{"annotation_id":"5424fa95-e365-4d48-8b2f-0c442ce7810e","file_hash":"a944d72440648fb01a98fb8f14145ba384005ce0a81250915ecb7ae794a6f99e","schema_id":"open/document-extraction","schema_version":"0.5.0","record":{"extraction_type":"boxes","producer":"pdf-extractor-v0.5.0","blocks":[{"id":"2c4e43b9-bc6f-455a-ba8b-4817c593dc8e","block_type":"box","text":"STATEMENT OF ADDITIONAL INFORMATION","page_number":1,"box":{"x":271,"y":83,"width":435,"height":11}},{"id":"05f3b986-7c2d-411e-b1cd-46b4a99348ac","block_type":"box","text":"BlackRock Series, Inc.","page_number":1,"box":{"x":352,"y":120,"width":275,"height":17}},{"id":"f5875d8f-b5d9-4a24-81bd-3c82ac4ba706","block_type":"box","text":"BlackRock International Fund","page_number":1,"box":{"x":381,"y":149,"width":216,"height":9}},{"id":"bad54d7c-4bd0-41bf-8efa-c13b648af751","block_type":"box","text":"100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 441-7762","page_number":1,"box":{"x":118,"y":176,"width":742,"height":14}},{"id":"1fe7938a-dcb3-4bcd-8b06-6a7ecb5a89dc","block_type":"box","text":"This Statement of Additional Information of BlackRock International Fund (the “Fund”), a series of","page_number":1,"box":{"x":101,"y":233,"width":746,"height":11}},{"id":"a85140c7-4217-4ac0-abbb-6f5b45226b53","block_type":"box","text":"BlackRock Series, Inc. (the “Corporation”), is not a prospectus and should be read in conjunction with the","page_number":1,"box":{"x":70,"y":248,"width":796,"height":12}},{"id":"aa809086-1f11-42e9-bd13-771df971efb9","block_type":"box","text":"Prospectuses of the Fund, dated September 28, 2026, as they may be amended or supplemented from time to","page_number":1,"box":{"x":70,"y":264,"width":836,"height":11}},{"id":"e4962321-7465-4206-9177-282b2e670261","block_type":"box","text":"time (each, a “Prospectus” and collectively, the “Prospectuses”), which have been filed with the Securities and","page_number":1,"box":{"x":69,"y":279,"width":831,"height":12}},{"id":"af4fb7d6-2618-4acc-aae8-4d9c0abea02f","block_type":"box","text":"Exchange Commission (the “Commission” or the “SEC”) and can be obtained, without charge, by calling","page_number":1,"box":{"x":70,"y":294,"width":788,"height":12}},{"id":"2fb3ed94-9a15-4294-a843-6936b8eff13c","block_type":"box","text":"(800) 441-7762 or by writing to the Fund at the above address. Part I of this Statement of Additional","page_number":1,"box":{"x":69,"y":309,"width":762,"height":12}},{"id":"8277abca-d0bf-40bb-aeff-7a1d5c9e9088","block_type":"box","text":"Information and the portions of Part II of this Statement of Additional Information that relate to the Fund have","page_number":1,"box":{"x":70,"y":324,"width":838,"height":12}},{"id":"54a023e9-ee6e-445b-ba93-5068826fd48a","block_type":"box","text":"been incorporated by reference into the Prospectuses. 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The audited financial statements of the Fund are incorporated into this Statement of","page_number":1,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"d93a75c8-7c14-4724-b711-2b1f6c90a2e5","block_type":"box","text":"Additional Information by reference to the Fund’s Annual Financial Statements and Additional Information for","page_number":1,"box":{"x":68,"y":400,"width":839,"height":12}},{"id":"31ff23a2-f45b-493b-b3dc-b9a80af8c4f9","block_type":"box","text":"the fiscal year ended May 31, 2026, as filed with the SEC on Form N-CSR (the “2026 Annual Financial","page_number":1,"box":{"x":69,"y":415,"width":773,"height":12}},{"id":"d29ddcd5-ebfc-48e2-bbbd-0d92420400e8","block_type":"box","text":"Statements”). You may request a copy of the 2026 Annual Financial Statements at no charge by calling","page_number":1,"box":{"x":69,"y":430,"width":783,"height":12}},{"id":"844dcef8-bf89-43da-ae8c-18f1311b9dea","block_type":"box","text":"(800) 441-7762 between 8:00 a.m. and 6:00 p.m. Eastern time on any business day.","page_number":1,"box":{"x":69,"y":445,"width":637,"height":12}},{"id":"ceb6c256-5854-4811-a2cf-1083e938c2d5","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act”), or","page_number":1,"box":{"x":103,"y":468,"width":767,"height":12}},{"id":"2c410fe9-3bc4-49c1-a94f-4abe42220dcd","block_type":"box","text":"other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or","page_number":1,"box":{"x":69,"y":483,"width":796,"height":12}},{"id":"c107e3e2-f841-4c99-b6f9-4cc9fa23bd44","block_type":"box","text":"modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including","page_number":1,"box":{"x":70,"y":498,"width":837,"height":12}},{"id":"cfadba19-7215-4b46-b0a7-f2b63f7c7c16","block_type":"box","text":"court interpretations, and exemptive, no-action or other relief or permission from the Commission,","page_number":1,"box":{"x":69,"y":513,"width":749,"height":12}},{"id":"ca7e2427-f4b7-4854-83d1-19ff50f01064","block_type":"box","text":"Commission staff or other authority.","page_number":1,"box":{"x":70,"y":528,"width":274,"height":12}},{"id":"0b9bbea9-ae91-43c5-b6bd-8b532c6d7875","block_type":"box","text":"Class","page_number":1,"box":{"x":69,"y":557,"width":31,"height":7}},{"id":"fa8014a9-8010-4edf-b61a-296d07c028ec","block_type":"box","text":"Ticker Symbol","page_number":1,"box":{"x":827,"y":557,"width":82,"height":9}},{"id":"295b553f-1fe0-4922-a62e-4afa50c6b32b","block_type":"box","text":"Investor A Shares","page_number":1,"box":{"x":70,"y":575,"width":124,"height":8}},{"id":"64ed7ad7-445f-441a-ae03-ac0dc495dc12","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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MKILX","page_number":1,"box":{"x":183,"y":635,"width":708,"height":9}},{"id":"9cbffba3-30e8-4f08-9355-4d1a8d728968","block_type":"box","text":"BlackRock Advisors, LLC — Manager","page_number":1,"box":{"x":260,"y":690,"width":460,"height":19}},{"id":"dc290307-f677-4132-a3e6-f339427b1770","block_type":"box","text":"BlackRock Investments, LLC — Distributor","page_number":1,"box":{"x":222,"y":712,"width":536,"height":18}},{"id":"7b62ec6e-7869-4da8-8ffd-aee2afd3e469","block_type":"box","text":"The date of this Statement of Additional Information is September 28, 2026.","page_number":1,"box":{"x":199,"y":772,"width":579,"height":11}},{"id":"c601c329-89ba-445e-98cc-af06932dfb13","block_type":"box","text":"NM0926U-5975843-1/228","page_number":1,"box":{"x":764,"y":970,"width":140,"height":7}},{"id":"57f3dec8-d448-4eb8-bb0d-91b00163596f","block_type":"box","text":"TABLE