2945898","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"d2adf7f7-9de0-43fa-a53a-6c6fa4673754","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":194,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"916f9c32-a7b0-4fbe-9e2c-a3090675d758","block_type":"box","text":"as a note; and","page_number":194,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"02e0fdcd-ddef-4a03-bf10-c922c1939f27","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"559a3aaa-a9d3-4261-8784-3d6677df7a96","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":194,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"95bd3ade-3940-4930-8b38-12f53637c112","block_type":"box","text":"treated as a note.","page_number":194,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"2425ce85-75a0-4557-92a1-7628795990d1","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":194,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"a5bf20d1-9815-48c5-b8b6-2c1727461660","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":194,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"f265c35a-a847-45c2-bebd-a5ae040f869d","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":194,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"18647eea-b170-444a-8282-45324565deaf","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":194,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"dfb873f9-2381-430f-a1af-5c23d6d46c2f","block_type":"box","text":"economic changes over the term of the notes.","page_number":194,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"1fff22b8-9cc6-432c-b6ef-2cf32fd148fe","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":194,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"0757dc56-ec87-426e-a22b-f3395ee9e269","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":194,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"6186a6a9-7178-48c6-890c-96393d1c0305","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":194,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"bcc372c8-9710-4362-af0c-9ed7d5e44b92","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":194,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"3fd21438-4952-4339-b8f2-bf51a8f13ac7","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":194,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"f7c7cd23-65ca-4f21-9460-9d83711f69c6","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":194,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"69e18cc2-8bcc-4a81-983f-3e446b97c3ce","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":194,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"52aafc78-0422-438e-b84d-5952009e8b66","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":194,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"8091d011-f056-4baf-b053-ddfe7561d377","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":194,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"5372528a-4a12-4015-9b98-fc6a77948ac3","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":194,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"29c1be73-23da-4efe-af2b-3875f05e2c1e","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":194,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"27986c38-e14d-49cc-96a3-e343066b8716","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":194,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"b728e7cd-61eb-4c8a-85de-d1fcdf39a947","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":194,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"52613197-7a70-4120-96a6-ff463a538799","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":194,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"16de129d-a57a-4eab-8341-cd564701e65b","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":194,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"c0ba75c8-2402-48f7-85b7-b7c147b0f6f3","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":194,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"84f39c39-f10a-45da-baf1-fa54309cef43","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":194,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"0f44caaf-4e99-4e1f-ac86-1476b24133f7","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":194,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"fa6861d5-2ed0-48ef-b37f-d105ff0bf48b","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":194,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"5d2c6600-a184-4711-9056-75c6d3ac2cff","block_type":"box","text":"receivables or other financial assets.","page_number":194,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"1cdb4ab6-635e-46c6-bea1-9074cdf0a45f","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":194,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"8cf56942-5e55-4369-97c6-2cf23774da3f","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":194,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"2fdc4b47-c72a-4529-8eb1-e793f8ee61be","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":194,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"0f0b3d2b-f32a-45e9-a69e-e91b1bc8414a","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":194,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"f191a0d0-e758-4c86-b00f-1444eb0006ab","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":194,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"7f8b5d40-0fbf-42a1-b930-7068023636eb","block_type":"box","text":"occurred.","page_number":194,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"f0867397-0a4f-442c-801d-8ff32088f21f","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":194,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"3e58b121-abaa-4c83-a139-64261eb0b940","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":194,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"66f6e5d4-0b4f-4d13-9e6c-283b48c83eda","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":194,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"688244cf-9a84-4d9f-8977-8d0a814e3528","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":194,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"caed076f-f202-42fa-825c-f65d8d9fe622","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":194,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"ff6aa6a2-4da9-4ec5-a9d2-d0ac6c22132f","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":194,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"72d1f6c1-6a8c-40cd-8b9e-1c726e79b378","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":194,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"028dc05a-8b05-44e8-ada3-e834797fbcef","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":194,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"3afddde3-2356-4370-89af-6abb4c0d660e","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":194,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"793bd690-23f9-4199-9a00-5abaea5c0aeb","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":194,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"fe90a604-446f-4231-891a-148e8b32d702","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":194,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"f6627503-ffab-4d8d-8361-2d7086970b52","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":194,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"e176b954-2dbf-4a4c-9eaa-7049eb8d0391","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":194,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"70c0f174-9ce7-4f5c-a7e9-c13ff34bd36e","block_type":"box","text":"i.e.","page_number":194,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"0dd9169f-aaac-4410-b9e7-f9c7d7b9854f","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":194,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"ca509342-6780-488f-bb5e-f9ae8a531b77","block_type":"box","text":"the obligation’s documentation).","page_number":194,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"0828d8c3-6e77-4b14-a8e6-d8fc186345c5","block_type":"box","text":"A-6","page_number":194,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"439b06bd-8691-4630-858e-6889d5c06f1f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"98f30cf4-048a-47e0-b640-0c2781900495","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":195,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"df58c31c-7d15-4078-a6a0-6f475f015487","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":195,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"cbeaed5d-9694-4857-adb7-f8bebb4f6334","block_type":"box","text":"agents in the form of a rating letter.","page_number":195,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"9720f2e8-c97e-4320-8d5f-9c5d600ddef5","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":195,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"9852b3d1-4e41-4cb5-aa45-af44143de832","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":195,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"9255b779-b309-4a07-bb60-a3199b9eab5a","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":195,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"d86293f7-fdbe-4761-bd68-732ca18a70b0","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":195,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"79787b1f-9a78-4d69-a496-622a874aa5f0","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":195,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"b8cf9bfb-f8b3-4251-8222-def418924f24","block_type":"box","text":"e.g.","page_number":195,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"6649554a-2eea-4780-8a8b-823e8f1e6f39","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":195,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"cd0322e0-77f8-412c-8972-8930d6cddb89","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":195,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"c3fc2baf-5d2f-4816-ae47-fc5af75004a9","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":195,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"6f5726d0-e1fc-4c35-9ea6-faab77a1f031","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":195,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"f86e83c6-56d2-4692-afed-32b2e1fa8b8e","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":195,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"308d7c9e-59dd-47fd-a08e-aea68d80fd20","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":195,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"07612bcb-3232-47aa-996c-1d33988cba3b","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":195,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"09c22770-1190-44b6-b39e-bac0aa2e7ee3","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":195,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"812a71fb-477c-46a4-a1b9-23d6468f9b08","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":195,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"ed3aea9e-aa7a-4361-9684-3981ac5a2101","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":195,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"c1f87259-3632-4786-9b77-90610a1235e3","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":195,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"ff1b7a87-3f74-4d69-921d-30b49210d717","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":195,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"a9b4a8fa-509a-4142-bb68-ed8456329b0f","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":195,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"fc035597-3323-47ba-bdb0-18d32ff0ab01","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":195,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"f7eb93dc-70e8-4fc7-882e-cf6d58e1b3e4","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":195,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"11138da3-179f-47d8-8e18-027b039af186","block_type":"box","text":"Ratings.","page_number":195,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"dca55032-2e6c-414a-9111-1bcf12cbb93e","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":195,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"414873d9-9e16-40f8-ba99-7d7b17cc1e93","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":195,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"d3fa17a4-8af2-426c-b990-4f9ac1cb6b7b","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":195,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"27ae137b-729a-46a5-9250-8a9f7e4111bc","block_type":"box","text":"obligation ratings.","page_number":195,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"c0220801-2e4b-48bf-aab1-bc9e87482adf","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":195,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"baa43558-2712-4a22-b896-5b0311194c3a","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":195,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"c1244b29-c8fe-430c-af0e-0c64fe3779f4","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":195,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"9abfd463-8b60-4d22-848f-2a9fbb20e9d2","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":195,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"2bbb059c-cde7-4565-9d2b-e08e185ae2d9","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":195,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"30f39d0d-d24d-4112-98f4-8389cbba0122","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":195,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"322acb13-b6e4-4713-bff5-87f47b3617a1","block_type":"box","text":"to foreseeable events.","page_number":195,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"5a57ef5b-b156-4b6e-bba8-f762706b199a","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":195,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"04f37cae-117e-4f39-9643-1e6cfc08a642","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":195,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"4e12ad5a-c457-4abb-b9b7-19da1f0c0aef","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":195,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"6f1b28f8-d776-424e-aa58-0c0cb4c0bdf6","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":195,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"47cfd69b-bfdd-488c-baed-11b91f38d3b4","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":195,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"c9afa7a5-c4e3-4f01-9864-2f890e6e4425","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":195,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"9d90c9d5-f283-4d20-bd53-f42e6e197a0a","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":195,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"d49af721-dbf5-49e7-a81b-64ca7f8b9d2f","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":195,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"eb81d028-7dff-4808-adad-cd728f5d5948","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":195,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"1fee2d36-16c7-4981-8452-3ac5e0dd86ff","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":195,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"3aa28293-afd3-4403-9456-ee928b9e8bc5","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":195,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"3cf6ac18-1bce-42b7-ba2b-3c4077035ab1","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":195,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"96f39fde-e7e3-4714-85e2-9da7ad091261","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":195,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"641ceb49-c518-4679-a95d-3927ff25d373","block_type":"box","text":"possibility.","page_number":195,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"c5985d0a-dae9-40fb-9cf8-3e0b9acbc236","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":195,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"6ad32f7c-47b1-43ec-8e1f-6ad132614957","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":195,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"5aba4534-1909-4cd3-98e8-e4a5eb736fec","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":195,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"646b1d7c-6c2d-41fb-b284-df7e77710542","block_type":"box","text":"A-7","page_number":195,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"576925ea-357c-4e4a-a238-b94b49bae354","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2698a2f0-9b70-445d-a4ee-12c66e6afe02","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":196,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"a6cef2dc-5347-45f3-b3a1-4b0efb3f2473","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":196,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"4cae6bc2-43b4-4ee3-95b3-bce18fa0227c","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":196,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"e57f51bb-31e6-4b61-b21a-661e91137c80","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":196,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"ba8e63a8-2db0-4142-9471-6dde7c1b617b","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":196,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"f1010702-ffd9-4175-ba5c-5fd5d846e9a4","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":196,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"af47f354-18dc-424d-a30a-cbbbbff793b6","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":196,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"e2769d54-0c91-42a5-8367-e3226f6f7897","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":196,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"00f6a336-d8ea-46ce-9128-a19ff7474f29","block_type":"box","text":"relative status within major rating categories.","page_number":196,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"521a9c93-ca5b-4d7f-b0ab-71b8f7ef7e69","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":196,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"ea3e228e-9b0b-4743-91e2-323a5ec55ed2","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":196,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"a900ab51-8f4a-4879-a05b-28e4e6f98094","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":196,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"359458d5-59b1-4a76-880c-8b740333a735","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":196,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"676054a5-8413-4ef0-8452-c2fe727fbe21","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":196,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"4d447f35-48de-49d6-8108-17168a0f2574","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":196,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"84edef48-02c4-44fc-bd9b-89bb99aea60a","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":196,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"e2b6107c-b744-4776-8c7f-e0d250a5aad1","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":196,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"15b1b6d8-ce90-4a2d-a4f9-b3758e9fdbd7","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":196,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"8fef0ac1-6404-4b8f-a73a-e95beda5bee9","block_type":"box","text":"finance markets.","page_number":196,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"571ec509-dce5-4e90-87e6-fcc19e3e8dda","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":196,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"741f642a-2a98-49d9-b560-9489ce98bd2e","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":196,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"6996a7a9-1276-4d07-af15-2aa2d9f9b39b","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":196,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"00cc984a-c4dd-4814-974b-51da65602da0","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":196,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"f1ebc569-74c0-4682-beb3-8a85fa834963","block_type":"box","text":"commitments.","page_number":196,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"973c1184-bbe9-45df-805d-e07c99970081","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":196,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"9ba7a885-721a-4e6f-ada1-7a8daae2fad8","block_type":"box","text":"adequate.","page_number":196,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"44ed983d-6a17-4a40-ba51-1cbbc40fdda6","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":196,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"b1cbd094-76d7-4d9d-afa8-34d3a7145441","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":196,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"cf9d177b-ea83-448d-bc02-81c56400bc90","block_type":"box","text":"economic conditions.","page_number":196,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"84423037-efc9-4bd5-9c1c-ac43a613aece","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":196,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"ff2c3c58-e695-4bb8-9a17-49c46f8aa4f3","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":196,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"7c6be3f3-6651-4050-b199-c666bebf6a77","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":196,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"caae4a3d-5cc0-4c12-b8bf-0be268a20205","block_type":"box","text":"ratings only.","page_number":196,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"bed834bc-d9a9-48a9-8b93-4f52dd6642fc","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":196,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"de1fbec7-b4d1-4420-b073-07ee2564a4d3","block_type":"box","text":"obligation.","page_number":196,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"e2163956-c6b5-4caf-843a-c1afd43621cc","block_type":"box","text":"A-8","page_number":196,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"64307ddd-5184-4773-b0eb-6bf19bc9f30b","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9fc06e98-ad13-46d4-bfcc-0b63b908990c","block_type":"box","text":"APPENDIX B","page_number":197,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"ed881cd1-fa83-40f3-88a1-e0fb939dade2","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":197,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"abdcee4f-4e4f-4474-8203-b785c375e720","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":197,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"8fe1e334-27f0-4048-9a26-ebd4e6201485","block_type":"box","text":"Effective Date: January 1, 2025","page_number":197,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"9c97ddd6-eac6-421b-9a61-14bf243d56ae","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":197,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"845137ca-dd73-42fc-8f5b-69b1cb5e843f","block_type":"box","text":"□","page_number":197,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"8deb4a21-9c3f-4aee-be42-dca39a8bdbaa","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":197,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"0464f89e-d7a2-40b6-a8d7-ca7c348c595e","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":197,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"53f3a194-750f-4ac4-b33d-40d46912efa2","block_type":"box","text":"□","page_number":197,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"a06d8d92-f1a9-4ac4-ae3a-b483250221dc","block_type":"box","text":"Money Market Funds","page_number":197,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"73c96ef1-3188-42d6-9db3-18b8f73d16cf","block_type":"box","text":"□","page_number":197,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"97706206-7896-4b03-aae4-4eb6e29087ed","block_type":"box","text":"Closed-End Funds","page_number":197,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"3f8b8c01-a6a4-4bc7-b8d4-6e1eb6064145","block_type":"box","text":"□","page_number":197,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"622e774f-ef39-4de5-9c49-a2fb6b3306fe","block_type":"box","text":"Other","page_number":197,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"310c5b01-cc92-4ba8-b97b-69eb1eb3e20f","block_type":"box","text":"Objective and Scope","page_number":197,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"b31e58e0-3045-435b-9d55-0dceeb3a70d4","block_type":"box","text":"Set forth below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":197,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"78462564-064c-46a1-80e3-f8189b294b38","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":197,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"7396fc91-f584-4ad6-b07d-62707e770ac3","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":197,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"a6ae4c4b-706e-47eb-b874-4c2fc831658b","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":197,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"a8e8b8e2-2a77-4d97-ace6-892752af123a","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":197,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"e426caaf-d9f6-47d1-b944-72f344f666c5","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":197,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"5ac32676-4d75-421b-9467-e0d0158ebc71","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":197,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"a1ea0ccd-02a5-4200-86a5-a3bfae42e23d","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":197,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"b250dc91-9ce1-4ef5-8e0c-53697884c39a","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":197,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"2f5a8dc2-1bc6-4edb-bf91-86a5bfd46aba","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":197,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"2d8bc968-246c-40d6-aa42-9c8a19f48399","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":197,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"e45c0ca1-82d0-4952-927e-ace0ced7011b","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":197,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"23c12c39-61f5-405d-8f9d-4086b0ecb300","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":197,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"95e26d0f-60d1-4f8f-b29d-af2b70b826d6","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":197,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"eb2e8a5a-1611-4d17-bd03-17d148360523","block_type":"box","text":"Conflicts Management","page_number":197,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"1eedf5cf-4e05-4600-bf2c-f981d7a53c7f","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":197,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"b4ac141f-f135-4e60-82b1-bb0f6d198338","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":197,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"0d0533eb-aa02-48c4-a59b-a7f75dcc5a8a","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":197,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"afb779a0-09ef-483c-9bf9-c84305db6c1b","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":197,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"4bf7f089-4e19-4b9b-9c4d-8393c6915da8","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":197,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"4d6b9bae-0c43-4d10-a298-dbf044ee57e6","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":197,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"5ebd5faf-eb04-49a6-99e0-b85b21ff1c8f","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":197,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"e0626975-0490-4eda-bf30-b4a8b93c0bb2","block_type":"box","text":"In certain instances, BAIS will engage an independent third-party voting service provider to make proxy","page_number":197,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"d3e91174-a19e-4e00-a642-f2b47b8aa4fa","block_type":"box","text":"voting recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":197,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"112f1f75-20d3-4656-a4b0-9856002ce45c","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":197,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"f1e80fca-9d12-47ab-8569-3514b804a33c","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":197,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"b7092072-e147-41d0-85ab-903c8074f45a","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":197,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"a7365493-5c04-46eb-8807-0fa9b3b8477a","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":197,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"0598c725-f600-4b04-839d-54ddb89c5b18","block_type":"box","text":"connection with proxy voting.","page_number":197,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"d2f47205-c8d0-4bee-aa3d-59c018c30fd3","block_type":"box","text":"Reports to the Board","page_number":197,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"c1f9a6eb-3b40-426f-a23b-e4df258842a4","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":197,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"07e383ec-c15b-4dae-8d05-7c0d8a2d26d3","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":202,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"db113335-0676-42b1-8349-0c0bf25c9777","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":202,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"16be9c53-5764-45c0-9079-454b70c23534","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":202,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"ebcb25d2-bcea-41e5-8956-d923a694b9ca","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":202,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"d4aa4443-bdc8-45ce-900d-ccabd2abcca7","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":202,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"095dd2da-a89a-4ba2-8dde-04c6823ffc52","block_type":"box","text":"this work with research, data and analytics.","page_number":202,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"eec0cc8e-1ec2-4da7-bd74-4759322a37fb","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":202,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"bfcf8a18-7491-40e7-926b-f85657c3cf97","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":202,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"51bde6c8-ba6c-4ab7-bb18-edd2f7e46006","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":202,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"cfc03ef9-794d-4553-84f6-6c7309445ee5","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":202,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"2ee3e67a-4dfe-4063-8213-70ca94ba83ee","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":202,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"d695ee48-f3a5-4101-952c-6fd1388761d6","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":202,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"07764a78-798a-4c9e-b0c7-abd299d958dd","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":202,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"a96f6e36-838a-4993-8c04-f7e84a103958","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":202,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"db24e0a2-14d7-4e8b-acc9-6904a02af627","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":202,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"2533b9fe-e22a-41b7-9dc9-7431b8a37f5e","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":202,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"332de689-a35f-4688-9c02-1aaec496c884","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":202,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"0956f4af-9da5-4a05-9d1b-b10f7365c96a","block_type":"box","text":"shareholder meetings.","page_number":202,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"1ae14e92-a87d-4c6c-b433-367ccd52b7a9","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":202,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"38fe1454-086d-4aaa-a9ba-57436145f3d8","block_type":"box","text":"investing.","page_number":202,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"ecc5b59d-e59b-4b5d-a51d-489a3a13e944","block_type":"box","text":"3","page_number":202,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"7539ad3f-68e2-4848-86f3-6df4c50bac6d","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":202,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"6fae7c2f-c5cf-43c0-ac0b-d47076265b26","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":202,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"72d35798-9878-4dd6-914c-60cbdf475c67","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":202,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"5ffcf8b8-cbe4-49cf-a401-8a361efd892d","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":202,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"5a78830a-51d2-40da-8681-e6e0574bf726","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":202,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"e88402cf-bfa1-4bff-aaea-70612b16eee9","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":202,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"7281c2f4-b75d-4d4e-b429-8cdb2409bd02","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":202,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"55e981e9-c76d-4a37-88d1-fc2dc21e319f","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":202,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"d183035f-cc8a-4075-bae7-08a4aaf8384e","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":202,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"b9acf2a4-a108-4198-9700-b640d18e1790","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":202,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"2352892f-2c1e-494a-b84a-d014c52fdeba","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":202,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"86962083-71e8-44e6-a7c0-c42133fd4d12","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":202,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"8f191715-9fde-469c-843e-75148713f99e","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":202,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"8671abd6-ba4f-4ef1-84fb-006793044cae","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":202,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"449d8653-aeac-4766-876f-c7e0648f8486","block_type":"box","text":"management teams and board directors","page_number":202,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"3f8cc097-91a7-49f6-9de8-f7a734b21108","block_type":"box","text":"4","page_number":202,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"28aaa2ba-1d5e-43f3-9986-4dd50c90f65a","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":202,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"232ef972-e6a6-4c35-8005-856d67dab970","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":202,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"b9e4e2b5-d341-4e2e-a561-200998960c2d","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":202,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"e519d57b-15f5-477b-bc82-8f32d20c34f2","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":202,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"1ee2199b-f20d-4b55-9a65-919c0a255d7a","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":202,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"1a41b34e-5c20-4e25-9895-6929bf1a1fdb","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":202,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"f62c2590-0349-4fe2-be29-3be6952f9c19","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":202,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"30013a8a-f06b-4838-b6e5-85181a6d9c5b","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":202,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"6cd808b5-7e20-4b22-aa2c-8c977134175c","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":202,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"1a72b02b-aa95-4e5c-ac3d-cee250c0450b","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":202,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"7def72ba-f843-4000-94e4-bd1d06628c15","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":202,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"057fad7b-2f21-4ad9-b92b-027b8c823a14","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":202,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"5dac2d0f-c499-4903-9643-beb733fd74f1","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":202,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"0ddef670-de31-4360-a2c8-d3b54b0b4fdb","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":202,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"cf4949fd-4cfb-4186-83ac-276bdb1cdc0d","block_type":"box","text":"3","page_number":202,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"d30cb673-ab81-4dfb-96ef-600356977e52","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":202,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"0b038d84-8cc7-402c-8a61-e572e675dc1e","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":202,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"2bd051ec-51cf-4c74-8528-430817646e42","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":202,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"362f8eb7-1e5f-4aca-8aaa-3d3a29b958c9","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":202,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"612bdd1c-e792-4c39-aebe-427871ef7ecc","block_type":"box","text":"4","page_number":202,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"b1844e7c-3072-4669-b2c1-1db46f2fb0cb","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":202,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"6e1dfdde-ee39-474a-bafb-2a4db85021e4","block_type":"box","text":"boards and their members, where relevant.","page_number":202,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"98e2a51e-8703-4a71-ae6a-d63fdf80ec7e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6aa9d9ba-b966-4d4c-88b6-348c928a7b4c","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"acca4983-20bf-49e3-8a53-25fedb912c06","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d8ee91d8-597b-49ea-a3ed-33c305a4b24b","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":203,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"ab97bf1f-b9fd-40cc-ab18-8e9275d54187","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":203,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"b06dc5b4-4d3d-4689-af4c-a017e7002370","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":203,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"f23f5a71-0355-4979-861e-3b4cd8c60cce","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":203,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"c457b589-efa0-445f-998c-3920d8c4f76a","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":203,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"9a0538dd-a938-4e8b-a098-bc2a1240ddd3","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":203,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"924145cf-8e98-4789-bb48-23456775f47e","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":203,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"48084fae-4c5a-4a8b-b7fc-1d87bd3403a9","block_type":"box","text":"5","page_number":203,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"bc92ffc6-a8de-4a03-9e8b-348e5e5e242b","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":203,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"3d4467f2-e250-4372-8f47-94cde3d67377","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":203,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"126e1d0a-058e-4336-8cb0-bc1f9efee13a","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":203,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"8334190d-43eb-4b24-982e-77ca55581aeb","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":203,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"59313653-f565-4785-949e-fcf1fcc22348","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":203,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"1c768756-3d5e-47b1-9515-36531af162ff","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":203,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"21c328d4-87a0-4d04-b32a-0e991fd7b6e6","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":203,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"7049685f-65c9-4c57-b0b1-f500ec559737","block_type":"box","text":"5","page_number":203,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"9ab97a0e-eca3-410c-b466-bcf30b22e768","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":203,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"524c2e5d-777f-4ffb-baa6-2e3b935f71ed","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":203,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"061cb1df-2e65-4878-9288-b133f24feee8","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":203,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"0be5c9ab-5943-4389-9064-e95719652b40","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e96f11b6-8b3a-48b4-ab1e-3f19a84e988c","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":203,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"bea631e1-7307-48a3-9265-09b41bbe37b7","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"428d2448-7bb5-4074-ab53-8b6736c58cef","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":204,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"c0117ebd-4fb9-4332-acb7-8037ae37b0f4","block_type":"box","text":"Roles and responsibilities","page_number":204,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"18f575dd-a600-40c2-9a61-fec2e810fbd0","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":204,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"08cdb896-d580-42f4-a43b-528b8dcb2e29","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":204,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"5d922588-b380-4fa3-bfdf-02996105d52f","block_type":"box","text":"6","page_number":204,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"74b68bd2-25ca-4c23-a85b-33da4471fdb9","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":204,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"1a321041-14a3-4412-a16f-7bfe3b72fe37","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":204,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"7d448586-9379-47e4-af48-6b04a99e0b2d","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":204,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"f6f389ff-4b17-4812-b70f-54a4cf17ea73","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":204,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"3a0d4584-6af2-4cd5-8f02-638c2f414314","block_type":"box","text":"performance over time.","page_number":204,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"0633374e-e629-4e12-a5b8-51b40dd6141d","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":204,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"cd74e6e0-82cd-4806-ba6c-af115200141f","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":204,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"3f2c2fe5-c916-4051-beb6-ddadcc6974c9","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":204,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"67809550-2399-4979-b1e1-b70dc996a9ee","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":204,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"ee3cb1a4-a2bd-4da8-ba8f-9e20543d344e","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":204,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"088f5fe0-118f-4e69-b650-6f52eaa6ef18","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":204,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"bd81d624-83c2-4b62-928e-e088f7c69733","block_type":"box","text":"Composition and effectiveness","page_number":204,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"2315f52f-3c5b-440a-b184-8292ba633f86","block_type":"box","text":"Appointment process","page_number":204,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"0305e925-96c0-4e49-a54d-acfd3745b391","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":204,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"240c3a7f-d968-44ce-b585-960bd5e07a5f","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":204,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"0a5c4a47-27d4-41ec-92c9-173e4c2e837d","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":204,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"2123b80b-055c-4077-a427-714f985dbfa8","block_type":"box","text":"e.g.","page_number":204,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"2e04e5a9-45c8-4bbb-9003-3542e96c3f40","block_type":"box","text":", sector, maturity, geographic","page_number":204,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"e5421b51-d28f-4b93-bdd4-6a1923cfd13c","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":204,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"e02ef925-daf5-401a-a309-48e8eddf11a0","block_type":"box","text":"e.g.","page_number":204,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"27ce4504-69ae-4e81-8e60-199a3d6a6c5d","block_type":"box","text":", financial expertise, industry track record). To","page_number":204,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"b06b79b2-9c02-4eb9-8439-500b043fc027","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":204,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"4cd7216f-4235-44bc-939d-6e0f869f8833","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":204,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"719cd6dc-b7d3-4cf7-8a8f-8f4023e6f9e8","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":204,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"135c1c20-8a28-44a2-81db-e66f92bfe6cc","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":204,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"1369cc3f-f21f-47de-8326-e266e558b933","block_type":"box","text":"and local market requirements.","page_number":204,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"2820e21d-8b30-4460-90c5-46225b85ecc9","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":204,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"eff06b52-0178-4b35-8602-d70b557e25de","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":204,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"9f658b28-3ab6-4e53-a05b-51f6b840e6c2","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":204,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"0bf9a819-97e4-46e8-b498-7a70e2d3ff3e","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":204,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"99635dcb-e7c8-4e82-bb0f-1db3351cb5ed","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":204,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"e0da08c8-d74b-4407-97aa-04ac148ecce7","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":204,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"4df49a44-7621-4289-850d-a8d487c1c6db","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":204,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"baa5d9a0-8d9f-4996-9f91-984cc49cfe08","block_type":"box","text":"Independence","page_number":204,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"0d1cb9b6-9b98-4c98-994d-a148b196013c","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":204,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"41c0058e-91c6-4ede-b36c-72570172a26c","block_type":"box","text":"e.g.","page_number":204,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"717b86aa-7e2b-4bac-96f4-885fa42aa25c","block_type":"box","text":", government or","page_number":204,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"fb3d3345-ca24-4add-85c8-057b41605880","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":204,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"10a8543f-36be-4b8f-bb71-32b1cf8b67e9","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":204,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"e653c51c-c5df-4266-ae61-ac608c730e33","block_type":"box","text":"conflicts of interest or undue influence.","page_number":204,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"7d9d1d0f-45b6-4607-bbf2-c074c682d9d9","block_type":"box","text":"7","page_number":204,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"fab2b8a7-1f4e-4775-b59a-9f26e5ac3e31","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":204,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"7a17554b-0ae5-4236-8141-096666d17b6b","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":204,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"2df17f84-8cf7-4c64-947f-571013f92171","block_type":"box","text":"independence should meet those local requirements.","page_number":204,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"2e3fe058-a0b7-4416-9ee4-4ac95284134c","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":204,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"edf252b8-4c54-49bf-81fd-062a1771f7d9","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":204,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"5aa9661a-d148-435e-9ddd-fe60b00178ce","block_type":"box","text":"composition if this is a perennial issue.","page_number":204,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"897ef286-089e-4ae0-8b67-1fb8809f9863","block_type":"box","text":"6","page_number":204,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"3ebea4ef-c651-4f14-9b16-dfe3c0942f8e","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":204,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"b4aaa753-bda9-424d-b160-f893606664fc","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":204,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"e94f3303-0346-44ec-97a6-7fb0a32a75c2","block_type":"box","text":"7","page_number":204,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"4887a6e7-3794-4c9c-9870-4bf88ec1feb8","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":204,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"00724baf-4ae7-4345-a241-592a84fe2c3a","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":204,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"84f2b0e0-9087-4072-b67a-2c45b355a789","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":204,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"a3fcce81-dafb-47f5-a94f-37acf83d4bab","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":204,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"362d0528-7889-4956-93d1-603b1250ab90","block_type":"box","text":"of the company and shareholders.","page_number":204,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"0ec8d4f2-1567-45ff-aa26-84ef82b6921b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"67cebd8f-5076-4ed7-aca2-183a0af2ee0a","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":204,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8591a6ca-8e2e-47c5-a55b-8acfc0cf5a92","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"36bc64fb-5919-4fb4-ba15-aee8d498ece5","block_type":"box","text":"Independent board leadership","page_number":205,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"770cae88-09b7-46cc-ad7a-c73e25dcbd0b","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":205,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"7d4a824d-bb3e-4439-9514-e5eea8d1a6e6","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":205,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"94106bac-2fde-4b0b-8e2f-a94fe1d0028a","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":205,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"69f39bde-5dce-4e1c-8166-308b4b8db011","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":205,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"3dce0e7a-0077-46bb-8262-e3a182a496ec","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":205,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"aaa7d8f9-a513-484b-8f2f-a89c0137e8ef","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":205,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"cefdaece-ebab-4134-9334-0a83bc3c912d","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":205,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"253bc260-e3ee-4245-a57e-0d0a6ee75ba4","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":205,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"ad316eaf-1980-4554-87c0-d925eae9245b","block_type":"box","text":"how it serves the interests of shareholders.","page_number":205,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"6ff7d9e8-0279-42a7-be7c-196d144f60fa","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":205,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"561cf2b4-2aec-411e-947b-f6ad30292ecd","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":205,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"e95219c8-e793-4162-ae10-c390c0ee950d","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":205,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"0430f71c-17cc-465b-9484-8a871d413fb5","block_type":"box","text":"Tenure and succession","page_number":205,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"6b00a587-5bc8-4c27-9090-f8b07cb91993","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":205,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"9e65cce9-bd40-45e1-a543-ce34fa9b1810","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":205,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"9aaf17b8-6555-4257-b7a2-02311d03b33e","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":205,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"f7fe71bb-d90b-411d-8a10-7526a2641cea","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":205,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"939542c7-3262-411f-9746-d7d22010d4d2","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":205,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"a9070e0e-41ce-46c5-a468-18b646b38f12","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":205,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"6db9840c-1e1a-4264-971d-fc6af78b8367","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":205,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"3e9c9413-eced-46c9-97cf-2a314b99efa2","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":205,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"f9b713d4-7dd5-4f72-937d-cc7cbeb08d5b","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":205,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"1acf8c9d-440f-40f3-ab38-920dae9e75bb","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":205,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"5392f92f-01fc-4479-8646-a74e4e5dbe16","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":205,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"a6395d17-e8c7-4833-b456-fa021687ffac","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":205,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"178e4292-ce77-42cc-9b62-91b14df7d01b","block_type":"box","text":"for their continued service is not evident.","page_number":205,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"8a975617-1145-43d6-886a-9673405dc3c7","block_type":"box","text":"Capacity","page_number":205,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"9426eceb-50ef-41e3-81c9-4585a68fe97c","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":205,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"276da4c1-b622-4059-952c-7085b8708bea","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":205,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"66629a7a-f2b5-4133-bf74-0be9548e5dd4","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":205,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"47c25240-62e9-49eb-87e6-62b54b948637","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":205,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"56ea23e2-cee8-446d-9a0d-7038aeeadbaa","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":205,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"4948817f-6311-462e-9116-0ceca7044170","block_type":"box","text":"determinations across markets.","page_number":205,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"84b229b4-d5e5-41b7-986c-371c09c327b5","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":205,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"e6e38fbe-a4e4-4307-bb7b-ef307bef892a","block_type":"box","text":"their duties to the board and company.","page_number":205,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"a7070ed9-bc44-4d9c-ab8e-1322a4ffe7df","block_type":"box","text":"Director elections","page_number":205,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"36170430-cb99-42bf-9308-a21dab5f2a6d","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":205,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"163c466f-7c6e-4da6-91a4-802bcf5b9a08","block_type":"box","text":"structure","page_number":205,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"1a5a2434-d933-444b-a630-c4baf664c3af","block_type":"box","text":"8","page_number":205,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"920b2397-948b-45b8-9001-c274cf4719c7","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":205,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"fd3d4b60-3de7-4a15-9857-5ef435110b13","block_type":"box","text":"basis of its business model (","page_number":205,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"f56fb8c8-d244-4369-ba70-4224c222cd42","block_type":"box","text":"e.g.","page_number":205,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"54f3d60f-ba1f-4d56-8540-036ad35a9200","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":205,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"27776e12-9601-4111-a62a-1576b9c1eebf","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":205,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"231e188e-5bd3-4a0a-b276-9790d5f6a84d","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":205,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"8dad5318-3570-4549-a3df-6db2bb1c75bd","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":205,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"d9095fe5-35a8-4e1a-8d61-6cfe7056f804","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":205,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"28a4ecf6-4a75-41d4-bce7-6be0b2232dbf","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":205,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"c139fe3e-e5da-4e9c-96ca-c5f2c51ab55f","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":205,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"948a0576-a1b5-442f-89bf-c155b30fe24c","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":205,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"f9b54d56-feb8-48d8-8089-554608492b3e","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":205,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"93514845-c0ec-4d5a-9210-74764f9b9f3a","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":205,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"ddfaec8c-747e-485c-a9b7-cb246818565e","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":205,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"02817acf-1443-4af4-975c-7b4bee167fae","block_type":"box","text":"8","page_number":205,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"3379bd8b-b764-4846-b485-258321daad29","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":205,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"d70bd012-a38a-467f-9df7-cd9990df144e","block_type":"box","text":"directors stands for election in any one year.","page_number":205,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"897e3caf-dab2-425f-b060-4b9dc54e6327","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"af85c8ce-fc5c-43ea-b0f2-737fd50b4613","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":205,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9d98217e-db9d-49a1-9544-62586a100983","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fea18fbe-1549-4001-9a07-f21a5b3e6d8a","block_type":"box","text":"Committees","page_number":206,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"32c51497-8ceb-46e1-9246-81aaa57b0534","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":206,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"17616f4e-6164-4934-83d1-d0cf16c4fecd","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":206,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"3909f136-5329-4def-a417-ae1068d3263f","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":206,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"67c5d194-fff0-4731-a96a-66d0ae4b3781","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":206,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"a2aca524-d125-432b-b7f5-917f789843c7","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":206,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"6d152861-d0aa-49bd-9a5b-dcda62df91c2","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":206,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"1287bb87-3d4a-4716-b63f-cc164ae9b9cd","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":206,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"05575511-ec70-4fce-ac43-b697ad762607","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":206,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"5c15c69c-e988-42c3-906d-b340542debb2","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"0a2a614c-eb34-43b0-a209-a02f2b3943fa","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":206,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"546af0fc-5adc-4ed0-aac6-3635f538daee","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":206,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"58edb986-3b9b-4fea-81c2-d7deb61efcd9","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":206,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"9c12df76-44a9-4e21-9ede-b2e589e2c51e","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"2ebe208b-75ee-4fd0-bf3a-0d66000de035","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":206,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"32f30987-5cec-4ed0-a8c7-0bc701145400","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":206,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"6e983b84-fffe-461c-9f41-d6fec2b4ff67","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":206,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"ec37bd0b-b077-4b52-9826-93a6c115065e","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":206,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"8e2b8bf6-ba6f-4cca-8480-a4a986cce48c","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"cb53844e-2fb0-4f0b-83b0-776e5d8054ba","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":206,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"c3d50815-c52a-4886-a3a1-9995752ff5dc","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":206,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"c8b216ba-60da-427b-8667-551eaa94d866","block_type":"box","text":"firm-wide compensation policies.","page_number":206,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"3032d89f-ee48-4823-b650-2cc034e7f9de","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":206,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"98234345-7265-48c3-8141-af971f69c1b5","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":206,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"c3c5ea2c-f3e2-4256-9927-d8ecab469305","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":206,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"26d895dd-f765-4a72-8506-ff97eb4a0fcc","block_type":"box","text":"Board