OF CONTENTS","page_number":2,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"02c7a324-895b-43d6-886b-41e10899fd90","block_type":"box","text":"Page","page_number":2,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"c907bf56-0b04-497f-a1f6-69a1e13baad9","block_type":"box","text":"PART I","page_number":2,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"83a1fa68-819d-4904-83b7-3ac64bc5bee1","block_type":"box","text":"Investment Objective and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I-23","page_number":2,"box":{"x":358,"y":207,"width":551,"height":9}},{"id":"0b455017-7387-476a-bfd5-c2bd471e4805","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"c6bb7cda-c763-4b0b-bebd-592fc659b3c1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-25","page_number":2,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"57a5c964-6968-4b56-8fab-c3bb32ec8842","block_type":"box","text":"Financial Statements","page_number":2,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"edd321d2-1a63-473e-9b99-9631eb92df8d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-27","page_number":2,"box":{"x":227,"y":239,"width":681,"height":9}},{"id":"4e708b50-a590-41cd-ab9c-d8b59c9ae9c7","block_type":"box","text":"PART II","page_number":2,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"b536e1b6-477c-4c0f-8ac8-91975c87d299","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":2,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"e1aee23e-8f5c-422e-8308-5980e67b16b2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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II-84","page_number":2,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"338d9070-0a07-4a20-af62-be6a6e0c76f0","block_type":"box","text":"Purchase of Shares","page_number":2,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"1e95747e-bb19-4133-adf0-cab0c7694c56","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-97","page_number":2,"box":{"x":211,"y":336,"width":697,"height":9}},{"id":"4ddff9e7-bcc8-405f-b0c8-8e057fe8d3aa","block_type":"box","text":"Redemption of Shares . .","page_number":2,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"90d7efd1-d27a-4190-babe-173fa1eda97d","block_type":"box","text":"........................................................................... 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The Fund may not pledge its assets","page_number":8,"box":{"x":102,"y":551,"width":773,"height":11}},{"id":"6513871c-d36a-4282-99e2-df8aae532477","block_type":"box","text":"other than to secure such borrowings or, to the extent permitted by the Fund’s investment policies as set forth in","page_number":8,"box":{"x":102,"y":566,"width":807,"height":11}},{"id":"6ab53cff-b918-40c8-907e-4182a14404f7","block_type":"box","text":"its Prospectus and SAI, as they may be amended from time to time, in connection with hedging transactions,","page_number":8,"box":{"x":102,"y":581,"width":774,"height":12}},{"id":"4a6cb942-3784-42a4-be31-c69d503d52ea","block_type":"box","text":"short sales, when issued and forward commitment transactions and similar investment strategies.","page_number":8,"box":{"x":102,"y":596,"width":703,"height":12}},{"id":"23de7335-6b25-460b-b22c-ecdefdbc4572","block_type":"box","text":"(8) Underwrite securities of other issuers except insofar as the Fund technically may be deemed an","page_number":8,"box":{"x":134,"y":619,"width":707,"height":11}},{"id":"b2c4b14c-063f-44d6-9952-34342f243ea7","block_type":"box","text":"underwriter under the Securities Act of 1933, as amended (the “Securities Act”), in selling portfolio securities.","page_number":8,"box":{"x":102,"y":634,"width":788,"height":12}},{"id":"5c552efe-a886-459d-aee2-ee637c6b622e","block_type":"box","text":"(9) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so","page_number":8,"box":{"x":134,"y":657,"width":773,"height":11}},{"id":"ea085f45-7acd-40a4-8aca-8b24dfed1987","block_type":"box","text":"in accordance with applicable law and the Fund’s Prospectus and SAI, as they may be amended from time to","page_number":8,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"39c0d244-b521-4191-8e34-5f977891e556","block_type":"box","text":"time, and without registering as a commodity pool operator under the Commodity Exchange Act.","page_number":8,"box":{"x":101,"y":687,"width":681,"height":11}},{"id":"8a5638db-c490-4d18-9672-2b2966c5f534","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":8,"box":{"x":102,"y":710,"width":494,"height":11}},{"id":"e07d3aec-bebc-4115-bb34-7fc45170b3bb","block_type":"box","text":"The following notations are not considered to be part of the Fund’s fundamental investment restrictions and are","page_number":8,"box":{"x":101,"y":732,"width":799,"height":12}},{"id":"3ef3cd00-c8ce-44e8-89d4-607b0d35ded6","block_type":"box","text":"subject to change without shareholder approval.","page_number":8,"box":{"x":69,"y":748,"width":341,"height":11}},{"id":"9746dd3a-d2bc-43e8-be71-40ccdc90519c","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":8,"box":{"x":102,"y":770,"width":768,"height":12}},{"id":"65515943-1171-43d7-b21d-cca7652520f3","block_type":"box","text":"approval, the Fund may not:","page_number":8,"box":{"x":69,"y":786,"width":197,"height":11}},{"id":"44040998-d101-429c-b77e-66fbbc9257b6","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":8,"box":{"x":134,"y":808,"width":747,"height":11}},{"id":"e55bbd76-f516-4f86-8533-91c6cbc1e24f","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":8,"box":{"x":102,"y":823,"width":759,"height":12}},{"id":"159abd78-2f02-4356-9db0-ace98e2681d1","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":8,"box":{"x":102,"y":838,"width":779,"height":12}},{"id":"7883d824-ec68-4da6-a411-4ccd80df41f1","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":8,"box":{"x":101,"y":853,"width":761,"height":12}},{"id":"6b4cbee0-ff23-4bdf-b1d5-b411bad7ddb5","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":8,"box":{"x":102,"y":869,"width":795,"height":11}},{"id":"e54ef1e8-dfb6-4b0f-860e-99d54b02a71c","block_type":"box","text":"12(d)(1).","page_number":8,"box":{"x":102,"y":884,"width":60,"height":11}},{"id":"d2c27d63-e93e-432c-97a1-17a8d7db8434","block_type":"box","text":"I-6","page_number":8,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"566b8e08-bbb2-470a-90d0-51ca48607242","block_type":"box","text":"NM0926U-5975843-8/228","page_number":8,"box":{"x":764,"y":970,"width":140,"height":7}},{"id":"2332945f-3f62-407d-8e45-70a52db0d10d","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":9,"box":{"x":134,"y":45,"width":770,"height":11}},{"id":"82431f15-5991-41c4-862c-bf3e6e921291","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":9,"box":{"x":102,"y":60,"width":509,"height":11}},{"id":"9d12f949-3c0a-4931-8b35-aedce1fe4330","block_type":"box","text":"Except