and director evaluation","page_number":206,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"d62fdc75-c3f2-4b96-991a-c63ef636492b","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":206,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"1ab491c6-412e-4f99-82cf-1c714b524461","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":206,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"1b3f1ca7-bd0a-4258-8ef2-910af776f3ec","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":206,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"0ad6cbf7-9fc2-4715-9a1f-d042ced067ed","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":206,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"f6a2a3a8-590b-4dcb-b797-ff225e0114d3","block_type":"box","text":"a result.","page_number":206,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"278a0918-b4fd-4da4-a8ee-96332ef5287b","block_type":"box","text":"Access to independent advice","page_number":206,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"c4782590-c7a0-4bde-aad2-bfb2a92b184c","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":206,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"47322d7f-b28e-4cb4-b2d9-ab2badcf0f13","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":206,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"6bf9e800-bb0b-4148-b59d-b13dd3ca24f1","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":206,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"c15703e8-8484-4a67-a6fc-ca57865b83c4","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":206,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"d70a41e6-7cf7-437a-972d-271526c8f2c5","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":206,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"0af7c872-331a-4f6c-aa26-2815e10e2db5","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":206,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"ee8a05e8-b2f9-47ec-a099-61d5e141bbaa","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":206,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"97ea8267-22be-459f-bd40-25ec6f420222","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":206,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"5721a145-a894-4526-85b7-2b6418bf42ad","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":206,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"dfee7cc2-e282-42ee-8083-b5b29af55b67","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":206,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"09ff27e8-3d41-4cdf-bbbc-f71f154bd73b","block_type":"box","text":"performance.","page_number":206,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"cfdcad68-eaeb-4ae5-9c94-9664df05dec4","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":206,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"d251f8bd-5380-473a-94dd-b0abaae1efdb","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":206,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"82375af2-5320-4c25-85d7-ac01770456b7","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":206,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"adcf0d25-32cc-4014-bc95-a2bb85b270d1","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":206,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"9f91104f-9da5-4bc9-87b2-31527d969974","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":206,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"b8ed8daf-0d90-4a28-a055-76bf1b66e9ad","block_type":"box","text":"recruit and motivate.","page_number":206,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"ea87caa6-9b22-4663-8468-64e64db1cd76","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":206,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"775f8aab-f1b9-4e06-8a8e-2bf82e4c269b","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":206,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"3009c740-022b-4cf9-9038-7bf755312f4d","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":206,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"1b025afa-2c60-4324-807a-a29f0044cb84","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":206,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"fbbb0832-7f93-4a2f-9430-4571e296becb","block_type":"box","text":"arrangements include:","page_number":206,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"570b848e-b34e-4414-8271-fbcedef91de5","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"add60c92-cd68-4c35-9886-9159c5b9d427","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":206,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"bc9d00aa-3f69-44c5-abf2-9140c07f2634","block_type":"box","text":"the company’s size, sector and market.","page_number":206,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"95feb31e-59d6-48e2-8b70-cea62e9c8b70","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"783b45f7-7719-4278-b343-ef0bcfe3f9c6","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":206,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ff8ff4da-3cbb-4c36-a24b-4310ad5c0e6c","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a420759e-a55d-4b00-9cfa-6bd0761d838f","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"6465c3f4-fc39-4e7a-beae-0ef4914fbe82","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":207,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"31c307c7-5a6d-4d93-878b-5798c4857b5c","block_type":"box","text":"strategic objectives.","page_number":207,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"e3a8ef1f-c4e1-447e-87ca-084dafaca939","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"0716f7ce-48f9-4ee7-a83e-47fb0c2d73b4","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":207,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"4e0611fd-ba53-4171-8119-87bab2c4c57e","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"cb16d23b-e985-436a-b5ba-784f543fa882","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":207,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"a59a67cc-d43b-48cd-9c14-9b03478b50ce","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":207,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"017aec62-47f6-4201-8b68-713ab66e3734","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"699e9bc3-eaf0-42e5-b65b-5f67619ed69e","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":207,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"5ab28efe-f028-434c-9e22-9a7aa1c4c043","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"51a4f63e-6d28-49c1-916c-ac97dbc6639f","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":207,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"2833c5da-0ee6-42a5-92ec-eb7f639b4738","block_type":"box","text":"transparently.","page_number":207,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"3ff66441-5c85-4164-96ec-1dfb01e58f2b","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"d3b30f7d-f101-4a77-a6f9-d437f2cac640","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":207,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"5d7067a5-f01b-4b36-b29e-b5cfa70d2242","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":207,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"604a61ea-bc45-4220-9916-5f9cbbca127e","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"ddedf2c9-93c4-4522-862f-a175ca37bbe6","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":207,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"84155ed3-b0ab-406b-ba3c-d1e847b277f8","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"e9b6f1a8-cb40-473a-b967-5e4812b3fd7c","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":207,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"21b68ca8-cb60-4f9d-993f-951512e39a99","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":207,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"46690ae0-b327-473c-882c-dce17a442025","block_type":"box","text":"misconduct.","page_number":207,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"4c6c3f0b-cbfc-4627-979e-0317cfdb072a","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"54cba250-c081-4a55-805b-d5b8fb2df123","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":207,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"3194c479-0508-4ad5-8986-b9528d71b36d","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":207,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"99326d9e-804b-46d7-8441-147bde621a95","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":207,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"38704db1-6ca7-49b3-8466-fa6638bdd520","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":207,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"babbcb13-9864-477f-ac76-a2f031397191","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":207,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"623e7f0c-79f9-418e-bf9f-ae675dd36383","block_type":"box","text":"committee, or the most senior independent director.","page_number":207,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"299bff0d-51dd-4677-be41-dd1468d0dc62","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":207,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"b9e56a68-003d-4de7-91f0-52382ef7e9e1","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":207,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"092c5de6-1e9d-457f-8694-62bc50092387","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":207,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"462892fe-c1ac-4c51-9622-7de81bddb368","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":207,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"9cbf4b72-180e-4a8b-8c14-46cab70416e1","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":207,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"f1bc0de9-c32c-4a57-bef7-7519f68dada2","block_type":"box","text":"CAPITAL STRUCTURE","page_number":207,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"5283ae97-494e-4300-9c4a-91870987b0bf","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":207,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"413003af-7715-4b32-97fd-b5baadbccf88","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":207,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"c8c9c504-0c5d-455e-bd5d-731ef9901612","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":207,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"645a7bdd-e0df-4b5a-b954-0342e5baf732","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":207,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"638d88d8-e685-4df4-86b2-eff335c20b4a","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":207,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"7887e231-73dc-41bb-89eb-f5ac25e33375","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":207,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"e264ea4d-5e51-4e2c-b483-c3a9dd56ae09","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":207,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"c6f17d38-9981-4c7b-81df-218888a32faa","block_type":"box","text":"Share issuance","page_number":207,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"e90a839c-7448-466b-8151-977e7ac8a267","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":207,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"fc083720-7d59-4f5e-b24d-c59e108e66b8","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":207,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"118c3c67-2072-4397-9b24-9f6ab430812a","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":207,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"2696b54a-bccc-4389-9392-07c192841a3a","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":207,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"ab850d2e-7920-4066-85a6-4dc54305a92f","block_type":"box","text":"market environment.","page_number":207,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"fe8fc7ab-1480-4362-a9e9-a1ac53f815de","block_type":"box","text":"Share buybacks","page_number":207,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"f166fe35-4b39-4859-8fc6-0b87484e20cd","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":207,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"abc66337-2aa2-4326-be3f-28516a7fb3ff","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":207,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"fc2c76e4-dc31-4149-89b7-f3629172db19","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":207,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"0fb117d9-4f9f-483a-a942-2b86a042523a","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":207,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"84068d37-cdec-4372-808e-a57694f4ea8b","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":207,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"cb91cc49-baa8-404e-84fe-7961d20ef203","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":207,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"814f297a-460b-4984-9c00-e63a116972af","block_type":"box","text":"of the company and the market environment.","page_number":207,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"b53b0912-2bee-445a-8a77-633ff5db162a","block_type":"box","text":"Dividends","page_number":207,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"94a8ee7c-57da-4c68-9588-1fbf3994bd90","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":207,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"ea32e7ff-33ca-44c0-9e03-fb29eecac3e8","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":207,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"25aaf133-c72c-450c-9310-4256e3264a91","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8c999f3b-33b7-413a-bcea-cba441d716ef","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":207,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"68a571d0-4424-445b-81f2-3fe46ac4552f","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4db14bfb-597f-40e8-ae18-204b491e96b4","block_type":"box","text":"Differentiated voting rights","page_number":208,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"ce41b57c-ced5-47f2-a9a7-6b8046d1c56f","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":208,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"4a1b4417-b81e-4b51-bc0f-657cb74be66b","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":208,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"fe21897e-a89c-4b01-a5c7-2e47d9df78b1","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":208,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"27173191-2121-4904-ac4c-fdb3c715117c","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":208,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"c538fd50-82df-493f-8d8b-2f4a48335917","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":208,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"c0fff303-895f-45c3-801b-00fb260c68fc","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":208,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"4bad43dc-30e9-4720-a7f8-88278ce9dafa","block_type":"box","text":"analyses of proposals.","page_number":208,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"25d02e2c-9419-4c8d-960d-c750f5a266bc","block_type":"box","text":"Mergers and acquisitions","page_number":208,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"dca6b19b-1d1a-401a-bd2a-63f8d1e8bfc3","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":208,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"dc0732b9-8ae0-42f0-a60e-ed7fb4ecead5","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":208,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"1025d33a-32c1-46ac-a4dc-1f541bed40fc","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":208,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"a208b0cd-ca20-41b4-9ace-4ce636ead079","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":208,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"04036122-b334-4ccb-9645-05d2d561b76b","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":208,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"20f21924-d771-4a16-8051-96abda843c42","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":208,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"3726c606-fd80-44f3-baee-9cff21c80382","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":208,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"1d0cf55f-1b4e-42e7-bded-39cc2e4ad74c","block_type":"box","text":"Anti-takeover defenses","page_number":208,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"d50f6489-79af-4ee4-a233-dc664606f0bf","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":208,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"0dd6f407-42fd-42fc-a044-185c80637284","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":208,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"34bb8633-b42d-4f8f-8b43-0b8d8183f9b4","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":208,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"8f680dd8-24f7-4194-a328-a6b235d91b5a","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":208,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"17d1d0a3-41a1-46b2-a549-5da849a1f1e6","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":208,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"a0d6c9c8-a314-4a22-9050-eb4a3dc4f529","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":208,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"94cd791f-e7e4-4d81-8960-7650fdf6782e","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":208,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"d667154d-27c2-4590-bb82-81e5ad5ed961","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":208,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"15378733-13bf-4eb2-ba1a-5360d4c878ee","block_type":"box","text":"Shareholder activism","page_number":208,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"8a1d432f-8f5f-4bc7-b58f-cda9ac295ef2","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":208,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"69ee9a2e-601b-4641-bbec-825276ed0cff","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":208,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"f2f0ed36-de4e-4479-b88f-96781d1f76b1","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":208,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"0cd49dba-7e4d-475f-b799-0982e33bd6ba","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":208,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"5232e201-1f2e-485d-bfad-639801accbd9","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":208,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"a2daf424-606f-49dd-8f0c-c8cc28d32eed","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":208,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"b708f37c-9c66-4234-aa05-1ade58205f63","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":208,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"751a2804-5214-4377-b7db-a5c8eccaa219","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":208,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"acbb6865-905a-406c-8abf-0efcd62e02fb","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":208,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"53487ee8-e332-4230-b842-b891fa2bf39d","block_type":"box","text":"protecting shareholders’ interests.","page_number":208,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"42608143-5f16-4eaa-8f7a-83125d707cec","block_type":"box","text":"Significant shareholders and related party transactions","page_number":208,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"59974b47-822e-402b-bf7b-1037a9566e48","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":208,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"564f4fbe-0e30-4698-9abd-6c7636aceee1","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":208,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"b0772171-0b6e-4bc8-9544-10e843009394","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":208,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"d268bda9-d759-40fc-9a9e-131383a5aee1","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":208,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"b76c2036-3453-4da2-b45a-adf7ee13a3ab","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":208,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"b230b341-b2a4-441a-b47c-65c60b338241","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":208,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"32cd7ce3-9b7c-45a9-b5eb-97f269094fbf","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":208,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"e0f0527a-3f33-4294-80c4-a65230c9074d","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":208,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"8ee068c8-d3cb-467b-9a12-2f35e4b67bb7","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":208,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"37b81cb3-0052-4502-b5a8-816463bff0cd","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":208,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"912dee91-4d01-44f4-b130-dfe4034ace6b","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":208,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"8a8d0ba2-8fc0-4bda-a5aa-eee32da35145","block_type":"box","text":"audit.","page_number":208,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"a37a8fb2-5dc3-4777-bd31-2ace509818b2","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":208,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"139182ad-b259-4005-963b-d80477b99efc","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":208,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"5dcfc363-77f2-4c70-8a03-58e6b77fa085","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":208,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"0a77fd6c-5576-4afd-b0e5-06dfb9222443","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c6e20603-cee5-4e12-ae60-186ea41e1906","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"e47a9ce8-d171-439c-8d19-249b043d52c5","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31cbb807-c3c3-45c7-b512-c0370d923c49","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":209,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"13773dac-1355-420a-8da5-3b2efaa1d6fa","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":209,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"223a6568-e3c5-4d6b-9dc5-215b8995ff60","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":209,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"44e868d1-c3b0-4199-a48a-6ebdf82bd542","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":209,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"998e468a-7bfb-4ca9-9162-b5fbf4a93e2f","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":209,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"3027a8ec-0b08-4293-ae37-6679cf7ef7b3","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":209,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"2e39d836-f849-4a25-aaae-1cc5577c308b","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":209,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"ae1ee08d-8fe9-4d6e-a7db-d95015ef53a3","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":209,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"4617dc82-3af3-4886-8f28-f67397eff639","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":209,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"b12ecc68-7781-40b4-ac47-41767447b378","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":209,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"e49170ab-36d7-48a1-93a9-3ebc82f0756a","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":209,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"de8fd197-106d-4eb4-9f4f-460442b525cd","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":209,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"f3de646f-a7d4-4718-9270-a0c8abfb94d9","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":209,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"83bb0005-9244-42c9-b906-5b2ec06b390a","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":209,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"364618e7-4bc4-4c3c-9ee2-ed6caa234279","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":209,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"4098db4e-9ba1-4ea1-b593-7050a01d5b80","block_type":"box","text":"9","page_number":209,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"a55fa89d-b212-48e1-9a7b-eac54493c1a6","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":209,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"2e5756f6-1bcf-4b70-aa3d-9f62ebdc35eb","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":209,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"b4d690f9-4349-44ff-ba56-aa81607460ba","block_type":"box","text":"standards specified by policy makers.","page_number":209,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"7123e20c-162d-4161-b8c0-5c99c9f0bacf","block_type":"box","text":"10","page_number":209,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"68bee81a-6c18-4519-a0a6-e2e244aeb023","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":209,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"740afa56-68d7-4873-8510-5e7f785ae717","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":209,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"f50cc96f-de0b-40cb-a81f-d27a1ddb7c60","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":209,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"f40e6729-f601-4c5d-801f-9abb900ef32c","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":209,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"75cd3cf2-6fe7-458f-821a-ec5784569412","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":209,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"42993e10-fc8b-4ab7-85ae-5ff1cabb470d","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":209,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"20b530a5-e0a5-43b1-a4db-2555ad792ed0","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":209,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"ccc2f802-be5e-449c-a577-85705d2fc990","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":209,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"9217c4ee-d1ca-47f1-9635-fc334c9e6899","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":209,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"9e4f3830-1bac-4866-bfda-f32d76e36541","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":209,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"19436e1e-60c8-4b24-b065-5251c1cce836","block_type":"box","text":"remained independent.","page_number":209,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"071349e9-b325-4491-85ab-69bd27dd6646","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":209,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"53f2b233-7220-4960-a61d-7a3dca693f96","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":209,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"e4e7c3a3-558b-4d42-9cda-230245fe1f94","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":209,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"2cae9141-e29e-40af-ac01-115492dd4d4a","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":209,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"38ffe4f6-b866-40b1-9907-eac68cc5cc54","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":209,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"ac21a8f0-6931-464d-b46a-077b1be211cd","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":209,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"81a33d0a-5a3c-46c7-87e5-9ad5be6d09bf","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":209,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"60900755-213f-4cc8-b138-acd5e05b74e1","block_type":"box","text":"General shareholder meetings","page_number":209,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"30b8e053-2b7e-4afa-96b3-51126bcd4d74","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":209,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"bf57c738-de6d-411b-9ab5-36359a95f5a0","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":209,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"3cd8ac5e-26e4-4349-a19f-de4063e73456","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":209,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"c87c4965-cb0d-4a9b-aaf3-e5f77cfd86fc","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":209,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"2ea2b74f-cda7-4787-b7ea-d5cb739c32c2","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":209,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"7d63254c-1447-4616-9dc4-cda52bd8a37a","block_type":"box","text":"an in-person meeting.","page_number":209,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"2e3d162c-17ea-45c2-a658-9067916c38fd","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":209,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"9a853340-0711-4ac1-9fe1-9b756ea6aed3","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":209,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"25cd5815-c882-4f86-8858-1b3d72591158","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":209,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"3d28cca2-039b-45f1-afe4-c23e1857d195","block_type":"box","text":"participation.","page_number":209,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"45b026bc-2485-458b-93f4-05a38b5fea54","block_type":"box","text":"9","page_number":209,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"3d1a4975-6589-4cff-bf85-19b21097fd44","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":209,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"b1f6fda2-0c87-464c-92d9-d750ee8cc2cc","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":209,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"e976225c-f1cf-4467-b7db-0db7d1367ae8","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":209,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"876c3ba8-be80-4284-afbb-f1a0d6389f7b","block_type":"box","text":"Disclosures.”","page_number":209,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"80850f63-4cc2-4a0a-bdd7-f428d08d7551","block_type":"box","text":"10","page_number":209,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"827369c8-576e-461c-b07e-4509ca81eece","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":209,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"efa46ee1-6ee4-43a3-bf4c-8408ed05eec4","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":209,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"6c8dbea2-ea6e-464c-a5c7-87d6a18cb944","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":209,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"16cacce6-2a3b-4425-a468-f819c190e32b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a430bec9-3ab7-4a86-bdd0-45f2514fd2ee","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"22b7dfca-0452-4407-9b90-b9ee6d85f88a","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86e32778-6f16-41f7-9b25-13f0f473c95c","block_type":"box","text":"Bylaw amendments","page_number":210,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"48f95ac1-78dc-4bad-94be-e8acda2833f9","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":210,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"7fb253f4-98dd-4452-8692-42b09aecef11","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":210,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"e57e09c7-e67a-4940-9d6c-660e0a9b90c1","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":210,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"ab6d2464-5d98-4e71-a2f1-1ade1c6a3c5a","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":210,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"3993732b-4dac-4e74-9757-535d74ad8b2e","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":210,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"16b0a844-3997-4238-a658-2fab1bf1b7d4","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":210,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"9b48bbc7-42ee-4827-b92a-760d9d25b642","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":210,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"1159945a-a0a3-4757-b0b6-2182d2bce03c","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":210,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"23094baf-1ed2-43d2-9c41-31b2112fca53","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":210,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"67d84128-a04b-47a0-8927-e6cc7c61350d","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":210,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"ce9bfd4e-ccfd-460f-af6a-9e6ac4f19744","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":210,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"4ddce43c-4f64-4932-a47a-388b90bd141c","block_type":"box","text":"nomination process.","page_number":210,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"af9e0704-8a5e-4adb-b2b0-a463daabe967","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":210,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"078b5108-353d-4e68-ad47-009f91b3e5bd","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":210,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"495d7ada-0ae0-487b-ae00-a6dabbd0a22a","block_type":"box","text":"Change of domicile","page_number":210,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"5d5c1de2-a1ff-40d4-97fe-0d792cb48ac1","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":210,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"e5cc3c86-374c-4369-805b-89afa3353546","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":210,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"47a1cdba-2f21-421c-9930-d226c524dcbb","block_type":"box","text":"immaterial.","page_number":210,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"3f195b26-b95c-47ac-b5a0-5d510844763f","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":210,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"6055eead-ed46-46b2-9cee-7b6f35ae4cd6","block_type":"box","text":"with our clients’ financial interests.","page_number":210,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"6a4c5251-dc24-4d49-80f5-a6f1fd5e8823","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":210,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"353a8d85-85a0-4058-b64f-3f8f41b38b55","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":210,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"bace7025-0d38-4a7b-a944-327744f3deb2","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":210,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"43c616b5-4f4e-4111-b87b-23715ddd0d6d","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":210,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"2db34ecc-09cd-4bc7-a24a-6faff954f1be","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":210,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"61e20c63-9fee-47ae-a634-2a1f1a7a051c","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":210,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"644ff485-bd97-434f-a1b3-5de6f64140e6","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":210,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"6b7b63d4-6e01-4901-b353-ab0aa2469f12","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":210,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"a468bebd-1be7-4801-b29c-74239a2cc687","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":210,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"993a6b9f-a7be-42ab-a4c3-ce8171d1e9a1","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":210,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"22327987-0fb3-462f-9936-0993622eadfa","block_type":"box","text":"relevant to a company’s business.","page_number":210,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"fbb920e3-b296-43ae-bd0f-f072c2a98e71","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":210,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"4908c56d-db6a-416b-9c82-0dfd68f3a252","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":210,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"71ab184a-f16e-4ce9-b1c9-00085ff25477","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":210,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"8c822f54-7283-4630-91ee-c0ff97ee141c","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":210,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"f09f8feb-d130-4230-a543-d49a9077ddfc","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":210,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"b2b598d7-1d4d-4eb4-9911-5245d547dedd","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":210,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"9be177d5-0e20-471a-91c6-9f60568a504a","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":210,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"222c5100-6d72-46fa-8fd0-d7aa4f3811d7","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":210,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"7614e258-e422-4bad-8e10-b30cf9023fd1","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":210,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"28f11719-5227-4c16-8a2d-7ff6ea503fc1","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":210,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"51f3b834-de4b-4b8b-8442-fd5532e3cb63","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":210,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"b25ff267-c227-475c-af38-e786b1549f30","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":210,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"5d5cbf47-ae73-4048-8ec9-927e86116d2b","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":210,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"a3044e58-d455-4703-ab4b-856f55d34a28","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":210,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"3351827f-4e8c-4a3f-a2e4-cab2d7ac7993","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":210,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"db3af816-6079-46e9-8bff-67d8c2d42f83","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":210,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"b05daafd-eb2a-4dc4-ae04-ca121365191f","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":210,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"c57b5a17-8311-40c7-92fe-8c9192c6096f","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":210,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"8fae05f7-0112-4dc4-a4c3-76993540b763","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":210,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"997a2ff9-6271-448e-a315-e664be51a999","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":210,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"53c9015b-4195-4817-a304-db2bd6f89c27","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7bf7b8ec-94ff-40d0-adf6-873d8a557899","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":210,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"aa7d0727-cfe4-453b-b081-fd6eb5e10acf","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c97677c-fd1b-4c89-b1d4-fc3e22040601","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":211,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"67e7c6c5-0a66-4467-821e-5e24ab2c1268","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":211,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"77b8d9a8-07db-4d9d-8e54-04579cf7e719","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":211,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"72f9ea16-af68-482f-ad05-5addbc88ba91","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":211,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"e3db7908-cde9-4e12-aaf5-230b89fd9b32","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":211,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"c9ac0526-07ff-4470-b191-465000be4d49","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":211,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"7e85eb10-789f-4471-8419-76c68c420f98","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":211,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"b8d1ba88-2c6b-4324-8cf6-d3f4f55c5533","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":211,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"07541cb8-97a7-4e74-bef4-bdb356a37035","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"01ad99fb-050a-46db-98c3-cc6978defc2a","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":211,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a8a3c6a1-0ba2-46f3-9d1d-c563044498db","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"75fdcb45-9346-4ce4-bb54-87dd2031b6b7","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":212,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"f8e2461b-6190-4ce0-8b45-f342d4194652","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":212,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"431fe611-4d3a-478c-8dc4-454e812091e1","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":212,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"a19937db-a944-4936-ad0e-b68153715ad0","block_type":"box","text":"11","page_number":212,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"896521d9-857f-42ca-a520-ef9008bbf537","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":212,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"ed93ce96-626e-4f6c-8fdf-96dd0b5a8d05","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":212,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"af1ebe9d-5ece-4efa-9fd9-34bcd68f4fe3","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":212,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"1571f2b5-b49c-45e7-9854-79f4c5475b0f","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":212,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"4d48e945-96e9-430a-a1b6-ca022723e3b4","block_type":"box","text":"regulatory requirements.","page_number":212,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"ddf49f55-7bc8-40ba-88b5-2a734a61dad8","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":212,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"32e934d6-dad2-4b02-ab66-952a92968600","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":212,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"6d8d0a83-43d6-4b77-8065-7eb00503ce40","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":212,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"70f9c5c9-820b-4a3d-b492-a0448ba8ec4e","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":212,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"d0253021-0552-4739-b627-459c8ad92517","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":212,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"3c18d809-eb09-49eb-95e7-394e0faf70f0","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":212,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"77a20f0b-92f7-41fd-9c92-86058c2ecacd","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":212,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"6a5af7bf-50c2-4300-8107-25f8bbbc8221","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":212,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"be58e8a9-df17-4a75-97ba-46a00bc07c97","block_type":"box","text":"returns.","page_number":212,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"fa7e9bc0-4d90-4a68-af08-0ffbe4bfdb2a","block_type":"box","text":"KEY STAKEHOLDERS","page_number":212,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"166d479e-62cf-4fa7-83af-252438670a44","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":212,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"402eaab2-f2b7-461e-9a14-2f7076d7d766","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":212,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"cace2be1-e650-41d8-9ee0-78cedee42d70","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":212,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"08632af1-ad08-4cbb-a55e-c72a4054b002","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":212,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"b0b36294-2e6f-4c29-8e1e-bf3c61bfa364","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":212,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"afc52784-769b-4d55-a37c-a0d05853f164","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":212,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"7d1ed45c-144b-4f96-b978-b30d91718dc9","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":212,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"d0aa4c35-594a-4994-8eef-9e1bc44a84e4","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":212,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"11781245-9148-48ec-9f12-3bdc97ec2d2e","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":212,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"9673bf9a-f3f0-4050-a326-757ca5bd5231","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":212,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"033d20ac-4c11-4b56-b550-3c7cd4a259cf","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":212,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"d6767f32-ae53-4a5a-837f-08ad29e4a8eb","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":212,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"c382b725-80a0-45a2-8f4a-05ff21826632","block_type":"box","text":"i.e.","page_number":212,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"7eb52fb2-a863-4945-b718-8337f1b79fb4","block_type":"box","text":", one in which global","page_number":212,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"e3199827-0b49-4d34-b18d-c8de8fa29054","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":212,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"85805bd7-7636-4301-a1ef-b91b69b933ec","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":212,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"2e2af6af-a35b-41f6-a241-dfc4b956cac5","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":212,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"b2bc5a77-2667-414f-9d83-0675da3ff79d","block_type":"box","text":"client.","page_number":212,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"27d87054-1cf4-470a-9e82-2e0c029edfd8","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":212,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"0aeb86bf-c37a-42f2-9925-12d901cb3ecc","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":212,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"dea71f18-67bd-4eea-8eeb-be151c42ab61","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":212,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"a134b230-c6eb-43e4-9176-e195d57722d2","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":212,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"c2232044-2396-4423-b204-5e328bc58229","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":212,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"db4d0905-a4b4-4767-8f81-63d0cab89ea3","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":212,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"d775ff2e-2d2c-40c5-99b8-224a7f310b40","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":212,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"a6ffc28e-a378-4d36-b1ce-a7df80f3d64b","block_type":"box","text":"1 and 2 emissions.","page_number":212,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"07af3bd1-01df-4913-bfb6-2062a57580c9","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":212,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"b9261e4a-4f65-490d-98d1-5fbb653c9362","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":212,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"214f78d8-a7d7-4d19-be26-a3422b047fd8","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":212,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"80c6887f-a93d-4694-9cae-bc6d1e8c6a12","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":212,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"75cf56be-bc00-4c98-8389-fba55caeec70","block_type":"box","text":"11","page_number":212,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"82bcd436-bd10-4fe9-9268-f1a2cc8b26dd","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":212,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"6f41b320-1617-45ac-9362-a394feb0b7a9","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":212,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"c3db4fce-7dd7-4d0d-99d3-69ee5c2a25ec","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":212,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"72c46b0f-d2b3-49cc-8e1f-1651e7e07ec0","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":212,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"c9c4eb69-1396-47d8-a064-91642ecb11eb","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":212,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"a0140287-194d-481b-bb7a-09bb91929ecb","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":212,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"253c8cfb-15c2-4258-ae6f-4a5753c0ab86","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":212,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"50926dc8-d28a-4dd2-a513-0204d5338bb9","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":212,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"0e95aa36-0290-4b0e-874f-1378dd9c1228","block_type":"box","text":"sound governance framework.","page_number":212,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"ed09b8fe-270a-4c84-9bd3-7601cbef8d09","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"299d9ed5-58d3-4dce-99b3-1d49222430dc","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":212,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"17099564-c3b9-435c-a4d5-8fafaf12545c","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf4906b4-74b4-42d7-84c8-5ea0be757892","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":213,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"0ce0d26c-0cd3-4f22-a4cb-8fac6627aaac","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":213,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"b5516e03-8cae-487e-95db-17985828a4ce","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":213,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"851ec6a0-68cd-44a7-b0c9-24c2f03db672","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":213,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"6dc910f4-7f27-49d5-8090-4ce0d1db79af","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":213,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"03ef6ed9-9114-4c79-9479-c16b855f2ac9","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":213,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"cf80c4e9-c1a5-4679-b09c-cfbd542786c2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"bf8d8ffe-2dfd-468c-b427-ae1f61061a36","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":213,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f2428cb1-65a2-4f4d-afcf-c0b602d62f5a","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f1ae6b50-51e1-4824-a0fd-a51561c4493d","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":214,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"fe1077c1-e156-4dd7-84c8-eb6e8a7e5e47","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":214,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"2fa5bec2-f4c4-46b8-a420-2cdf9b43c4a7","block_type":"box","text":"Oversight","page_number":214,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"699e2e92-a926-465d-9ce4-99ef40fbdedd","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":214,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"628e2d8f-8d66-4fb7-b42b-10947284a93d","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":214,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"d683cec2-16ef-401c-8aa7-4e2a7e4ae2bc","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":214,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"7381517e-9e14-4269-8df1-6fdd8f74f9a5","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"7a4b5584-50c3-49f9-8604-5632ce1353ce","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":214,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"d3b6a083-e9c1-4148-8a21-78fa505df703","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":214,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"8de36c13-3368-4ba8-b50f-d90a1f71cb5a","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":214,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"74cb8fe1-6719-47ef-ab03-01b710356431","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":214,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"c9e72e0f-de35-4302-ac37-0309bb81ff52","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":214,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"9cb67805-cdba-4474-9bcc-3520fe0a83b1","block_type":"box","text":"relevant active equity investors.","page_number":214,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"4b60d8b7-779b-4f0a-9c93-22c4ef6701dd","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":214,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"bde9419e-028f-4c56-a5e0-358c12ae83fd","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":214,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"b4014384-2704-4863-a477-dc565541d7aa","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":214,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"1d6277f1-8a81-42f2-9790-ee1775fdb25a","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":214,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"4ede661b-1bd7-4eb3-bf52-4d8ee987a2d5","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":214,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"51f5b273-e304-408b-b7f2-871b66206622","block_type":"box","text":"third-party vote services providers” below).","page_number":214,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"1a47effd-d6cd-42d2-81e7-5281eb64867c","block_type":"box","text":"Voting guidelines and vote execution","page_number":214,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"2142013c-553b-403f-8e9f-2b462d6d8a54","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":214,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"1ad9fe80-d30c-4811-8cf6-27b66ccd2203","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":214,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"430cbd9f-1e20-41bf-a781-320cd29cdf87","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":214,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"606f2c63-846a-4414-a8cc-51d290715a31","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":214,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"3fe3b996-6bec-49c8-a014-e62bf196485c","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":214,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"7066172d-bc38-4a63-bbb6-56881a50c551","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":214,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"7c5c49af-6edd-4b0c-8b63-da0553653059","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":214,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"b6393bf4-0765-478f-bf6f-9ac715072039","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":214,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"0c09e9db-8aba-4c85-bfd1-4d1ae9804320","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":214,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"79fd18c2-45f8-4f3b-a0ae-f6b58b3704e7","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":214,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"a0df6746-dc9f-44cf-96f0-a8751e4189fb","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":214,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"8ed898ea-d30d-4710-87fa-c1246bbdff14","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":214,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"f7582903-13d6-4f78-ab54-3ffe88f434eb","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":214,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"889a39ec-84a6-4289-ad99-1d6b67c848f8","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":214,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"99784753-12ae-496a-a99a-7256248d5e3f","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":214,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"a91739cb-f4e5-4d85-a8a4-d6df9dc75b6b","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":214,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"013fb40f-031c-428e-8126-1d63f94a4b23","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":214,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"2d46542f-6984-4b69-88c6-5a61e6235af8","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":214,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"6d7eb65d-b4af-4224-8acd-b16a483bb8a4","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":214,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"b5e53437-09c5-4365-a077-0f77fd271d3d","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":214,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"4eca6185-e2f4-48de-90e3-d20177190101","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":214,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"4d1bec18-ddcb-4dd5-a4b4-9589ce503aed","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":214,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"ea15c30c-6d32-4a5f-b5c8-cf10b6df505d","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":214,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"64ffa7c9-c80d-4065-a103-653f99c2f009","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":214,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"0b2f7016-b513-4c64-872e-9742e053f7e3","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":214,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"85f19805-8a22-4ad0-8d6c-a9d7c33e7f09","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":214,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"1a91ec11-eca3-48aa-86c2-fa7bfcd66360","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":214,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"e2b8ca52-55e1-49db-ac64-3884cc74785a","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":214,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"4efa1e6d-d9d5-438b-a651-63b8fe5c2eb4","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":214,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"af423344-3fd9-42d5-a118-e89728c84f6d","block_type":"box","text":"Voting Choice","page_number":214,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"84787580-cf3d-40fe-b0f8-0e0e4d6fd2b6","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":214,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"3fc54a0a-9965-4d9d-8f7c-6f796ee3f438","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":214,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"37ec8354-6050-4637-98bd-ed161bff9125","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e79be87f-d327-49cd-b08f-7252813f7141","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":214,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"bc2d1885-26f0-494f-ac33-7f7992e8ff5a","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f11fbfb2-a96d-4b25-b19e-a2570cf6db1e","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":215,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"55667e49-485f-4d08-af41-fd5a96eafad0","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":215,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"98b4ec78-4033-4253-b214-09e5134db925","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":215,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"a74fa7f9-5b48-4312-8f87-e91506945d78","block_type":"box","text":"strategies.","page_number":215,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"bf81d399-d664-457b-be54-eef2a1f94470","block_type":"box","text":"12","page_number":215,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"ce7cab45-8a59-4cb8-8c80-8a7866f2bf9f","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":215,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"49692196-05a6-4aa7-839a-da076429f444","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":215,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"f3ddf2f5-fdb8-4163-8bf2-351f1a704fc2","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":215,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"66569c32-8bb2-495d-a2ec-d74aa0407ab5","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":215,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"78000e09-b89a-4bc3-80ea-8b9d2de3d313","block_type":"box","text":"13","page_number":215,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"752f4e3a-4a3b-417f-bbb4-a76dfd49aa32","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":215,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"8ec2c7a7-7a0e-43e7-b8fc-2ed7175a151f","block_type":"box","text":"Third-party vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":215,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"78207ccc-2000-4a78-a480-0cb216fbdb6d","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":215,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"6943a247-543e-4dc3-add8-dcbe8a5e5f76","block_type":"box","text":"leverages its online platform to supply research and support voting, record keeping, and reporting processes. We","page_number":215,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"5580bcbf-8e35-4244-995b-ecb7a1ed2184","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is important to note that, although","page_number":215,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"5e8a5ce8-bd02-43cd-8cf6-d02d7101d716","block_type":"box","text":"proxy research firms provide important data and analysis, BAIS does not rely solely on their information or follow their","page_number":215,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"6524d484-dded-411c-a438-3c5ba08f79bc","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":215,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"0b27a1c7-8efa-4739-a89c-ef22630a0a7a","block_type":"box","text":"our Guidelines are important inputs into our voting decisions on behalf of clients.","page_number":215,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"1a93ba2a-2523-4a64-a162-201ef099baca","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":215,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"15dc2d00-4dff-4091-b1eb-1733ace5511d","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":215,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"fabc5853-1d95-4114-bdfb-705ece93898c","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":215,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"d48e33f5-3f01-4b24-9bc9-e4e5d5b0a7d2","block_type":"box","text":"necessary to the relevant portfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":215,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"476b1038-de71-430e-a0c5-50de8f7cf883","block_type":"box","text":"vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively","page_number":215,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"764882a3-106f-4b24-b631-7d6e33d156e5","block_type":"box","text":"monitor securities filings, research reports, company announcements, and direct communications from companies to","page_number":215,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"661a7f18-50d8-463f-9202-feb9231ce032","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":215,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"f4505119-5a8b-45c9-9008-6dc84095045b","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are meeting our","page_number":215,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"23c92ce2-b205-4c5a-95a2-e912baf15547","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":215,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"f752ac90-8b4b-4202-9b8c-8f7e3829820f","block_type":"box","text":"interest. Our oversight of service providers includes regular meetings with client service teams, systematic","page_number":215,"box":{"x":70,"y":439,"width":760,"height":11}},{"id":"a99461c2-729f-4c18-9bd4-5072d883aada","block_type":"box","text":"monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock’s firmwide","page_number":215,"box":{"x":69,"y":454,"width":824,"height":11}},{"id":"4ddca462-8d52-4718-b82a-cb3638618e12","block_type":"box","text":"policies.","page_number":215,"box":{"x":70,"y":469,"width":56,"height":11}},{"id":"fb70dba7-9c1a-4ce4-98c1-f705033d8a40","block_type":"box","text":"Conflicts management policies and procedures","page_number":215,"box":{"x":69,"y":491,"width":342,"height":11}},{"id":"aea8eaed-a88f-4601-bb64-d09f8c45d015","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy voting activity.","page_number":215,"box":{"x":102,"y":510,"width":801,"height":11}},{"id":"15f8b438-9a87-446d-9fc3-33eeb0c7e498","block_type":"box","text":"Such influence might stem from any relationship between the investee company (or any shareholder proponent or","page_number":215,"box":{"x":69,"y":525,"width":809,"height":11}},{"id":"da90c18e-1bae-4d5d-8c0d-9f96c40583c6","block_type":"box","text":"dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or BlackRock employees.","page_number":215,"box":{"x":69,"y":539,"width":831,"height":12}},{"id":"5e1b978c-fc5a-4830-a583-de33bf22e811","block_type":"box","text":"The following are examples of sources of perceived or potential conflicts of 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Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":218,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"ea15a893-e5ba-4268-8583-203fb2f8a7e7","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":218,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"25d27cfd-b50b-419d-83c1-0f4aed3e7134","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":218,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"69f605be-0c5a-4720-8420-5f61d4c037e6","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":218,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"d8a9ee2c-e098-4459-a408-15bcd1e174a4","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":218,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"653771f7-7397-46a5-a81e-8f63b2a1102f","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":218,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"b9284540-a935-47cb-808a-7da56188592d","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":218,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"0bb00749-98bb-4a0d-b474-ef4b1726128b","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":218,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"11ec1cd7-72cb-433c-b634-7c677ed7e971","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":218,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"059c1fab-d099-4141-b92b-854b33418a6a","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":218,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"2a12ca8e-2e13-4c95-9b74-1b499849e06e","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":218,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"ab577b4b-7ba8-4ee7-9314-ecda056828bd","block_type":"box","text":"Appendix A.","page_number":218,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"94106c55-3752-4c43-bfd5-b08a4919553a","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":218,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"c81332e4-9900-4ab7-8da9-36295da005ac","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":218,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"ac5c1cf8-3050-40f5-9644-bbd526043b66","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":218,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"cbdc4ae8-bb39-4edb-85a5-0649bb5e911d","block_type":"box","text":"Conflicts Management","page_number":218,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"491c5bc0-d1d2-446c-aad8-8dd33e123234","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":218,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"fc982fa4-08eb-4e24-95ab-33cb32fd8088","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":218,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"49e06c2c-b621-4b9a-9234-ed9c2c3719d9","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":218,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"c35abaff-55a3-4091-a15d-feec85679ce9","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":218,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"083b8ec2-0d35-4502-a071-fbbc4bef7b91","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":218,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"b1945cc2-0d6b-4c08-9f49-9601d55ca95d","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":218,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"4f1c964d-c47f-4f00-b3e4-2897fa234a1d","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":218,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"1c1c8ff2-3cd6-45cf-a4ea-28ea58393793","block_type":"box","text":"In certain instances, BIS will engage an independent third-party voting service provider to make proxy voting","page_number":218,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"54d79057-f339-4436-bc00-e01828fa34a6","block_type":"box","text":"recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":218,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"efa4accb-ad98-446c-a9bf-4484c565e615","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":218,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"f09b613b-32e3-46f8-ba76-5aac86829c30","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":218,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"18ce66ea-74d2-47b2-9497-494bea0a1560","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":218,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"952e2252-2b98-4dfc-856c-869716b29949","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":218,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"f74c6ece-5c08-4949-92d3-eb268cfb2b9c","block_type":"box","text":"connection with proxy voting.","page_number":218,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"f5311202-28d2-46e7-a397-37afe4dddb65","block_type":"box","text":"Reports to the Board","page_number":218,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"af91c60a-952f-45bf-8ebb-b4719c4c4e62","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":218,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"e0a19282-bb2f-4d2e-a1d2-1b8af60d1906","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":218,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"6dc65385-cd19-4ad1-b075-1a51a51a6d68","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":218,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"ee04a266-6214-4f3a-9cdc-b0f094ca7f44","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":218,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"1cfab781-bde7-4f49-bee5-d5449d27869d","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":218,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"776c5db3-8d7c-4c62-a3f8-5182060c9650","block_type":"box","text":"been 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BlackRock offers a","page_number":222,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"5f4f28d7-76e1-4b75-af0d-4febd8c45c95","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":222,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"92bb63df-5484-4e33-a6d9-02bda3e2d11c","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":222,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"cf42e6af-07cc-4b5c-be5e-a0c5e265aadf","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship efforts, reflecting the","page_number":222,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"9c8155bf-d357-47e0-94bf-056e93e9bb82","block_type":"box","text":"investment horizons of the majority of our clients. 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Through stewardship, we assess how companies are creating long-term financial","page_number":222,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"d3efcbc2-dfab-4ecf-a469-48bc841d67ce","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":222,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"6c458978-1d82-47c1-a8ba-1d24091a00f5","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":222,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"0ccb54d8-bd08-4664-b4e2-aa6b1bd5d130","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":222,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"3b15f225-c39d-4ec0-8e32-0e12fabdfa9d","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":222,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"c8cde0d0-4785-4a30-a7d1-310028657283","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":222,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"cc314b58-f9ce-44dc-8a9d-b410520e7315","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":222,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"714ec38f-c435-446e-8ded-7a18df708587","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":222,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"8c55d862-31dc-4dd6-bb40-a354db445025","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":222,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"4b473b55-efa1-4e65-94c9-ffc5cf770520","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":222,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"3ba70500-58bc-4e76-85a8-123c6315023c","block_type":"box","text":"1","page_number":222,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"1357ae87-fcfb-41ad-ac11-805c301c8c33","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":222,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"5cceaec8-321e-46be-999d-a103a45f4f93","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":222,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"654a2fd8-1da6-4bca-81cb-b2344c46055b","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":222,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"abeba2c9-3710-41a0-80ad-cd1650027e11","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":222,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"b2b46602-8d34-4af7-acbd-ec7e5da91cd2","block_type":"box","text":"2","page_number":222,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"38891293-e8a9-41b9-9412-b20c77cdc9e8","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":222,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"6b401550-8e90-4dff-9ac5-c23d32bdf767","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":222,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"f16c51b7-ca77-423c-aabd-70541eea9bfd","block_type":"box","text":"material business risk or opportunity.","page_number":222,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"6cc6e69c-c11b-44f9-aeb7-f412b8755442","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2b3d9622-8163-4ff2-8481-32447036492c","block_type":"box","text":"Global Principles | 3","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"a77ceac1-4c93-4283-931c-fec4f0a3f079","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aceadb31-66d0-4441-a258-bb12e4c2a03b","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":223,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"d41410cf-5195-467e-95ba-0c2f06064cd8","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":223,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"4f7c37c5-16b6-4715-9733-5d7be07d2b6f","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":223,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"4d3cbfc4-2ff8-4bbe-ac36-5110980f9f0b","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":223,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"bd815c37-7ce4-4ce4-b218-ff5be9337836","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":223,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"859e9cc4-0744-466f-9a7b-e60b9f1383c3","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-party research,","page_number":223,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"d8fb1523-680d-4592-8083-374cefb07f04","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":223,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"bb08c3f6-4e6c-4f6d-8f47-14fe444b3bc5","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at companies","page_number":223,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"85cfb92c-0de5-4e18-8e85-0570dd074ec9","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":223,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"24b39cac-dd38-4039-9065-e6bce2d74401","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":223,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"c24856cb-f874-462f-a402-03076d6866d9","block_type":"box","text":"support the election of directors or other management proposals, or we might not support management’s voting","page_number":223,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"3844eaa3-65a8-416f-b8e8-89e1c117e446","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":223,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"d834ba65-a86b-49bb-a140-54e17c86dcfc","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":223,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"313675b4-165d-47f2-a9c2-eb681c95c1c3","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights attached","page_number":223,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"292acbf2-0635-4268-a319-e600f474f6e2","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":223,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"2982af19-7efd-4615-b72c-5eab515f1cc8","block_type":"box","text":"3","page_number":223,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"1e942203-1ab1-43bc-b80a-7bf06bdd2d74","block_type":"box","text":"For example, in","page_number":223,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"c5b26f50-010f-4c9e-afa4-16e065038104","block_type":"box","text":"most markets, shareholders have the right to:","page_number":223,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"5bba3ee3-d6e2-4d0f-b472-5f1158ead041","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"54456b31-ffc0-491d-a8ef-115099aaf454","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":223,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"08a77009-16d1-4182-9ff4-c0d978f9211d","block_type":"box","text":"charter or bylaws.","page_number":223,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"99e88709-11f1-44bc-81ce-3fa96a490364","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"1ff24888-a1ad-4e77-a767-5f791634f2e3","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":223,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"b3d989d6-1cd6-4c3c-b5f2-8a1f90286bbb","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":223,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"5a54ff16-7e0a-4e6d-b560-fa879f79b564","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"a4b40df4-2d91-4af2-a061-2b27b2509053","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":223,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"f112ba1e-a2b8-4cf1-b2f7-5447bf8e3132","block_type":"box","text":"are material — to make informed decisions.","page_number":223,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"151dc4fa-1d40-4ed6-8f97-a34211947d1b","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":223,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"36d7b516-0950-4d76-9023-4abd705778ae","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that contribute to a","page_number":223,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"313aa49f-fa2d-4c47-b63c-80ff8200f86d","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":223,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"3f85f1ed-382d-4794-883b-68f3ad8ec9bc","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":223,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"73973b03-ebb0-4f69-8c6e-5ee5499facf1","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"b9d9403d-e692-4395-8b43-41312bd133a8","block_type":"box","text":"Boards and directors","page_number":223,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"95b1ce5f-eb48-4cc7-a7b5-3a89a527e918","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"b2563749-b58e-4173-a40f-8ad38febdeb6","block_type":"box","text":"Auditors and audit-related issues","page_number":223,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"893752ba-b5af-4404-84aa-f36a4263386d","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"290b9d69-3f4a-49f2-ac71-07adfdc8cc29","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":223,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"a514be0e-0beb-4e79-9107-ac84ae77d062","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"a15922e0-e7d8-4ebb-ad02-0f795152f161","block_type":"box","text":"Executive compensation","page_number":223,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"f3215680-06e5-43b0-9311-f6c0c627913a","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"b7e2ccd0-dc90-4249-bddf-bb31cc80ea45","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":223,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"15ea4995-3013-4b5b-a6b7-56840f3d4095","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"b83d7fb9-6597-4601-be7c-8827527c8fbf","block_type":"box","text":"Shareholder proposals","page_number":223,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"3439c88c-3bcd-4e3c-aefc-bd9b07145e2e","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":223,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"3de25c92-012e-4551-ba30-74b36cf3df79","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":223,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"c415cf94-78ef-4d55-b4b6-983b062ca39d","block_type":"box","text":"which companies operate.","page_number":223,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"a5e7d9d3-f9f5-4754-ba36-131f8e74ad9a","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":223,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"91f93b12-f7f3-4ca0-aad3-16a3b650893b","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":223,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"f21d8ed4-ec5e-490f-a359-fc03816e39d4","block_type":"box","text":"supports durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":223,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"a31157d3-93a6-4c94-a7ec-f8e038ab43af","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":223,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"6bbac3d1-ab55-4eaa-84b4-fe1a71b0673c","block_type":"box","text":"4","page_number":223,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"0696654f-46a0-443b-8a45-b6f29217bc84","block_type":"box","text":"3","page_number":223,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"75531bc2-8004-4374-be19-eae81d8d46be","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":223,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"9364dcd8-bbfc-4433-b521-c3ab0e62c40c","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":223,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"3c14c98e-19a6-42e3-aa90-ff7c9545db36","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":223,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"c8ad35a2-46e2-45c1-b2e5-06bacbde625c","block_type":"box","text":"4","page_number":223,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"cfa6f423-9f94-4cf8-b8b4-17b7fd772cf6","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":223,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"74d51587-9bec-44be-96b7-d346ed4c0084","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":223,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"0ebf388c-8ff5-4dd6-9451-30159d3cd902","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":223,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"5e980c99-e74b-494d-8007-abd630203166","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":223,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"7abe155b-463c-4af2-8789-6dbaf22b4c82","block_type":"box","text":"guidelines.","page_number":223,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"3e62f920-0fa9-4bc1-b1ba-fd2742b4175a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d0fee8ba-7e43-4c63-97fe-3e47870f3ccf","block_type":"box","text":"Global Principles | 4","page_number":223,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"0bae6a33-cd30-4529-9178-5b8ac6567399","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c31ac347-cebc-48b6-adaf-32724abba3c7","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":224,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"59e1857f-fc43-4305-ad2c-c575b8de9a4a","block_type":"box","text":"Oversight role of the board","page_number":224,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"3a5e3ecd-ca71-42f6-acd5-61a909fd1d97","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":224,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"1487ac28-b272-4a10-97a1-97c3f381dc88","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":224,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"0de997e0-119e-430b-9c58-c2910ac7d5e9","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":224,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"37023dd7-75f8-400d-a0ec-450d237809ac","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":224,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"c9ac2daf-c002-4eba-a5d2-4c167921a29c","block_type":"box","text":"long-term financial performance.","page_number":224,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"45749e6e-90d6-48c9-a49f-1defb886a31c","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":224,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"20a3670a-5db5-4ce0-adf3-6cfd83324300","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":224,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"92889eae-db5b-47ce-b246-143d670356cd","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":224,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"56eac699-3da0-4f72-9d63-0e2af2ae3acd","block_type":"box","text":"the business environment in which a company is operating.","page_number":224,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"3d25385a-6c86-4165-a74a-e5ba837d3a5e","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":224,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"3b018d27-d830-4e8a-8807-cc3e0c0a2453","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":224,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"6fa228c6-df85-436f-bd9c-f9807a9ad881","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":224,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"cdb026a0-185e-4608-bbc2-58dae674ad34","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":224,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"da02b004-b0a8-4807-8af7-0c8ce73889bf","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":224,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"af4b1dc7-9197-4549-b9d3-953fe3bba6f1","block_type":"box","text":"mitigating such risks.","page_number":224,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"b7bfc331-208b-4192-b801-f5de8dfdf1aa","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":224,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"0f024922-c434-4410-9837-1ca7062119f2","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":224,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"9808adb0-7db8-4bc6-982d-33ea0d16396f","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":224,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"e2e63be9-631f-4ced-aee0-eec49ea19d81","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":224,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"c286853d-998b-47f8-91fc-ce71d411df36","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":224,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"866d1018-2294-4acd-849e-2b18ccb6a9c6","block_type":"box","text":"strategy.","page_number":224,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"7e897abf-0611-49cf-aeb3-af370ec7d8ef","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":224,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"e9895df9-0796-44d4-88b8-e1be17a9d72a","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":224,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"28bf6254-cf24-4cdc-ad8f-a746fda3b395","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":224,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"9120fc64-8785-40b4-bc42-83c602126d7b","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":224,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"10f1531a-2851-433e-9746-3bc5f1288afe","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":224,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"2e591553-d763-4f0f-b2da-210b95285d96","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":224,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"b495f1b7-af0f-4a2f-8fcc-c8d5aeb4bfd4","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":224,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"fce44161-a8fa-48be-b3c0-9f4e66836bb9","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":224,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"68d9adf8-2953-4902-8baa-55da0a6f4428","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":224,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"6fc40619-7007-4110-8cd7-e6c7b45c87eb","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":224,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"95e2c1eb-08ed-4311-9a39-428480cd0cff","block_type":"box","text":"Regular accountability through director elections","page_number":224,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"5f4efcf9-5505-4f16-99f9-070732011893","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":224,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"f6a1a44a-ce93-46b5-b099-62666932adbd","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":224,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"f06ce2dd-9c5f-4e5e-afe5-305288f5eaa2","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":224,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"1206e37b-9ae5-4be3-9366-4b7b68282fab","block_type":"box","text":"5","page_number":224,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"488110f6-09e0-4a58-8ded-39758a72d60c","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":224,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"d9513a91-c722-4a67-8dde-91bf39467aa2","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":224,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"8b958534-b8d3-4c0e-9081-29f81821c52f","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":224,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"87c2b4d1-a496-4214-ba3f-05baa8513725","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":224,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"09348171-237d-4604-922f-0d075e5b583b","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":224,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"ceef5133-0a9b-4e0a-85f1-d23dfb252965","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":224,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"21be2a54-a018-48fc-94af-232f22e40753","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":224,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"d6613be0-427a-493a-b13a-b6069b95c035","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":224,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"cebacaa9-8829-400b-bcd8-99c4a362c051","block_type":"box","text":"5","page_number":224,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"db521750-a0de-40bc-b29a-26f77d3c823c","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":224,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"a1abeded-3a72-4094-8d73-06538381f78f","block_type":"box","text":"market regulation or voluntary best practice.","page_number":224,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"6759bb34-72da-45dd-b90d-548cd1551f73","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8c125846-d84b-41ea-b6eb-e0c962bf7390","block_type":"box","text":"Global Principles | 5","page_number":224,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"0857ece0-dc6b-4d2a-905e-0daa86ee216a","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df07fdb1-fcd4-4d54-bfc4-fef0232d8030","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":225,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"7e5a877f-fd41-4d67-9371-9073c6f185ef","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":225,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"3eed227f-f502-4f09-b363-f0c46a32076f","block_type":"box","text":"recently.","page_number":225,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"9706f618-b200-461d-9255-e15604ccefcb","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":225,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"29bbdd2c-089d-41d4-8a74-c33a73d806ad","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":225,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"01bfddcd-199a-4a1c-a4a6-4e2aeed4796f","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":225,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"cba3a3cf-1895-4c0c-a95d-ee807797b218","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":225,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"4000e30f-43ba-4f36-baf5-d6c9a23025b1","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":225,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"bd312260-17ed-4805-8f77-df17beaffe11","block_type":"box","text":"Director independence","page_number":225,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"76eb6f87-b8e3-46af-88bf-0ea977b54868","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":225,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"e1228a9f-254d-46ec-8297-f0ea8c3193af","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":225,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"185317a2-4c16-4eab-be8e-7b1071e16187","block_type":"box","text":"6","page_number":225,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"70db5a40-2fde-4b9d-ba8e-a0231a417f0f","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":225,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"a2099f17-89cf-4730-8ef2-d757833e591d","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":225,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"12197ec4-0360-4fb6-bcac-484f448d0dc2","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":225,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"22521ee1-62aa-4ecb-89ac-545029e00561","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":225,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"d854c0b1-986d-43c2-a912-1ab7e158bfb9","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":225,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"613bb889-20f0-4949-a56e-27a75de3568c","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"3e9dd8c8-785a-438e-ad3c-0879ad0e9622","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":225,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"a4dd9d86-3521-4ec7-b2c9-7b61d40962b8","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"f2a725b6-8d2d-4e92-b800-9b34fc6bf2cf","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":225,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"dc5f168d-ad26-4028-bf72-07d59d3263d1","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"00fc25a5-82b6-4981-8a27-ce74fbc107b7","block_type":"box","text":"Interlocking