with respect to restriction (7) above or with respect to policies adopted pursuant to Rules 35d-1 under","page_number":9,"box":{"x":102,"y":83,"width":780,"height":10}},{"id":"485e4741-5f07-4492-998a-a5dfe1c1e8a5","block_type":"box","text":"the Investment Company Act, all limitation under the Fund’s fundamental or non-fundamental investment restrictions","page_number":9,"box":{"x":68,"y":98,"width":832,"height":11}},{"id":"dfa97d3c-01ce-4bce-a5fe-c3962e9a12ed","block_type":"box","text":"apply only at the time that a transaction is undertaken. Any change in the percentage of the Fund’s assets invested","page_number":9,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"00eb53b0-5743-44fe-b664-766792f58029","block_type":"box","text":"in certain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":9,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"f048ba50-ab18-42eb-82af-e78b5f4d9407","block_type":"box","text":"assets will not require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell","page_number":9,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"0d633a8c-e411-4b0e-89e7-9622066211c8","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":9,"box":{"x":69,"y":158,"width":511,"height":11}},{"id":"0d2092aa-8ae4-4d28-9869-6623047a6739","block_type":"box","text":"For purposes of investment restriction (2) above, with respect to the Fund’s industry classifications, the Fund","page_number":9,"box":{"x":102,"y":181,"width":778,"height":11}},{"id":"5ee78e89-b7d8-4e38-9492-46e924a9cf05","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":9,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"bf05af60-37fd-4a74-bcd9-ba8fec1d5a74","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":9,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"f98af3a1-dff8-4f78-8a7e-68157d37b783","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":9,"box":{"x":69,"y":226,"width":597,"height":11}},{"id":"c3f36aa2-2c73-4347-bcfc-8f5ae63ba13d","block_type":"box","text":"III. Information on Directors and Officers","page_number":9,"box":{"x":69,"y":256,"width":294,"height":9}},{"id":"ce6494f8-6088-4488-af99-f22054a3ebec","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thirteen of whom are not “interested persons” of","page_number":9,"box":{"x":101,"y":279,"width":790,"height":11}},{"id":"e0befd0e-bf34-42d5-8a62-27c8d29bbf8b","block_type":"box","text":"the Corporation as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":9,"box":{"x":68,"y":294,"width":828,"height":11}},{"id":"31c194c5-3109-41b8-a88c-6bf6af615c53","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":9,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"36a3abe5-11f9-4773-9994-3dbcc36d6d4a","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":9,"box":{"x":70,"y":324,"width":793,"height":11}},{"id":"242d08ac-c3d2-4e64-a314-8235a4bebc76","block_type":"box","text":"Complex”). The Corporation is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset","page_number":9,"box":{"x":69,"y":339,"width":799,"height":11}},{"id":"8a20526a-6a6e-4dc7-aad9-e5a1ea2d9dcb","block_type":"box","text":"Complex. The Directors also oversee as board members the operations of the other open-end registered investment","page_number":9,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"31c61ac7-ec1d-4d87-981a-415d1a98f694","block_type":"box","text":"companies included in the BlackRock Multi-Asset Complex.","page_number":9,"box":{"x":69,"y":370,"width":418,"height":11}},{"id":"fa0eec47-a1e4-4971-8036-7fd467129437","block_type":"box","text":"The Board has overall responsibility for the oversight of the Corporation and the Fund. The Chair of the Board is","page_number":9,"box":{"x":101,"y":392,"width":794,"height":12}},{"id":"5b4f28ae-1860-4f4e-82e2-067d2bccb435","block_type":"box","text":"an Independent Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director.","page_number":9,"box":{"x":69,"y":407,"width":823,"height":11}},{"id":"fb64467b-06cd-4357-9b1c-068e9b7016c6","block_type":"box","text":"The Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a","page_number":9,"box":{"x":68,"y":423,"width":766,"height":11}},{"id":"26914f5d-3290-4e13-9d4d-dd97cee2b51a","block_type":"box","text":"Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair","page_number":9,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"2f858449-d84a-4db4-8ea5-69c2ec642e8e","block_type":"box","text":"of the Board is to preside at all meetings of the Board and to act as a liaison with service providers, officers,","page_number":9,"box":{"x":69,"y":453,"width":778,"height":11}},{"id":"141f8833-9dda-42ae-9bc9-676d7ce66282","block_type":"box","text":"attorneys and other Directors generally between meetings. The Chair of each Committee performs a similar role with","page_number":9,"box":{"x":69,"y":468,"width":830,"height":11}},{"id":"cb3c4e79-3c69-44e7-9e57-cd08a22d1326","block_type":"box","text":"respect to the Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions","page_number":9,"box":{"x":69,"y":483,"width":836,"height":11}},{"id":"afe6751a-097a-4e36-a7c0-d9d42b4589ad","block_type":"box","text":"as may be delegated by the Board or the Committee from time to time. The Independent Directors meet regularly","page_number":9,"box":{"x":69,"y":498,"width":805,"height":11}},{"id":"efbf7733-1181-4cc6-959b-a9e6eb3318c6","block_type":"box","text":"outside the presence of Fund management, in executive session or with other service providers to the Fund. The","page_number":9,"box":{"x":69,"y":513,"width":802,"height":12}},{"id":"20984b32-1027-42e4-a069-cded9d0e173c","block_type":"box","text":"Board has regular meetings five times a year, and may hold special meetings if required before its next regular","page_number":9,"box":{"x":70,"y":528,"width":788,"height":12}},{"id":"12ee7178-8fb9-4a06-9f33-b539c137c3ad","block_type":"box","text":"meeting. Each Committee meets regularly to conduct the oversight functions delegated to that Committee by the","page_number":9,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"96e04235-5dd4-45a8-88eb-56546ef9b3fa","block_type":"box","text":"Board and reports its findings to the Board. The Board and each standing Committee conduct annual assessments","page_number":9,"box":{"x":70,"y":559,"width":821,"height":11}},{"id":"12250b24-504e-4cc0-ae40-201a745c4cbe","block_type":"box","text":"of their oversight function and structure. The Board has determined that the Board’s leadership structure is","page_number":9,"box":{"x":69,"y":574,"width":767,"height":11}},{"id":"bda6618e-11da-4288-a70e-3e7e32ac885d","block_type":"box","text":"appropriate because it allows the Board to exercise independent judgment over management and to allocate areas of","page_number":9,"box":{"x":69,"y":589,"width":839,"height":11}},{"id":"6d0fcc10-fe1f-457d-9f0e-95306233f630","block_type":"box","text":"responsibility among Committees and the full Board to enhance effective oversight.","page_number":9,"box":{"x":69,"y":604,"width":593,"height":11}},{"id":"298fdc46-b506-4e52-9d64-999928738a9b","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":9,"box":{"x":101,"y":627,"width":777,"height":11}},{"id":"7da0be24-899d-4ffa-a38d-4ce6464b4012","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":9,"box":{"x":69,"y":642,"width":832,"height":11}},{"id":"61847a45-f491-4791-b094-2c2be23a9760","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Corporation’s charter, and the","page_number":9,"box":{"x":68,"y":657,"width":815,"height":11}},{"id":"e0d83638-4a34-42c6-afe3-49558acd4920","block_type":"box","text":"Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance,","page_number":9,"box":{"x":70,"y":672,"width":784,"height":11}},{"id":"b4038787-126a-46a8-a460-c3e93ddc0af9","block_type":"box","text":"operations and investment strategies and techniques. The Board also conducts reviews of the Manager and its role","page_number":9,"box":{"x":69,"y":687,"width":823,"height":11}},{"id":"45508afa-87a3-4b2d-b4ff-83a7eff82a20","block_type":"box","text":"in running the operations of the Fund.","page_number":9,"box":{"x":70,"y":702,"width":266,"height":12}},{"id":"b8d2d745-519d-4e28-826a-975a94029dbf","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":9,"box":{"x":102,"y":725,"width":785,"height":11}},{"id":"94cd0619-93e7-4252-8dbc-51c25cdf6d26","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":9,"box":{"x":69,"y":740,"width":828,"height":11}},{"id":"d7e8dc44-d3c7-4c76-9c1c-72643e062ea1","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":9,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"37586f37-1074-4479-9bc4-4f44dbe45bef","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":9,"box":{"x":68,"y":770,"width":820,"height":12}},{"id":"7f3e4a04-29c5-4175-9efa-7a3bd4304379","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":9,"box":{"x":70,"y":785,"width":811,"height":12}},{"id":"859781d2-ac29-4971-a7b0-e2adc2313c9c","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":9,"box":{"x":70,"y":801,"width":767,"height":11}},{"id":"01a7be36-6a92-424e-a250-98906c55a1d7","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":9,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"46b1eac9-343a-416d-98ff-1f0a1a3a2435","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":9,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"005e1910-bd89-41a0-8c73-d7201b1577dc","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":9,"box":{"x":69,"y":846,"width":840,"height":11}},{"id":"35e7a85a-ee11-41f1-baba-65df1be2fafd","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":9,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"cb276519-5054-4db0-a5e6-c01761d7451f","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":9,"box":{"x":69,"y":876,"width":817,"height":11}},{"id":"70f841a7-c786-454c-890b-4aa381cb250e","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":9,"box":{"x":69,"y":891,"width":812,"height":11}},{"id":"a07785db-60b7-45d2-a0e3-2e123d22428d","block_type":"box","text":"testing of the Corporation’s compliance program and reports to the Board regarding compliance matters for the Fund","page_number":9,"box":{"x":68,"y":906,"width":834,"height":12}},{"id":"72a7b251-f92a-4e18-9c62-22f4536333a8","block_type":"box","text":"I-7","page_number":9,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"2e1425ab-66eb-433a-8acb-0af94951513d","block_type":"box","text":"NM0926U-5975843-9/228","page_number":9,"box":{"x":764,"y":970,"width":140,"height":7}},{"id":"026fc306-a2b1-462c-a4b0-55598193a67f","block_type":"box","text":"and its service providers. The Independent Directors have engaged independent legal counsel to assist them in","page_number":10,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"bbddbc41-6303-4061-b9ad-f3d5f077fd2c","block_type":"box","text":"performing their oversight responsibilities.","page_number":10,"box":{"x":70,"y":60,"width":299,"height":11}},{"id":"61642484-641c-4c8b-953b-ff701f1c447a","block_type":"box","text":"Audit Committee.","page_number":10,"box":{"x":101,"y":83,"width":122,"height":8}},{"id":"ae433950-175c-4efd-a9e9-a0ae13a14186","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":10,"box":{"x":229,"y":82,"width":673,"height":12}},{"id":"b5f5dcf2-f576-4b9d-a7a5-452518cf8369","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":10,"box":{"x":68,"y":98,"width":834,"height":11}},{"id":"2edb0fd9-8d00-43fe-959f-7582e35e9161","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":10,"box":{"x":68,"y":113,"width":820,"height":11}},{"id":"7ac969d2-efbe-492a-9e69-4579577f3968","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":10,"box":{"x":68,"y":128,"width":823,"height":11}},{"id":"d3f44df5-dafb-47f8-858e-81116ca4e782","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":143,"width":830,"height":11}},{"id":"549d4acd-8bf5-4506-b9e7-5e4e1e985505","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":10,"box":{"x":70,"y":158,"width":825,"height":11}},{"id":"8d5170cd-8ca8-44d7-89bd-14780fcc4e56","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