directorates","page_number":225,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"bd52c42b-786d-4426-b83e-0b6195c3557d","block_type":"box","text":"•","page_number":225,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"2219f6c0-fec7-40b7-b102-03af26377520","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":225,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"975bc5a4-e650-46bb-9bf3-d6105756ca81","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":225,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"8adefb9c-c8b1-4031-8dc0-3e3ed0730883","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":225,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"dbeeb249-ce29-4dd5-8579-fdfc7c881136","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":225,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"b86cefd5-ccad-4bb1-9e47-7f9182b5f51b","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":225,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"53efa5ed-b7fd-4b51-893c-acb759cc6169","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":225,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"78a83e58-7d25-4281-a25d-4ddf185f988e","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":225,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"4a2698bb-6bb6-45aa-8e67-d3478b83dde1","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":225,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"1687be4d-bfec-4a2a-92a8-830979bc94c2","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":225,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"87b03779-ed68-45cc-98ce-acc1f3a01253","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":225,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"ed31831f-71ac-4f7e-be4e-abaf0faac0ac","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":225,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"2aed4678-3596-4956-bce7-f147e2f8ee79","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":225,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"50704bd0-7184-468d-b7a1-9b6eee5e5208","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":225,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"205eada6-8292-41f9-9623-0ce6d62c3a44","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":225,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"9b68523d-c575-46ba-9375-e1806a10897f","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":225,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"0424f5b6-441e-409b-abdf-dda5e5a0e179","block_type":"box","text":"Sufficient capacity","page_number":225,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"621112da-0f2c-428a-9fdf-98c5dd5e52eb","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":225,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"b0bc513e-1b24-478f-b632-e63af9324ee0","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":225,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"c41ea240-4bfa-40da-acb5-0bb5395a7ec0","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":225,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"c6f3314e-e601-46da-ab61-083789a7b66e","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":225,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"4a5bd835-60e2-4912-9340-820b11dbcbd2","block_type":"box","text":"Board composition","page_number":225,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"4f0ee2c6-bec1-4fd3-9779-35550509c768","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":225,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"748968d7-f4d2-4807-aaec-04fd1db43edb","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":225,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"5e4bbe2b-2105-4877-80ae-d2a6ea54f183","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":225,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"6e353da2-b8ed-4712-807a-3420e5160870","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":225,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"159a056c-41f5-4a32-b33b-30be6a8a47ba","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":225,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"9a7d316f-11c8-478c-aa00-8b3e8d917418","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":225,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"a462e533-5465-491e-bb66-de0fed392e78","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":225,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"455396b9-ea45-4e50-bb6b-5d3eb665859e","block_type":"box","text":"6","page_number":225,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"212c50de-fe35-45e8-93d6-107ea670c216","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":225,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"f5dca61f-5fbd-48e8-a975-9f0928f3fe0f","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":225,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"a35d3a3c-bb8b-4237-9b3d-ac8cdaf4cb6b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a7037682-0445-4062-9f18-b13e86736173","block_type":"box","text":"Global Principles | 6","page_number":225,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"a2576c80-91d1-4348-bf49-d04cfc0c148d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31c9fe94-d0f1-4235-a64b-a3d0ea1b23a4","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":226,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"04a43c62-e9d1-4c08-a520-0c7c410338a3","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":226,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"eb643d19-cfd8-4755-b871-e551cfa5de52","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":226,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"2a912e0c-b8aa-410a-bfad-0d202d7ae1a2","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":226,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"706de1f8-a660-40a1-bf81-0cb9336712ef","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":226,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"d157a1e2-4fd8-480d-a82e-59c3502ac709","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":226,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"7615379b-00f1-4a0b-8a5a-b9103b355b7e","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":226,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"abe9b364-8ce3-4e65-b646-ed1b250b6316","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":226,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"5b692491-f3f9-445b-963a-1aed5590cb28","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":226,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"735791e9-f1ca-4cbb-91e6-7e53cf0e77f9","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":226,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"a89954c5-1af5-4da7-908f-1dfa5160d103","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":226,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"faba6f65-cda4-44d6-9026-67c24dce9187","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":226,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"3926d521-909b-4113-86d1-2a3041158a5e","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":226,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"f777b833-a794-49b6-8547-5c75560737cc","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":226,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"96c88984-6ddf-4f44-8f64-62d83994ff3d","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":226,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"2b875f11-0f7d-41d8-a014-51e7de0f0774","block_type":"box","text":"systems.","page_number":226,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"42ba24cd-ab75-4184-b403-184ea23b8199","block_type":"box","text":"7","page_number":226,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"589f46ea-2b35-463b-8c6b-acef478fda6d","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":226,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"665a9c06-31b3-45c3-854a-d97ea23c5cae","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":226,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"8ec8c22a-8914-4d99-8bf5-206dcf964fea","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":226,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"995ee21b-a68a-41e1-b376-7f291ac90a97","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":226,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"eb5d8fda-0faf-4e1f-9dc1-e593944f556f","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":226,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"b66e77b1-0bf8-4179-bdeb-b6e2ed7222fc","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":226,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"d32538a7-297a-4260-8fcf-56a288b26286","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":226,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"de91a5e6-dd99-466b-aaf0-9ac979247205","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":226,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"eb89a395-8d10-44bc-a842-4285397396b4","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":226,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"a966b047-919c-41e8-bc2d-0624e801209f","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":226,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"78904b4e-7ce1-4dba-af8a-20a0fa1d11e2","block_type":"box","text":"or internal audit function.","page_number":226,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"415908ff-c392-4e17-a941-7978f78e7003","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":226,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"4d8c2c73-d5b7-4689-a3c7-80f65ff45fbe","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":226,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"47d81b69-dfb8-4d4f-8b28-f471903d3f9c","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":226,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"5da157d4-d047-4abe-b164-4908f4ce0af6","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":226,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"3629bd4c-93fd-4589-9c1e-ee5800ae4062","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":226,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"63b3bf22-1c7c-4d5e-b4c7-eeaeea998b0f","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":226,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"146fb8de-c150-4b6b-a485-993cd6f88708","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":226,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"49809bda-d5e7-4414-962b-89ebb048d87a","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":226,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"d08d4a3d-fe66-4b0d-9274-10c55c527fcb","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":226,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"bcb673c5-86a0-47b4-8a7f-a68d99c75b14","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":226,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"0e8c84bc-4c2d-416d-aa58-2992d82138a2","block_type":"box","text":"risk.","page_number":226,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"63e099c1-b340-4828-9e1e-4bb5cb66be6a","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":226,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"e66adc45-e24f-4527-bf29-2b6c0da4ebf1","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":226,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"a358ddf8-ba5c-49d0-812e-cff6ad6db011","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":226,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"c911012e-74b5-4949-b1b7-012505090716","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":226,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"ce088707-4c3a-49c2-9c54-317bd1d0d67a","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":226,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"7054d79e-cb96-4634-a4e7-123f2190211a","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":226,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"4aebec45-2ac5-4403-9c1a-a79b9431999b","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":226,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"d7ea9ac9-c74d-487b-bdbb-91e7b97f2f89","block_type":"box","text":"7","page_number":226,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"90c9ec03-c3ff-427e-9d89-197d183bbf9c","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":226,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"ea12a86e-f2a1-4361-8074-7a374af68913","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":226,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"270495db-8e9c-4c39-bc62-4297413bde61","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":226,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"659f4207-6991-4443-b13f-9efc58b5d8a5","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":226,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"71d51422-00c0-493b-96fe-7da2eaa2f227","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":226,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"f7ae0f49-3a4e-41b6-880c-526234fa5e4f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"db23889e-3605-44eb-8762-b5bf94d72c43","block_type":"box","text":"Global Principles | 7","page_number":226,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"3a06ea81-d4a4-477a-be0b-83547e4c62df","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1c97a3f4-3c91-4d02-89d5-26d698d9c297","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":227,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"c0509a09-51d4-4bb4-8ab7-db4c7d1e410d","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":227,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"a179d9ba-a0db-4d53-b2b3-f49413685135","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":227,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"df5309bd-4170-4ca6-abdd-51020a65ec7d","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":227,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"2caed769-272f-4dd6-bb5d-c5b8ecd045e7","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":227,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"0987ab91-ab78-4834-abbb-62b2fdfdf9d5","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":227,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"c05faceb-5370-4f5d-bcc3-9f24bfe267bf","block_type":"box","text":"minimizing costs to shareholders.","page_number":227,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"e0986265-6efc-4c6a-ac50-081bc57c8626","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":227,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"349e189b-4131-4ac4-82d8-42e5c4118f12","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":227,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"a5bea1c9-f481-4b90-8d8a-bce10b5d144e","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":227,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"801eb6ca-3c38-4910-9652-481c640ddce1","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":227,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"206405d1-c0ae-464f-9f72-c649b5d8c6b7","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":227,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"cebf3cb8-f6b4-4ee4-984c-bb55a5b6d299","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":227,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"3dedf7b1-91db-497c-8d7c-cf0a75083495","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":227,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"5c3ffecd-4eaa-4983-99cd-767a5e7693a8","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":227,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"d395165f-f42c-4897-b5b4-64bf8304024b","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":227,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"eaaa357e-e666-4a2b-a7bd-6ce4a9218f0f","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":227,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"e28e3c41-5e9b-4655-abc2-5ea5f2c9e894","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":227,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"e653b096-780a-4a68-b089-aff38cda21c8","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":227,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"e4737c91-b98a-48d1-ba84-512ef5d17ae6","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":227,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"f92c3090-7145-4821-88dd-e766b8385bdf","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":227,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"2ec759bd-9cf2-4ead-89ed-8c75a3199b5f","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":227,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"8956073c-c1ff-4f6d-98a6-c533f3dab9cf","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":227,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"22b2f4cd-2aec-4145-8f98-c9e39d46bdd5","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":227,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"f39c3a84-da02-4cc0-8f3c-ca440fa9dcd7","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":227,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"017dfc85-d41d-4eb0-b3f7-36dedb9ab607","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":227,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"915fe1c1-60ad-493e-aff3-473f8f8f705e","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":227,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"abb08902-8534-4587-871c-7791eb1b5061","block_type":"box","text":"ownership.","page_number":227,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"ebfa83f8-2292-4b5f-8886-397f8cc33044","block_type":"box","text":"8","page_number":227,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"5b0d7ebe-59e4-4088-a7dd-27053c0cbb80","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":227,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"39f4d3bd-5b65-4f78-ab2e-a9983a3dd2b4","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":227,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"da442182-7b24-40db-9e2d-a61c0f7ad457","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":227,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"0d1a8de8-41e9-4f7d-a09d-47d8ef76d11c","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":227,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"ba201af7-26da-423b-8601-e8219ac43afe","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":227,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"b16edd79-8d3b-4425-99bf-35c485549739","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":227,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"72307246-f05e-444c-a7d0-1d71c93c5d97","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":227,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"0b68078e-69e0-4309-8224-e39053f17d23","block_type":"box","text":"results over a period of years.","page_number":227,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"059a3606-bc00-47ac-9c40-6ae6fc75e358","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":227,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"df68ad28-49b1-49f2-956d-58f4ca68426e","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":227,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"76e67036-817c-4c57-97de-e0d40222e16f","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":227,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"79521fde-c9c0-4688-bc03-fe1101e6f23a","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":227,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"365176b3-0c85-4d9b-87a5-b0683209f477","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":227,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"9b237390-156c-4af5-ad30-fb8bd5526797","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":227,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"f670e0dc-e25e-4a38-afb2-22e731010672","block_type":"box","text":"executive compensation strategies.","page_number":227,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"1448a478-cb10-4f31-b2dc-7182426cf72d","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":227,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"60e55a50-eaad-4af4-935d-f46bc7a09510","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":227,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"9e957958-a3d6-43b8-9579-5009e2e2f4f5","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":227,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"b50a69da-1ad5-464b-ba8f-706790cf02e6","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":227,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"03d38ad6-ebfe-47e4-bde6-9359b33cfd01","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":227,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"900452d4-66c8-4952-ae8b-10ac56fbeaf5","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":227,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"e99efb68-673a-42ce-b7bf-64bd355548ce","block_type":"box","text":"8","page_number":227,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"4826381b-09f8-41a0-b60c-fef26497017f","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":227,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"825f817f-806b-4bc7-8662-84d02dabf22a","block_type":"box","text":"different markets.","page_number":227,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"121de019-4011-4d72-9e35-7372b51b0191","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"14860f6d-ed4e-4a77-8cb7-086c3048a5d1","block_type":"box","text":"Global Principles | 8","page_number":227,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"802f3006-01ef-4580-bcae-9f000f9101de","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0286c1d0-c265-461f-b095-28fb34ce6c58","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":228,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"c2eea29f-6c97-4f6e-8fb8-217349f38c60","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":228,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"95e2b244-4e02-499f-9b54-0b23dd1b42b9","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":228,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"72866e02-22c4-41eb-a6dd-5f140e54df69","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":228,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"3903edff-67a9-4eaa-a329-f4d2aaaf2015","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":228,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"6c5ec82d-57d4-444b-b033-43e71d88dd41","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":228,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"4dabd881-8b09-4b92-b5bf-f6208b44e1ad","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":228,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"eabad118-3ced-47db-982c-b94a28bd4461","block_type":"box","text":"whom they are charged with overseeing.","page_number":228,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"f88c44c7-47ce-4e71-a66d-baa1ae2c23da","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":228,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"836f8eb6-5045-43e5-80b0-9d15ae5b699a","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":228,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"b09bd7bd-0282-4a4b-9784-1b591b706980","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":228,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"d4acb5f8-417b-4e2d-849c-c57bbdc3328c","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":228,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"4e3c65d4-7ab2-4418-b428-b8c319a806fa","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":228,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"c0196dd5-7b73-465e-9ee7-750904a0f9f7","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":228,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"ef2a1ad6-a2b6-4b74-89a3-8163b96a7e17","block_type":"box","text":"structures.","page_number":228,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"b8ddfe0a-426a-4121-808b-4a652c45d3d3","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":228,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"30579067-44ac-4417-8ae1-bdbc2676e8f4","block_type":"box","text":"Corporate form","page_number":228,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"3520b6b5-13bf-48dc-afc2-d6f5e7124be8","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":228,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"47142648-b4c9-4438-8d2b-3cd055babf50","block_type":"box","text":"the company’s purpose and business model.","page_number":228,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"aead4cff-06bb-4edb-bb19-18f21810c7f4","block_type":"box","text":"9","page_number":228,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"50837b94-68a0-4df1-a1fd-4c25468c37b5","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":228,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"26fba216-f7c2-4ff6-8738-045f91b22c32","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":228,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"6d491388-e0c6-48ed-9889-a957268be178","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":228,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"d6706065-e9d1-4cf9-92af-2c9688d84cf2","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":228,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"d9eebf1e-f9a8-43f3-8902-0c247d7f5458","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":228,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"6278371b-da82-4a1b-b3a2-30cf3413d8b5","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":228,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"85ca118f-4ea0-417c-ac49-d384ff2dcb58","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":228,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"3018919f-5e24-40cd-bb74-7bd25276ecb0","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":228,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"e35b1d3c-fcb3-4960-a525-e5c37a5c8705","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":228,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"f78bbe3d-e1a3-4f16-aeea-db3eca34fd26","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":228,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"747fa828-8960-4c9b-a212-e97b148901da","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":228,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"d96524a7-b60d-4a7f-bb2f-77c0c272acd2","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":228,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"acaff38f-d714-4371-b2fa-34cc22f7d886","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":228,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"c4a0d779-1487-4165-adf4-f9ef195d8f2e","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":228,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"d7fb85ba-6071-4c14-848d-fddf62abaf1d","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":228,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"8564d679-ea33-45a7-92c3-82b9c3e15e8c","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":228,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"231da355-8801-4d15-81d5-9ff76918bce9","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":228,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"7f769199-d9a5-4f6e-ae17-0dd201231ab8","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":228,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"616e9138-f7a5-464b-97f3-35a859d141a6","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":228,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"c88d47c8-6ef7-4ec0-bd1b-270c23e42f3f","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":228,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"31c31998-2812-42d7-90b5-e6d8c607c552","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":228,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"ece45ccc-fa2a-4126-8176-0d4ec6c42c2d","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":228,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"8f5962ea-5a66-4b5e-82ee-7eda585d704b","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":228,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"ff6efe7e-0eca-4af1-b8d2-a45ca77e0038","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":228,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"90b2e4c9-ba3c-4d3e-913e-f017fa4c83cb","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":228,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"c6ecda9a-ed63-43c2-897e-a11afb1e5ed1","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":228,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"831e74f6-4a6a-43da-9ebd-1876e3dd3fbb","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":228,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"90e54d9f-8b04-4d66-b8b1-1e2f3ece6216","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":228,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"7ff84440-f47e-483b-9914-3271ac89b6fb","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":228,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"8311eaa2-62a5-48f9-b46c-2dfc9d1fd4a3","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":228,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"0e19fae5-4a68-44dc-a8c1-2624bcd2813e","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":228,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"5b5d46a7-d915-4776-a270-04bf8f1109c9","block_type":"box","text":"9","page_number":228,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"5f66d79e-75ed-4f23-9c57-8144dfd02221","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":228,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"71922998-df03-4f14-95ef-d8a870690208","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"69c0153e-7d2f-40b5-b99b-a2d1af621bc5","block_type":"box","text":"Global Principles | 9","page_number":228,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"b917729e-fa94-4fa7-aefa-4e67871e3f17","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e86135dc-39db-4444-852c-0a7e8995c888","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":229,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"d45d9fb0-6d48-4678-9685-59f098c1c584","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":229,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"4bb7a7a0-3c60-4c44-b605-d2eeb8cc8c57","block_type":"box","text":"long-term financial