":10,"box":{"x":70,"y":173,"width":807,"height":11}},{"id":"5724b257-d34c-4b59-97a6-4f20356e1183","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":10,"box":{"x":68,"y":188,"width":781,"height":11}},{"id":"facd5d3d-4f42-4da3-b7c9-78d23cf921d3","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":10,"box":{"x":69,"y":204,"width":834,"height":11}},{"id":"f2b6e131-c430-4656-8c51-9aca5741e740","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":10,"box":{"x":69,"y":218,"width":838,"height":12}},{"id":"5dd17f2d-4701-4688-8348-abe676ae7f39","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":234,"width":825,"height":11}},{"id":"15768e04-188f-47f4-a437-c7564292c7f0","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":10,"box":{"x":70,"y":249,"width":809,"height":11}},{"id":"68403f53-c27a-4a0a-a95d-f5dcb330eb9e","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":10,"box":{"x":70,"y":264,"width":815,"height":11}},{"id":"9be43e5e-4a43-4f28-8a58-f09b2da051ef","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":10,"box":{"x":69,"y":279,"width":774,"height":11}},{"id":"b0c3415a-f3af-4101-a0fa-4345346a7615","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":10,"box":{"x":69,"y":294,"width":815,"height":11}},{"id":"e3ef0f1f-8852-435d-884a-851b1488fe59","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":10,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"69837321-cfba-4b4f-adae-cf4e0d6e1565","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":10,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"0507a743-95af-4ad9-8087-68514d8dae88","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":10,"box":{"x":70,"y":339,"width":574,"height":12}},{"id":"81c20501-8a20-4a1e-90ea-eed0b6922ba1","block_type":"box","text":"Governance and Nominating Committee.","page_number":10,"box":{"x":102,"y":362,"width":286,"height":11}},{"id":"754d32bb-a1e5-49c7-a041-0ad2d92d5497","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":10,"box":{"x":394,"y":362,"width":464,"height":11}},{"id":"91bdeb6a-1db9-432e-99ee-90a88e3c82bd","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":10,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"82724cbe-7b09-4cbb-bf9a-38f6142d7548","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":10,"box":{"x":70,"y":392,"width":786,"height":12}},{"id":"3b7efeca-bdcc-433d-9268-664292a64d26","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Corporation","page_number":10,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"f1e0a685-00bc-4b3d-bd29-cae65a9c1f2a","block_type":"box","text":"and recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise","page_number":10,"box":{"x":69,"y":423,"width":835,"height":11}},{"id":"ad53b539-abe1-4719-a971-1e3f138c8066","block_type":"box","text":"the Board with respect to Board composition, procedures and committees (other than the Audit Committee);","page_number":10,"box":{"x":68,"y":438,"width":772,"height":11}},{"id":"2ddf3b07-8d32-448a-8631-e6c63fcb7d2c","block_type":"box","text":"(3) oversee periodic self-assessments of the Board and committees of the Board (other than the Audit Committee);","page_number":10,"box":{"x":69,"y":453,"width":820,"height":11}},{"id":"000a3b28-43b9-49bf-840f-a106aa3710ae","block_type":"box","text":"(4) review and make recommendations regarding Independent Director compensation; (5) monitor corporate","page_number":10,"box":{"x":69,"y":468,"width":768,"height":11}},{"id":"9dd454cb-c45b-40da-a635-e70133b064da","block_type":"box","text":"governance matters and develop appropriate recommendations to the Board; (6) act as the administrative committee","page_number":10,"box":{"x":68,"y":483,"width":837,"height":11}},{"id":"cd12452a-88f2-432c-bbff-c1f3a987c8e2","block_type":"box","text":"with respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee)","page_number":10,"box":{"x":68,"y":498,"width":827,"height":11}},{"id":"8bcf690d-40d3-432c-b68f-692f8b053bc9","block_type":"box","text":"and codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities","page_number":10,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"919e9dfa-91a0-478d-9887-31334ae27879","block_type":"box","text":"as may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":10,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"8c32657e-b1d2-4bb1-8b93-cb30d57f956b","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the","page_number":10,"box":{"x":69,"y":543,"width":744,"height":12}},{"id":"62240e52-55fe-490f-a4ec-e6e1217c97ef","block_type":"box","text":"Corporation’s Amended and Restated Bylaws, shareholders must follow certain procedures to nominate a person for","page_number":10,"box":{"x":69,"y":559,"width":832,"height":11}},{"id":"5f64064c-13b4-4875-8656-c3af0475638f","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":10,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"dcd540a3-7fec-477e-ad81-8477d6b8ecd0","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Corporation must be delivered to or mailed and","page_number":10,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"c20a3684-35d6-4fff-84a1-abf7422960b6","block_type":"box","text":"received at the principal executive offices of the Corporation not later than the close of business on the fifth day","page_number":10,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"c50e89fc-eb7b-4d73-830a-e1108d42901b","block_type":"box","text":"following the day on which notice of the date of the meeting was mailed or public disclosure of the date of the","page_number":10,"box":{"x":68,"y":619,"width":784,"height":11}},{"id":"01e3e9ae-a144-45d8-b2cb-194ff2e5a114","block_type":"box","text":"meeting was made, whichever first occurs. The Corporation’s Bylaws provide that notice of a proposed nomination","page_number":10,"box":{"x":69,"y":634,"width":813,"height":12}},{"id":"5b8cd33d-8a5c-4ec2-beb1-80917be99112","block_type":"box","text":"must include certain information about the shareholder and the nominee, as well as certain other information,","page_number":10,"box":{"x":69,"y":649,"width":787,"height":11}},{"id":"9d3f9dc8-3171-459a-88bb-7259ca185de1","block_type":"box","text":"including a written consent of the proposed nominee to serve if elected. Reference is made to the Corporation’s","page_number":10,"box":{"x":70,"y":664,"width":799,"height":12}},{"id":"7770ab15-aadb-4612-89d7-6a27b9715191","block_type":"box","text":"Bylaws for more details. The Board has adopted a written charter for the Governance Committee. During the fiscal","page_number":10,"box":{"x":70,"y":680,"width":812,"height":11}},{"id":"7194a2ba-5545-47c8-9c43-7f19569e8205","block_type":"box","text":"year ended May 31, 2026, the Governance Committee met ten times.","page_number":10,"box":{"x":68,"y":695,"width":498,"height":11}},{"id":"2fab176d-4f84-408c-911c-a5398b11736c","block_type":"box","text":"Compliance Committee.","page_number":10,"box":{"x":102,"y":718,"width":168,"height":10}},{"id":"cb6487fc-7132-4359-8138-12d3f367e9fa","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":10,"box":{"x":276,"y":717,"width":629,"height":11}},{"id":"f7479380-a3dd-4465-8e1e-4d823fe6b864","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":10,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"702b4133-4eaa-410e-900a-eb4b27c45a0f","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":10,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"a5871629-a708-46fe-9fbf-77d8264a91ad","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Corporation, the fund-related","page_number":10,"box":{"x":69,"y":763,"width":794,"height":11}},{"id":"2fadb320-711c-458b-a251-1e1232be1aef","block_type":"box","text":"activities of BlackRock and any sub-adviser and the Corporation’s third-party service providers. The Compliance","page_number":10,"box":{"x":69,"y":778,"width":793,"height":11}},{"id":"50c9c883-c7f5-450f-abe3-adf570f32b38","block_type":"box","text":"Committee’s responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the","page_number":10,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"06ba0972-3a02-48de-b274-4310bb0e9ee7","block_type":"box","text":"Corporation and its service providers and recommend changes or additions to such policies and procedures;","page_number":10,"box":{"x":69,"y":808,"width":773,"height":11}},{"id":"cb40a5c2-7db8-4fa7-85db-1f8ca59c20cb","block_type":"box","text":"(2) review information on and, where appropriate, recommend policies concerning the Corporation’s compliance with","page_number":10,"box":{"x":69,"y":823,"width":829,"height":12}},{"id":"f0835a46-3553-4428-a1c7-02927326d08b","block_type":"box","text":"applicable law; (3) review reports from, oversee the annual performance review of, and make certain","page_number":10,"box":{"x":69,"y":838,"width":719,"height":11}},{"id":"a923fcde-510f-426b-9791-eff1c6681383","block_type":"box","text":"recommendations and determinations regarding the Corporation’s Chief Compliance Officer (the “CCO”), including","page_number":10,"box":{"x":69,"y":853,"width":814,"height":12}},{"id":"4c5339ea-5ef6-4578-a4fa-99ed11db113a","block_type":"box","text":"determining the amount and structure of the CCO’s compensation and recommending such amount and structure to","page_number":10,"box":{"x":69,"y":869,"width":829,"height":11}},{"id":"072e18ab-c289-45ce-8573-7afd671237d6","block_type":"box","text":"the full Board for approval and ratification; and (4) undertake such other duties and responsibilities as may from time","page_number":10,"box":{"x":68,"y":884,"width":839,"height":11}},{"id":"fafd48d2-b303-45a8-b3db-2a6d99a3b58c","block_type":"box","text":"I-8","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"d1006e64-3e57-49e1-a1c9-7b3e54a7bf7c","block_type":"box","text":"NM0926U-5975843-10/228","page_number":10,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4a1a3f35-35ae-4c25-8c2a-7bf320a93f9f","block_type":"box","text":"to time be delegated by the Board to the Compliance Committee. The Board has adopted a written charter for the","page_number":11,"box":{"x":68,"y":45,"width":810,"height":11}},{"id":"53e4ce13-1251-4876-afe7-1f882ca6bf3e","block_type":"box","text":"Compliance Committee. During the fiscal year ended May 31, 2026, the Compliance Committee met four times.","page_number":11,"box":{"x":69,"y":60,"width":798,"height":11}},{"id":"fcf1d75a-e444-4a24-b7a7-2f6b542994d2","block_type":"box","text":"Per formance Oversight Committee.","page_number":11,"box":{"x":102,"y":82,"width":248,"height":12}},{"id":"7450d702-e6bb-4df3-840c-1fb0e7201933","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":11,"box":{"x":356,"y":82,"width":531,"height":12}},{"id":"40534f66-d0d9-416b-99c8-f6aeca9d8d04","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":11,"box":{"x":69,"y":98,"width":829,"height":11}},{"id":"54f02240-ef84-4b86-bfa1-b32718dc73ae","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is","page_number":11,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"e9afe3fe-bf5d-4f8c-bbf4-9dfcefdb4538","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":11,"box":{"x":68,"y":128,"width":832,"height":11}},{"id":"c13fe7c5-8eb2-454d-b07d-99e0dbe65bad","block_type":"box","text":"upon performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":11,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"703efd1d-84c8-4fd8-ab6a-3dd04f67c464","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":11,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"15e7d199-ed91-4343-9655-dc5b48efccfc","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":11,"box":{"x":70,"y":173,"width":829,"height":11}},{"id":"fceeb8e4-9302-4058-a71c-667e7b59006b","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":11,"box":{"x":69,"y":188,"width":816,"height":11}},{"id":"cf2aa95f-f8cc-47c3-bea3-de92f4a6f6c9","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":11,"box":{"x":69,"y":204,"width":803,"height":10}},{"id":"cd1d839e-4b8e-4786-8939-f2e4724526d1","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":11,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"676a2dd0-88f2-4681-bdab-81d392a59c35","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":11,"box":{"x":68,"y":234,"width":811,"height":11}},{"id":"fe4317c4-c5e8-48e9-ae98-c4a4f0b4279b","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":11,"box":{"x":69,"y":249,"width":757,"height":11}},{"id":"a19e6d1b-8e3c-4922-ae87-6bae4b113d88","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":11,"box":{"x":70,"y":264,"width":835,"height":11}},{"id":"60d25a5c-454c-49e3-8d4a-0510c977a4fd","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":11,"box":{"x