interests.","page_number":229,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"b807e3b9-7a05-4471-a60c-e1c842e3ed92","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":229,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"7d2c1c39-1c89-46ee-972e-f79bc3550118","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":229,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"74c83f98-5788-4a13-825e-0da67c5864bf","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":229,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"dd5c4b27-b6b4-4550-ba88-fcb6581d1b78","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":229,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"d3788bde-6caf-4b68-b9a7-6f259874fd2c","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":229,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"8a9d359f-fe40-4a3e-b868-3985c32ad7aa","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":229,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"026e59c9-bf24-49b1-85f9-5d2d1aa09397","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":229,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"4319058d-9935-4ef9-a3f0-281d66330222","block_type":"box","text":"term financial value creation.","page_number":229,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"c8dc40b2-3d4e-42c2-936a-14ae6e38c903","block_type":"box","text":"10","page_number":229,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"5367c06b-b318-4766-a17c-7076f6ee8db1","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":229,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"75f80e97-2908-4f5b-8b94-1362871b42da","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":229,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"5fa2afe5-8454-4eda-8dfb-fe081029b5fc","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":229,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"9f5fd61e-b1a7-4334-84c3-c26c477e1558","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":229,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"55688c03-bafe-4545-bd02-e9aee17748fd","block_type":"box","text":"industry-specific metrics.","page_number":229,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"98d19b13-3baa-4491-94c2-112ecdd8e423","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":229,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"dbe7160a-2583-4c63-9988-fe1dd59307df","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":229,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"2f53491e-4288-491b-996e-84ca9527165f","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":229,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"aad3c4b1-3bcb-46b1-ad20-8ae31c3398e8","block_type":"box","text":"11","page_number":229,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"60799c28-9ef3-4224-987c-b86569a85882","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":229,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"3f7389c5-0983-47a3-9ae4-d3d8ec8d1c34","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":229,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"c088b232-7e2d-476b-9a15-b10894079669","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":229,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"c3d174f7-4fac-444c-9649-a786cb569a53","block_type":"box","text":"specific.","page_number":229,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"0e3ceb80-5599-4071-bbb3-5e773271045e","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":229,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"9329c0eb-93c7-412d-9639-1823a9d56324","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":229,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"e90d8d3c-1807-43f1-9e7b-fb2f5ed829c4","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":229,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"7f2f63a0-ec20-469c-9da9-b2354243f29b","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":229,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"afef4e82-d803-4dd1-b211-cdabd3b09e1e","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":229,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"4012e0ec-44b1-40c8-87da-bb0c4d69a675","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":229,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"2bdce5ae-b775-46fe-a98c-43287f16947e","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":229,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"1ab7828e-160c-440a-871b-12d407efc43b","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":229,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"1910b2be-2713-451d-bdda-e6c272b54129","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":229,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"dd042e0d-6b83-4e46-a124-b3ae9b199c49","block_type":"box","text":"10","page_number":229,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"977a895f-4380-403b-a694-9d330fe6612d","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":229,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"bfd47e10-cd74-4277-8d42-44002f6b64b8","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":229,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"4283b6cd-fe39-42a4-bb2b-f5696759baa4","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":229,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"af9a7ffd-06a5-409e-b569-dda2dad87c46","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":229,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"c93ea0b3-8fe7-49bc-9143-956c71b759ea","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":229,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"789beee9-5cb1-421c-86f4-eeb32863036a","block_type":"box","text":"11","page_number":229,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"6fd3be43-110d-4d45-ac77-938a7fd215bd","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":229,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"b81c13bf-df74-432d-8c93-50bc4c49268d","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":229,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"4e264cf4-20b6-4163-a6b8-b204f8e6cb56","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":229,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"7b36bfeb-52c2-4f73-b6b2-a2303a0606c5","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":229,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"0d3b2887-20be-493d-83af-0daf4c5da0c7","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":229,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"b5fb7627-177a-46e6-b3e7-312344208ed8","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":229,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"3a49510f-99ab-40f7-9de2-abf5b513d2b4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9ee3fca4-ec34-4a62-8ec0-e40355da19ec","block_type":"box","text":"Global Principles | 10","page_number":229,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"e84720c5-10e4-4cfb-b889-a923e5b0327b","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eaed323f-7e30-4f93-a978-05c3d18c91a0","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":230,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"a936bb82-7f79-4c3d-83bf-206b0122df52","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":230,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"7bc9f198-a461-4d3e-a751-0ce1519f9fa7","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":230,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"43c30783-3471-4d7b-a3fb-2a0f902c22c9","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":230,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"f8d07e7c-fb49-4c96-80a4-45986dc14b51","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":230,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"b8ab33e4-c385-4210-941c-d4249f251645","block_type":"box","text":"12, 13","page_number":230,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"c2c0a51c-57a7-4431-904f-9bd9bcaae3f0","block_type":"box","text":"From company disclosures and","page_number":230,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"92c4474c-a37f-4ef4-96ff-d2441eb66151","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":230,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"d2a6d04d-c566-4275-afe3-8dafd1d795be","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":230,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"298d4e05-25de-489b-b57b-6b59bebe1967","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":230,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"51764e89-c12e-4da3-8c02-dd8f5aec286b","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":230,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"822b366f-5deb-46a3-a905-4eb1078fc551","block_type":"box","text":"viewed as best practice in the market.","page_number":230,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"a24f5302-524c-4757-a9c9-5fc5cd0c8ea9","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":230,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"73df5436-74c9-4aef-8133-bb07b09273c9","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":230,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"12ecc666-520b-4c3c-afa0-e835b43b7464","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":230,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"1feb282c-0170-495e-b4db-b90509e720b3","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":230,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"217b8dc2-1023-475c-85d6-631a917d6eae","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":230,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"5f79aea8-32e1-489e-a019-58c79317b120","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":230,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"9bc707e2-86cf-451e-91e1-ebaf71aee365","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":230,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"5ad8c971-7dd8-45c6-abd6-b43be6d1946c","block_type":"box","text":"interests of their investors.","page_number":230,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"75ac3cc5-07bb-48b2-b992-09a033ce43c0","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":230,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"26f02063-1fd5-46d2-ae42-058c75cace3a","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":230,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"fb138f4d-b542-42ba-be8a-ba450f6de760","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":230,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"deef8e1c-d761-4fcf-82d9-bc8a7ee10661","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":230,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"9a4689ab-7a7d-4eed-b620-a8c0378d4ac2","block_type":"box","text":"good-faith basis as methodology develops.","page_number":230,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"83504886-b7de-492c-bd90-e5a45dbee1d8","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":230,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"bbc85be6-0d01-4fe9-84af-36776b804cce","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":230,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"cd7ba218-8347-4d8d-bb25-d34f9f4d67b1","block_type":"box","text":"generate long-term financial returns.","page_number":230,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"629d320e-4c83-4e76-aa5d-2e19e7b37d9c","block_type":"box","text":"14","page_number":230,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"af6c1be9-e21c-4187-a8ba-15c6e4766ce9","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":230,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"538ba951-0599-478b-b407-1672009204f0","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":230,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"9ee2563c-d493-4f7c-b4b9-abbb499cd91b","block_type":"box","text":"15","page_number":230,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"c01686a5-47ac-4de3-8086-cb93c4749177","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":230,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"0736db18-8cf2-4b62-b402-923435e7322b","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":230,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"06761c54-d2d4-43b7-a5ed-ed6f1de4fd3c","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":230,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"132df7a6-44d2-46df-b19f-adee86316d11","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":230,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"9ed766b0-c392-4dcc-95b8-6dd01180d55c","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":230,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"b3d544a0-9bf2-402d-9be2-fb64463e5f40","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":230,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"837033d4-5ac0-41b3-9507-8e1cee8e0666","block_type":"box","text":"12","page_number":230,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"1f9fcd88-277f-4454-b98c-57c183c26d8a","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":230,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"98228d75-181e-45df-9b95-baf430e1c704","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":230,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"774609f8-65cc-4697-b93d-fae69b9806e2","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":230,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"52b237b3-c640-402a-8da4-959e0eb90cc2","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":230,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"bec69f7a-aab7-43b7-b7e4-0069d0962123","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":230,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"0d5e296f-0090-4771-811d-f105dec9122b","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":230,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"32136cff-47d5-4c37-b723-d1f3f71c8cf7","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":230,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"a58165c7-840d-45ab-b1e9-ea10c5ebfe09","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":230,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"3dbaf7ae-8b04-4c96-ab00-d7b2ff29689b","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":230,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"9e98b9cc-00ab-42ac-9a64-272f7d61f999","block_type":"box","text":"13","page_number":230,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"a813aba7-3c4b-4196-ac3b-93f846945794","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":230,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"cc4168e6-40a2-4d7b-8de7-febfbff16a72","block_type":"box","text":"2025.","page_number":230,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"47131c1b-090f-4a3a-a0ff-ab3127c04847","block_type":"box","text":"14","page_number":230,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"38cb742e-cf2d-4131-abfa-57c5c8eec02d","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":230,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"e4e32df6-d7bd-4cf1-b3eb-14491427620f","block_type":"box","text":"2025.","page_number":230,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"099ca96b-566f-409f-916b-3bde407ea204","block_type":"box","text":"15","page_number":230,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"17b3a232-0c9e-4983-9edb-4afac120d4c3","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":230,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"2d1d09aa-513e-4ba4-916c-9c80bb66da1f","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":230,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"a09800b7-13cf-485e-84f4-091fd32c3744","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":230,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"6482c957-a7e7-452c-af24-5df0d1076769","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":230,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"cd92050b-d11f-4014-8048-4a906e44b9ca","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":230,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"24be31eb-70aa-47ce-a410-d6d00e3234eb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fda4116e-9d28-467d-8afc-7d728520a929","block_type":"box","text":"Global Principles | 11","page_number":230,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"7044a505-149f-4165-b3d6-f9a54fe06678","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"908dce83-f848-43f4-ae5d-015705ee69e2","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":231,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"01885481-a755-4e54-b57c-6a731460b41f","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":231,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"275e4f27-9365-4eb4-8eaf-6a9e5db46bc3","block_type":"box","text":"16","page_number":231,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"d5ec758f-d4bb-4352-9943-f8f73a19a659","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":231,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"31b745ad-b1be-4677-a3eb-93c8e2d94a61","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":231,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"47bbb3f3-dd73-411c-9208-bdddac27e3cf","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":231,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"3acb9182-09d1-4aef-aab8-e20d24cb771e","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":231,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"3ce92f0b-cac6-46a0-9a6a-b8987a3b3082","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":231,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"3ca9916e-04fa-4131-9d0a-c45f6b71841c","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":231,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"a1ec94ad-8f2d-4e5c-b84d-62717bb92533","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":231,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"6e682bfe-a699-47bf-89b5-66fbfc1fe9cc","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":231,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"8aef3101-e27e-4d6b-8a94-8c95be636c98","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":231,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"953a444f-b42c-4996-a64d-65e617d79079","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":231,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"dc1cc885-244c-49d3-b558-af40968094b8","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":231,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"7e329e16-0306-40ff-8427-5cb0d060c501","block_type":"box","text":"impacts.","page_number":231,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"526f74e1-51ff-4c51-87ee-644cb3c53ac4","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":231,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"39cb83e4-ab62-4361-a0b9-cde682427121","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":231,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"81168b77-1bd6-4182-8551-a547ac1953a6","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":231,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"63f3149c-1c13-4a4c-b02f-be804193690c","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":231,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"a88575b8-507c-4ada-9cfd-bb4d4d7866f2","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":231,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"14354706-6463-4a10-a4b3-6f070ef3eb18","block_type":"box","text":"clients at the global and regional level.","page_number":231,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"bdcb6e8f-8ae2-493a-b813-90440d06d79e","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":231,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"8b3ffac1-fb69-4a9a-bb59-e07c62c98129","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":231,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"49d19842-ba57-4ad3-b210-3f43351140ba","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":231,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"74d69922-37c9-414c-a143-85931aa61595","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":231,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"4a33bea3-87fd-4c48-97e2-ba477961f867","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":231,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"a3dc9d39-2834-4d02-8a7c-3e1016bb3c89","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":231,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"51c5ff58-ab37-4218-95fe-3f3fe2333aa0","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":231,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"a8abb0f1-9128-47f0-8da5-ed2f8b9f86b9","block_type":"box","text":"are independent from the investment stewardship function.","page_number":231,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"87c52619-e19b-4de9-951d-5bab0ecb5186","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":231,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"5c1343cf-88f5-40d1-a631-cf1fc6d81441","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":231,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"4a05f93e-5a7c-4f2c-883f-17d7de9d245d","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":231,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"6da7d522-510c-40da-b6bc-e0164d76d025","block_type":"box","text":"VOTE EXECUTION","page_number":231,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"813a6c5e-71a6-438b-b9c3-20b04ef472c4","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":231,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"26ae1e4a-f0d1-4b46-b557-bb6862b96aa7","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":231,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"2dbbeacb-780a-456f-8785-4546d899d788","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":231,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"24386c64-acd5-4cef-a8e0-0b4f166567d1","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":231,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"5d082859-a2e8-4da5-8179-a8112141f20e","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":231,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"683ae877-e906-4cc0-9601-ec9ee66155df","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":231,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"3f0d508d-9b67-4d2c-87e5-f118c073dc83","block_type":"box","text":"management policies and procedures,” below).","page_number":231,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"25b63a90-61f9-404a-b36b-e030c1524af0","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":231,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"9a858188-255a-4e05-941c-3af74e88ab47","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":231,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"4b44cbfa-05c2-4014-895d-c04d0333c39e","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":231,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"ac3aeaa6-6af2-49a2-a3be-bef55c43ded2","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":231,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"0c7426a6-4d25-4966-9867-826e3c0b4e0b","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":231,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"10055415-e101-4b43-a038-82b99a9c859b","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":231,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"8bcb135b-ee96-46cb-a8c4-c74ad0a10b75","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":231,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"36670307-bd4c-4197-a81a-b09caf6158e6","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":231,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"04977db1-ede8-4bf4-afbb-bd1f9dcb4a02","block_type":"box","text":"16","page_number":231,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"19f052a3-3d17-44dc-aee7-e4630e25f877","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":231,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"c24a553e-30b5-4a88-8af5-4d72cf3dfc60","block_type":"box","text":"December 2025.","page_number":231,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"ed6fa65e-c70f-419f-835d-f1a474f7a67c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":231,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ab2f6da9-8a38-4ece-8496-1085de2e5445","block_type":"box","text":"Global Principles | 12","page_number":231,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"ac468237-0764-4b2a-92f8-ed7f793c840a","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":231,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"609eb038-ca19-470a-bfc2-2f2d15ba6263","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":232,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"156a2a60-0362-4b87-9233-468c1c226a44","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":232,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"89528f6d-79ba-4790-804a-5ba32e60669c","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":232,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"40e5295b-f8e4-41bc-a257-41bdd8f58545","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":232,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"4a4c5118-790b-49bc-9b3f-553ecf68919c","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":232,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"d21c304a-7141-4360-adcb-f3b2b83e070e","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":232,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"4e4457d4-25f0-4d34-813f-ca81541a60c5","block_type":"box","text":"enterprise-level vendor management activities.","page_number":232,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"f223181f-4798-46f9-8bd5-286ef1284eca","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":232,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"0a2ed1df-05a6-4062-baed-fd87fae73742","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":232,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"229c8329-c7dc-4aab-be69-2a9a9f7600d4","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":232,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"f22e81e8-6768-4bfa-8cb0-0aa6b403ddc3","block_type":"box","text":"BlackRock employees.","page_number":232,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"2a484ae8-6cca-4133-88df-8581a0470b50","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":232,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"e1f72897-3e03-4026-a581-7ccfa1e842a2","block_type":"box","text":"SECURITIES LENDING","page_number":232,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"f9939e40-9c54-4f9f-ad74-b87ce9755c53","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":232,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"61362f15-c55a-4d66-bb16-cfdb78263247","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":232,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"cef76a6d-54c2-45fc-9712-9e975125802a","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":232,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"d52d4668-9640-471a-a2a6-974784859e22","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":232,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"5788c643-5f17-4d86-877a-90738382ca3d","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":232,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"86a9c205-6f39-41f6-bf3a-55e462c5e969","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":232,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"2117f6c5-6143-408d-ad69-3c7e3077ef25","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":232,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"2017273f-53af-4670-950c-69e054c404da","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":232,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"3cec8871-d71e-40e7-ab05-519576432d8d","block_type":"box","text":"recall securities on loan as part of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":232,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"25dac256-857c-4fee-90d7-ec8797f52996","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":232,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"a54842a8-e8ac-4a5b-a125-57efb76a0f7f","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":232,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"d648aea2-8779-41cc-b831-70366b9ddaf2","block_type":"box","text":"of recall consideration).","page_number":232,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"21dcb6c6-37b9-4401-b6ed-b3eafb653fe5","block_type":"box","text":"17","page_number":232,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"9ce7da7a-0435-4158-b26f-1e80d83adb3c","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":232,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"c8f1090d-b2bb-4275-b077-9dbc753b38fc","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":232,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"d257912a-8a6a-4613-a4d4-af12ef3e6e99","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":232,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"4734fead-d613-4bde-8c2b-de879cd3b6a7","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in certain instances,","page_number":232,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"00703c7d-3e10-46a3-9a5a-959bf6688f9f","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":232,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"51199140-129e-4ed0-8833-f9d2065cfcac","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":232,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"404bb289-5077-42ba-add5-da938e90668d","block_type":"box","text":"important to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":232,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"8ba90b54-5a68-4fb8-976e-dcf6c7160feb","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":232,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"c339e2d6-9f2c-461e-b077-4135b163d8ac","block_type":"box","text":"and may modify it as necessary.","page_number":232,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"dc7f7138-efd3-4c61-917e-5508151ec00a","block_type":"box","text":"VOTING CHOICE","page_number":232,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"1170e2d1-f686-4535-8645-cbbd5d28381c","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":232,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"c00925e1-16dd-4159-830b-fd81f2528b3d","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":232,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"e2ba61d2-f07b-4701-8f9a-58dadef93e92","block_type":"box","text":"18","page_number":232,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"a6d6140f-c04c-4c74-bf59-a9465fbc1685","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":232,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"73ea11a6-eb8a-458f-bf55-e149685a4491","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":232,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"bb4eed99-a70e-4b7f-82b8-62d9ed3fa672","block_type":"box","text":"17","page_number":232,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"b01a1a39-0f3e-4789-9c98-1f199b924305","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. 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As a result, managers must weigh independent","page_number":232,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"40b13073-f962-4d52-8f2b-236b59fc1d6b","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":232,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"80c7effc-2f3c-448f-beda-06716c4c9bca","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":232,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"bbe95edf-12c3-485e-9e90-95cf67d69b7c","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":232,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"f5f9a1d7-93fa-4b6f-a22c-12a946f6b038","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the opportunity to vote).","page_number":232,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"4b3a5b7b-5ef6-49da-8f22-6fa4d05d7c2c","block_type":"box","text":"18","page_number":232,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"c196bceb-399c-43ef-a8e1-7e719c9f989e","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":232,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"5cd901b0-7212-4191-96c9-0e1031dad0f1","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":232,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"9e6a36e7-62ba-49c8-aaa3-66ef08c4a65f","block_type":"box","text":"including the decision to lend securities.","page_number":232,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"f59d9d70-f463-4e7a-95ef-916a4d1cf275","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4b6154a9-9fe7-4fd8-8b69-4ae4d1f45c05","block_type":"box","text":"Global Principles | 13","page_number":232,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"99a6a0c6-9f97-4634-9d29-7149fc50dfac","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fc49c4c6-a3f5-4e3e-9665-a69fabf27078","block_type":"box","text":"certain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":233,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"4901fd8c-5b2a-45b0-b960-530235df98fe","block_type":"box","text":"(SAE) strategies. 