":68,"y":279,"width":800,"height":11}},{"id":"440d8f42-9b99-4baa-a2e0-20f48113cd50","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":11,"box":{"x":69,"y":294,"width":780,"height":11}},{"id":"fcf4baf2-aacb-4e6d-8ae3-fa01bd50cb1c","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":11,"box":{"x":69,"y":309,"width":838,"height":11}},{"id":"46bd3e4a-e226-4c08-a67b-7eb19383af2b","block_type":"box","text":"ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":11,"box":{"x":69,"y":324,"width":544,"height":12}},{"id":"c8b1c84f-27e3-44a1-9d4c-a170219fe8a9","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":11,"box":{"x":101,"y":347,"width":186,"height":11}},{"id":"63a4e0e0-2b76-4cbf-ab0d-d9e69e08b25d","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":11,"box":{"x":293,"y":347,"width":598,"height":11}},{"id":"15de326b-c15c-434c-99a4-61a7475bc5a3","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":11,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"27e7a534-b930-42cb-898f-30bbfc1632ea","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":11,"box":{"x":69,"y":377,"width":796,"height":11}},{"id":"05c20252-17fc-45c1-bca6-f79e2ad2b01a","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":11,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"65951359-1a48-4938-9999-452b9598d28d","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":11,"box":{"x":69,"y":407,"width":813,"height":12}},{"id":"f805dccd-bb08-4b52-8d35-3863f8f66106","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":11,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"4527b4fd-c4a6-42c7-ac0a-4bbad38ae59c","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":11,"box":{"x":68,"y":438,"width":575,"height":11}},{"id":"0542a09d-bff5-4ba5-a014-005bb1ac87a3","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":11,"box":{"x":101,"y":460,"width":771,"height":12}},{"id":"c72c21fc-0cb3-42c4-9db2-143a6c430840","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":11,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"d46e41f6-2271-428a-a6ef-5c7aedcbe76c","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":11,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"6df9f3e6-db14-4450-a4c2-e3ada87d10ab","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":11,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"d54a4823-7539-461e-ad58-d0b01c1017a3","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":11,"box":{"x":70,"y":521,"width":811,"height":11}},{"id":"58e236ab-3008-436c-942e-0f826bd1530a","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":11,"box":{"x":70,"y":536,"width":787,"height":11}},{"id":"d3372bb9-196c-461f-8646-d6179ace4feb","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":11,"box":{"x":69,"y":551,"width":807,"height":11}},{"id":"29eb0554-c806-4eec-9756-2f88325f359c","block_type":"box","text":"which allow the Board to operate effectively in governing the Corporation and protecting the interests of shareholders.","page_number":11,"box":{"x":68,"y":566,"width":840,"height":11}},{"id":"dbbef78f-08f1-4b2f-9e4c-83346d7220f8","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":11,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"677e292d-bc19-40f4-8437-aaeef418123d","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":11,"box":{"x":69,"y":596,"width":823,"height":12}},{"id":"af4007ee-6b16-4de3-8186-02e57f2c7d51","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":11,"box":{"x":69,"y":612,"width":771,"height":11}},{"id":"aa6e75cf-b410-4eb2-86f4-e9aa5a1d75de","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":11,"box":{"x":69,"y":627,"width":475,"height":11}},{"id":"e4f475ee-ab08-4822-a300-af216e3f6845","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":11,"box":{"x":102,"y":649,"width":794,"height":12}},{"id":"bdefd545-fdca-4707-b796-c375af3afa8c","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":11,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"8d75e4e9-41da-455f-ace9-a46a582ea263","block_type":"box","text":"board member of the Corporation and the other funds in the BlackRock Fund Complexes (and any predecessor","page_number":11,"box":{"x":69,"y":680,"width":787,"height":11}},{"id":"aaf0fe44-0a8f-4604-ad55-62dc733d98c4","block_type":"box","text":"funds), other investment funds, public companies, non-profit entities or other organizations; ongoing commitment to","page_number":11,"box":{"x":68,"y":695,"width":827,"height":11}},{"id":"de687e4d-46fb-4ccb-ba38-b720caec4a5d","block_type":"box","text":"and participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":11,"box":{"x":69,"y":710,"width":717,"height":11}},{"id":"e4392d6a-8251-4240-aa2e-0f30957dd0a2","block_type":"box","text":"ad hoc","page_number":11,"box":{"x":793,"y":710,"width":47,"height":9}},{"id":"75bebbfc-7577-46f6-b515-9d5d8280183a","block_type":"box","text":"committees throughout the years; or other relevant life experiences.","page_number":11,"box":{"x":69,"y":725,"width":483,"height":11}},{"id":"3e015893-aae8-4005-980a-a10e1b76fa71","block_type":"box","text":"I-9","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"940e623f-89ca-43b7-923b-feec01853f93","block_type":"box","text":"NM0926U-5975843-11/228","page_number":11,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8a60f2c8-fab0-4fc3-9c70-9981063ce259","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":12,"box":{"x":101,"y":45,"width":754,"height":11}},{"id":"79bb9ee0-6002-42a7-833b-0ca58c255b13","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":12,"box":{"x":69,"y":60,"width":494,"height":11}},{"id":"13947c9b-26ae-46ca-a0de-2b7e9cd32d1b","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":12,"box":{"x":69,"y":88,"width":408,"height":9}},{"id":"8f7742b0-1891-485b-a533-be2a52b5a3e6","block_type":"box","text":"Independent