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All other trademarks are those of their respective owners.","page_number":234,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"49ab010a-a5ab-41c0-a865-21b84cc9113b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":234,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4823ec5a-ab4c-4cdf-9580-448ebfea09e3","block_type":"box","text":"Global Principles | 15","page_number":234,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"6f14e28d-df10-4f1f-ae69-dc013b3a00b0","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":234,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28772f38-2975-4ec5-a404-8dfb33f456fd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":235,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"aa96b25a-cad1-4e23-b646-54d25b2e48a7","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":235,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"67d550b7-f02b-48a3-9cd8-87e4e9a8002e","block_type":"box","text":"Effective as of January 2026","page_number":235,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"4dcffb9d-ee12-42e0-94b8-7e870a438e8d","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":235,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1309ba0c-8565-4cc7-9e7f-caca0dd10f89","block_type":"box","text":"Contents","page_number":236,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"108d23ea-e483-4a1c-9588-743cb8210206","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":236,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"0db8bfd1-5e80-4196-a15d-afb97072456b","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":236,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"a1e213ab-173e-41d3-bc0e-dc6e6e023278","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":236,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"be7704d3-e1d8-4a1a-9812-1338bc8aa186","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":236,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"a2df1824-6155-4675-9577-e0d49c08f797","block_type":"box","text":"The Guidelines’ design principles","page_number":236,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"47a435ec-0f04-4a9e-a16b-f7b9ea308bc1","block_type":"box","text":"4","page_number":236,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"bfbf946e-b96e-48d7-93f5-c72d7c23f89a","block_type":"box","text":"Voting approach under the Guidelines","page_number":236,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"04740d71-dac1-4faf-a691-cbcf85b6a6ed","block_type":"box","text":"5","page_number":236,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"7d21ade9-2098-447c-aadb-403e667700b4","block_type":"box","text":"Related matters","page_number":236,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"1cdbf0f1-efd0-4ce0-9ca6-a7dc61c5e306","block_type":"box","text":"8","page_number":236,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"cb49bb58-98a3-495b-bd0e-6eca61b360e6","block_type":"box","text":"Appendix 1","page_number":236,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"42c4ce42-b2d2-49a7-8be2-1a1272d71beb","block_type":"box","text":"10","page_number":236,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"74586532-1486-443d-a2e4-33d9a5eade6a","block_type":"box","text":"Appendix 2","page_number":236,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"8f7dbc43-d0f8-4bbd-83a7-f36273d0a36c","block_type":"box","text":"11","page_number":236,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"70d55942-343e-40ee-96cc-2811ae843194","block_type":"box","text":"BlackRock Investment Stewardship","page_number":236,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"df5a63e3-de51-40ec-a2d4-f8ff092f004a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":236,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"4241ed35-77b6-4408-858f-c765971754d3","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":236,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7157565b-f80b-4dfd-949e-7c0dce641453","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":237,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"efd5cb4b-178b-401d-8108-fb60013a66e6","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":237,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"aacf562d-fd47-43f1-9b9b-f3c6e1e2c6bd","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. 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Net zero commitments are sourced from respective","page_number":237,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"bd838e81-5fd0-45a8-9fef-db2d7fc59521","block_type":"box","text":"company websites, as of January 2025.","page_number":237,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"8ee4357e-b7c6-4c4d-86b5-6b55b7733abb","block_type":"box","text":"5","page_number":237,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"bd77ee76-3c68-42f0-8444-30de823b7ce3","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":237,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"cd8bee36-d7b0-4248-a5b8-ed975a96e968","block_type":"box","text":"6","page_number":237,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"2aa5e7b1-a867-439b-9aec-5dad461aba30","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":237,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"1142a418-ac8d-42df-ad5e-576d08af86d8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":237,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"870065ac-8826-471e-b09b-4eba902a9108","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":237,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"ac7e184f-028a-439b-80fe-dc41c98e80d3","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":237,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ebc189b7-e534-4ff7-87b9-9d1bef9eedb4","block_type":"box","text":"particularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":238,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"05f4f91d-e40f-4bef-a879-970a15606f6a","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":238,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"9d1863f8-e2e1-4a1e-a187-8f2f97cb8fd2","block_type":"box","text":"7","page_number":238,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"e46e0d47-0c5c-4b14-9c93-e8b74e83d513","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":238,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"cfc0a556-c67b-4483-907d-0cf76c8a2ab7","block_type":"box","text":"Benchmark Policies.","page_number":238,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"d79cb4b8-10f2-45ec-bd03-a3a4c8acc8bd","block_type":"box","text":"8","page_number":238,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"97c8c294-6de0-4997-bf38-22920d937b02","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":238,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"4b339343-923b-452b-bffa-7602998b9b1b","block_type":"box","text":"decarbonization as an investment objective, BIS undertakes our stewardship responsibilities in line with our","page_number":238,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"02c341d4-bcf8-40a9-98f9-a25a773beb23","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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Under the Guidelines, the dedicated team","page_number":239,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"659a3453-17eb-4caf-8a52-615c1c255a2e","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":239,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"9d35be6b-cd71-487b-a8c8-e30ac4a61d1b","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":239,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"169031c7-d36f-4600-9e40-7ab10ce28447","block_type":"box","text":"Voting approach under the Guidelines","page_number":239,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"08d87855-6ecd-450d-b6ad-97cc994889a0","block_type":"box","text":"12","page_number":239,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"399e05d2-fb9f-40ff-a21a-5005b053cfdb","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":239,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"79521f1b-9f7e-42df-9dc7-68151ae45fc1","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":239,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"1d8ec645-80fb-4ae6-9d4a-c0d24df41b46","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":239,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"0e29d114-845f-4add-8ecd-1f8e988e1766","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":239,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"373b0b3f-d3bb-46fb-9f1a-7fab3a3ee53c","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":239,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"f909195e-9c04-4693-9432-fac8524945f9","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":239,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"7465ad0b-919d-4c88-8361-df52c55b65ef","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":239,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"f512428a-bf38-4592-a6ed-227f02a425fe","block_type":"box","text":"Corporate Disclosures","page_number":239,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"f110d4b8-cb61-4aa3-8612-f02c8c3bb0d0","block_type":"box","text":"13","page_number":239,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"0c4b14ac-ff08-4ed0-bc29-562d92384b8b","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":239,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"19eca61b-8d9a-43c8-88f0-56e42762ad59","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. 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Please refer to the IFRS website to learn more about the framework and standards S1","page_number":239,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"6758a3f9-8536-4529-b157-30d090ae37e9","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":239,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"21a2631b-d540-409a-9fbd-fd88179b3df4","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":239,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"ee114c63-bac8-4aae-9f28-add413057764","block_type":"box","text":"15","page_number":239,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"2e299a17-56fa-4acf-9dd6-94095892ead7","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":239,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"d6fbb5cf-ac30-43d0-99a8-234ca67bee2f","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":239,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"fc3164c5-1c5e-4552-aa66-b722ae0fc136","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":239,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"5c72f77c-6367-4099-8807-8263acc51c87","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":239,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"60f58e19-527f-427d-b953-ac8473eee2f9","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":239,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"50aa26ef-d0df-4eca-b162-927bf97de165","block_type":"box","text":"BlackRock Investment Stewardship","page_number":239,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fd098ce1-54e7-4136-932e-8885f19042f7","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":239,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"feba00e1-34ad-4724-b555-6960b2ca03ee","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":239,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cb4bbbbc-4b4f-47eb-8818-538bedeadb42","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":240,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"8a3b4233-7e16-47f9-adde-40ab79008fc8","block_type":"box","text":"16, 17","page_number":240,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"d6002441-6d56-4adc-9c52-c34215222fcf","block_type":"box","text":"In addition, the dedicated team looks to","page_number":240,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"b708db9b-d874-485a-9edf-9f5854131d76","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":240,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"6fd6b7f0-a8a6-43f4-90c6-4c8bab46cb15","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":240,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"174c7356-3015-436f-8e85-d4da8c82f43c","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":240,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"f2e1f6e1-cf7f-4282-9e5e-7734d81568fa","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":240,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"18f92273-b8f1-495d-86a9-aa8d5c8f55ed","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":240,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"cdca168e-938a-42ee-b5da-22786fee781b","block_type":"box","text":"18","page_number":240,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"1f3e268e-e3fd-4e68-aa8a-6cdc977bf2c2","block_type":"box","text":"However,","page_number":240,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"b803d4eb-388a-48e8-b8ff-595fc28347b7","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":240,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"8b5468d4-767a-4184-a59d-9a5282ed0dd7","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":240,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"f3b80605-830a-45a3-bbd3-aeed02ebf9f4","block_type":"box","text":"their decarbonization targets. For some companies that play an important role in the low-carbon transition, scope","page_number":240,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"1683410a-d8a6-4d3f-8bdd-aba8e48e1914","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":240,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"e7f7d3b1-857a-462b-a0c7-b63c8852f987","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":240,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"6bae4146-81db-4967-8794-d03690bf4619","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":240,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"4fa2aa0d-29fb-4564-a754-ae263afa82c4","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":240,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"c8c7dcd8-46a8-4847-945d-61ce88e863fd","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":240,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"ce0b9087-bcdf-427c-9838-9454a1f65e31","block_type":"box","text":"transition risks.","page_number":240,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"0ed4236e-3148-4c85-999b-f385d762ddc0","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":240,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"9568dd88-0fac-4014-b3df-ec0544f25788","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":240,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"1e717f1c-5cf8-48e6-8fe6-1e4a6df7ccc5","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":240,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"595bf91f-4cb9-4fc1-a02c-87455f07df19","block_type":"box","text":"Transition plans","page_number":240,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"f138f2fc-c223-4dc0-b9b2-5b677f4145a3","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":240,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"02c3994e-b19e-48dc-9f10-285a50d1db3f","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":240,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"69b7cd45-0c92-4b8d-a8ad-a651af27ab18","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":240,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"f5a5772c-47c9-45e9-a84f-755bc87437fb","block_type":"box","text":"(see Appendix 1).","page_number":240,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"66376c4e-30d6-463f-8867-2de86eabd5cc","block_type":"box","text":"19","page_number":240,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"a7b12332-fee6-4eb5-a16c-94b44feb007c","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":240,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"bd5e9105-81be-4fba-826b-53a9b535dc2a","block_type":"box","text":"transition plans.","page_number":240,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"02213a1c-f971-4552-8275-1cfe0595efd7","block_type":"box","text":"20","page_number":240,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"4a3c398d-96a9-4617-ad44-8c888b8017a8","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":240,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"447136fa-3a4e-477a-a259-7f2135db5479","block_type":"box","text":"reporting approaches.","page_number":240,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"9e14a2d3-cfb7-4c12-aa5e-f002508f88b5","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":240,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"edff320f-3645-44e7-a57f-a80d9eae6a37","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":240,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"61908c1d-377c-4b22-b6d4-c002d37fde62","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":240,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"32eea08d-5f0e-414f-a57c-cf273be44528","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":240,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"5bc75e3d-f2aa-4e1a-a819-b712afb8cf4a","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":240,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"946561cb-4553-433f-9501-16bfa818f376","block_type":"box","text":"informed voting decisions.","page_number":240,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"f49242d3-242d-445f-acb1-c431f6c502a3","block_type":"box","text":"16","page_number":240,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"2ba73e85-7858-4da6-8ce6-20cfe1389b4b","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":240,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"68261ad9-de4c-4c62-931d-9dc57544d027","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":240,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"9191c764-7a31-4af2-831f-2209050374b9","block_type":"box","text":"December 2025.","page_number":240,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"d18e5db7-8a92-4d10-afea-462839933ad2","block_type":"box","text":"17","page_number":240,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"ad52ae58-5d7c-42cc-9e7d-de97a902be46","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":240,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"a42d0131-8def-4188-8bc6-34b49405a36b","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":240,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"82db978a-e428-45dc-a77e-7abf08c9289a","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":240,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"e53f33e9-9235-492d-b83d-8f770482d902","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":240,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"480a2d6a-d250-4d56-8192-58684d7ab9e8","block_type":"box","text":"18","page_number":240,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"96c20bd5-9af4-4a51-9262-fac9a16eb79d","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":240,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"622fa2fd-c626-47d5-a615-34c89d7b85cf","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":240,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"17468fc3-f8bd-4d9d-b0cb-e05432905ebb","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":240,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"8f11dcfa-d345-4138-ba93-e1f3bc65b632","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":240,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"2c0ffe04-4a08-4efb-baaa-2e07b628ec97","block_type":"box","text":"material to their business models.","page_number":240,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"bb5c8a1f-f052-4b4f-bf3a-2fec335f9aaf","block_type":"box","text":"19","page_number":240,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"6534af21-aff5-4a02-b7c3-3ead5863df87","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":240,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"d16b65dc-9a20-4353-b97f-47712ba78cd3","block_type":"box","text":"December 2025.","page_number":240,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"7f4c2811-2469-42e6-af65-71fdfb940dbd","block_type":"box","text":"20","page_number":240,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"6ef4640d-8562-4d94-9a40-1ac576bdd1f0","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":240,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"503a9572-cd26-4ec4-9294-72ea0b9053a2","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":240,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"6a38073a-9419-43f3-a340-960aa58aa7ff","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":240,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"c56a95c1-97a7-4c08-9177-2559ece9638f","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":240,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"19eaa22c-bd31-40c7-acae-f1f628b46fa5","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":240,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"dc921d16-ed72-4f83-b228-90c96b4d8a86","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Under the Guidelines, the team may support","page_number":242,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"d0581df7-f50a-4cdd-b133-e8e202ad1fe4","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":242,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"5420bda6-e92b-4421-8e54-e002856a4b1b","block_type":"box","text":"•","page_number":242,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"7d58e7fc-b3f7-41b9-a982-57009f6f3e21","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":242,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"fdf759fc-50c7-4af9-86ac-cb8e913aeff7","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":242,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"37ab47d1-098f-43df-acd4-2e571c9756e3","block_type":"box","text":"•","page_number":242,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"5c84a5c4-b5e0-4c9a-8641-1973eafeeb25","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":242,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"76d9f8ef-79b9-4336-8ec3-c916af1e824a","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":242,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"6b50a309-714a-4749-a147-42161bfc5e67","block_type":"box","text":"•","page_number":242,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"2f01cf34-80f8-4c5d-9e05-02685ad5d7ea","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":242,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"03841823-d616-460f-9b8c-4416bc0f46ac","block_type":"box","text":"•","page_number":242,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"93deb2bb-0c4e-4fcb-9b45-73af04d48e58","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":242,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"e9c4f1b1-1668-496f-86cc-07a628e8b0d1","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":242,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"e3c38d07-20dc-4d5d-8545-2f4cab0773b4","block_type":"box","text":"25","page_number":242,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"46b0b063-c672-46e4-9048-0712400f006a","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":242,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"19155bd4-3e1f-4a48-a371-73c4a6c88dbc","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":242,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"6561e304-07bd-4a27-b4f7-8a0550d37939","block_type":"box","text":"RELATED MATTERS","page_number":242,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"0814fd76-3fff-402d-941d-335cc61f23f9","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":242,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"eb1ca54a-9314-4fe7-a151-0dd530d56fd3","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":242,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"da466500-576e-4dbf-981b-6df268c7ea34","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":242,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"ba18fbca-233c-4ea2-85b4-a6316201edf2","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":242,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"60e035ad-f9da-4191-9f8e-c12051a456cc","block_type":"box","text":"Executive compensation","page_number":242,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"4e6521dd-95e2-4a3f-b67f-27f252604e21","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":242,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"eb68b34c-7801-475a-bcde-2ab33e490c79","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":242,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"12e9f61f-701f-4445-9197-6453172f394a","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":242,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"762d0231-8222-40ad-af07-8ff75e6d16cd","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":242,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"6eddbbb1-8270-47ad-b973-d9f76c3e2c22","block_type":"box","text":"24","page_number":242,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"0224517b-d6f2-4b47-9a08-4bebeaa7b820","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":242,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"7ab5619a-d7db-486b-9343-00c2258e5d0e","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":242,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"c1e461de-3419-4802-a830-750bccd0188f","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":242,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"751a132c-179f-4009-91be-c38043741ea4","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":242,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"0a6320b3-3186-4730-867f-f92309fdaf2d","block_type":"box","text":"25","page_number":242,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"04f8a002-fe84-47c4-b631-b5c8616bef96","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":242,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"62f2c40c-4ce8-4e50-9001-ee7536edb779","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":242,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"de49687c-abee-4395-8184-a0fdedadeac7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":242,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"814faa05-b6bc-4628-bf9a-7af09a0d6329","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":242,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"f45066ca-7602-44d9-aa9c-a5ed149419b9","block_type":"box","text":"BNM1026U-6032383-19202704","page_number":242,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b34bcbc2-4c55-4405-a2cf-9f92ca94072d","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":243,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"f1c215b9-0b4b-4393-a24e-37f9097cf48c","block_type":"box","text":"strategy and risk management.","page_number":243,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"9dbeecd2-27b7-48df-a972-7cf1230406c5","block_type":"box","text":"Auditors and audit-related issues","page_number":243,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"a673e869-193f-4d48-bacf-d8e880d23b70","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":243,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"9430fc43-bb5c-4f0c-8f6d-8c2512752ac4","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":243,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"9c7bcf1b-e2fd-4045-aed3-4405a1f47083","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":243,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"ccab3df4-6e6a-4ffd-94a0-ea28129d02c6","block_type":"box","text":"context of its audit report. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":243,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"c79aa080-1b9c-4aaf-8f55-3769221a07c5","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":243,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"5bd1df8f-a4b3-4bf4-aea5-a2cb9434c584","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":243,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"f525c483-2661-4378-90df-853411d3a8ff","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":243,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"73412ea6-a7b4-4e92-9f7b-fcd93fe0141f","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":243,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"fb012c20-1945-44e2-856c-03bc20bc8d0a","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":243,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"30609ca5-0438-489a-9cae-46eeb8817e91","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":243,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"d0f35377-7fb1-4b30-b091-301449a7114d","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":243,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"69465e92-1ea3-40be-b4fb-dfce70e6e5b3","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":243,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"fc701624-2875-43dc-87f6-5fa8bd6d27c4","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":243,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"09b8c2fd-287c-4b64-9e79-370e1ee1d033","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":243,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"345b2568-94e1-4d10-8300-6175dcb172e9","block_type":"box","text":"stakeholders.","page_number":243,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"d46dac94-6462-4c98-a6e6-0fbe1a62517c","block_type":"box","text":"26","page_number":243,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"c7fd8dfe-b24d-4649-affc-ede16a1cd310","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":243,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"4442ef59-0a71-446b-ab5f-1dcc86a7dab1","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":243,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"1d823538-5c19-47a7-90c5-7eded072c208","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":244,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"e1765d00-039c-4cde-8e48-e51605487efb","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":244,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"b70e2ab0-7fcb-4bc9-b7d8-1ae50d1fc522","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":244,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"2f4568cf-1eff-4dec-ac50-2af28f0f7806","block_type":"box","text":"Decarbonization:","page_number":244,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"1b2419c6-3070-4225-bc0d-7d22e918ce70","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":244,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"86a76b88-41a8-4c19-83fc-ef09649f62be","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":244,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"912abe58-cc79-461f-9281-15fd17099b80","block_type":"box","text":"individual consumers. 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