Directors","page_number":12,"box":{"x":70,"y":105,"width":156,"height":10}},{"id":"f0252779-1e94-4e5e-bcd6-9dc0aaba2342","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":12,"box":{"x":69,"y":120,"width":781,"height":11}},{"id":"6d5cc531-6c23-4088-8c3f-eb5839a30b5d","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":12,"box":{"x":265,"y":135,"width":604,"height":11}},{"id":"23fcae94-484a-4da8-adc5-e0f2239ef155","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":12,"box":{"x":265,"y":150,"width":623,"height":11}},{"id":"1de89416-177d-46a6-b7a8-446d4547ed81","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":12,"box":{"x":265,"y":165,"width":637,"height":11}},{"id":"87f744ca-a3ae-49eb-b5eb-7dd9c0a36be1","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":12,"box":{"x":265,"y":180,"width":631,"height":11}},{"id":"c335eaea-ca73-4e04-9e5a-9b9b919f5d62","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":12,"box":{"x":264,"y":195,"width":626,"height":11}},{"id":"565ec898-5136-4b99-843e-b7f63475cd51","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":12,"box":{"x":265,"y":210,"width":639,"height":11}},{"id":"4a11a157-d1b9-4cd1-a5e0-99db0f22f098","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":12,"box":{"x":264,"y":226,"width":637,"height":11}},{"id":"ef09b7d6-1460-4d79-9114-16828bf7a3a7","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":12,"box":{"x":265,"y":241,"width":586,"height":11}},{"id":"49a27df0-698b-4280-bbe1-6a3b82f58cc5","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":12,"box":{"x":265,"y":256,"width":640,"height":11}},{"id":"6c929496-0abc-4223-8dd1-be5d9d7a2d57","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":12,"box":{"x":265,"y":271,"width":389,"height":11}},{"id":"7054e07c-9918-4c1a-998a-89e7e9d8893a","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":12,"box":{"x":69,"y":293,"width":806,"height":12}},{"id":"892639ee-3854-4f31-a868-5fa9a499d134","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":12,"box":{"x":265,"y":309,"width":604,"height":11}},{"id":"05d278bc-2aca-4fcc-bb9e-e96ac5c9213b","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":12,"box":{"x":265,"y":324,"width":632,"height":11}},{"id":"a9138008-92ad-4331-9a09-21bb03e8b79c","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":12,"box":{"x":265,"y":339,"width":562,"height":9}},{"id":"26a00bfd-39ad-4fce-b008-abd2e512ed17","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":12,"box":{"x":265,"y":354,"width":616,"height":10}},{"id":"2de8236e-957f-487c-a67b-e25ae998e0b3","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":12,"box":{"x":264,"y":369,"width":591,"height":11}},{"id":"a199b778-ab93-43b1-8d07-8a5d98efd24d","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":12,"box":{"x":265,"y":384,"width":641,"height":11}},{"id":"0f20f121-1325-4eb0-91d3-06a623cec050","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":12,"box":{"x":264,"y":399,"width":638,"height":12}},{"id":"47778aca-9e8a-4979-837f-e6113ab00a38","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":12,"box":{"x":265,"y":414,"width":584,"height":12}},{"id":"d761bc0b-dd8a-4d65-9a1d-983b709e6530","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":12,"box":{"x":265,"y":429,"width":630,"height":12}},{"id":"b5876ce5-965a-485c-a9fb-a5dd5b3a612b","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":12,"box":{"x":265,"y":445,"width":634,"height":11}},{"id":"d44aaa9f-155d-4630-82c7-7bd70d11e762","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":12,"box":{"x":265,"y":460,"width":599,"height":11}},{"id":"aca34c75-1177-4d8e-a99f-889bb351e20a","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":12,"box":{"x":265,"y":475,"width":407,"height":11}},{"id":"e899e7ed-451b-472a-aacd-051d130e390a","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":12,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"52b37445-5c87-4d3d-bbad-072d6a4b734c","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":12,"box":{"x":265,"y":513,"width":638,"height":11}},{"id":"9cd63c67-f3ca-4f3b-8c3b-9274a029ca74","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":12,"box":{"x":265,"y":528,"width":642,"height":11}},{"id":"b0e89a31-9832-4b63-91f2-fe60d71246b2","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":12,"box":{"x":265,"y":542,"width":601,"height":12}},{"id":"0315a82a-f40e-4179-a63d-cdcccd9e4d4b","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":12,"box":{"x":265,"y":558,"width":595,"height":11}},{"id":"50c8ca95-d32e-4639-83bd-82ac28c7b302","block_type":"box","text":"perspective on the markets and the economy.","page_number":12,"box":{"x":265,"y":573,"width":323,"height":11}},{"id":"296275a2-f259-4947-86a8-e8d3d737824c","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":12,"box":{"x":70,"y":596,"width":798,"height":11}},{"id":"0e027cfd-94f1-450b-a337-a7353a531e13","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":12,"box":{"x":265,"y":611,"width":631,"height":11}},{"id":"36f873d5-ba93-4f23-89c7-73c0bdf4f8dd","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":12,"box":{"x":265,"y":626,"width":633,"height":11}},{"id":"66e623fa-a974-447d-99c5-931769181c65","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":12,"box":{"x":265,"y":641,"width":628,"height":11}},{"id":"0bfe9e60-e62f-487f-8070-3a5ca2140d40","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. 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Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":13,"box":{"x":70,"y":65,"width":806,"height":12}},{"id":"48a2306a-b912-477f-a623-2583c807cb31","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":13,"box":{"x":264,"y":81,"width":584,"height":11}},{"id":"79c39bd8-ef9d-4466-a447-2c4afe6b262b","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":13,"box":{"x":265,"y":96,"width":622,"height":11}},{"id":"ca69093d-a371-476a-ba67-6a89a41cebe4","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":13,"box":{"x":265,"y":111,"width":638,"height":11}},{"id":"bf34b867-0dc7-4bde-a31d-2f47c23dbd08","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":13,"box":{"x":265,"y":126,"width":570,"height":11}},{"id":"04ac9008-4239-41fb-a0c9-086130b361ca","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":13,"box":{"x":265,"y":141,"width":642,"height":11}},{"id":"8f8ade47-cbda-4df3-871a-60b8c7d30c25","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":13,"box":{"x":265,"y":156,"width":626,"height":11}},{"id":"4c618cbc-665c-4d97-aa68-c277a63fce87","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":13,"box":{"x":265,"y":171,"width":630,"height":12}},{"id":"40146d35-162e-4e69-a254-32b710c38b11","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":13,"box":{"x":265,"y":186,"width":602,"height":12}},{"id":"fcbdf9e8-d9ef-408b-bf0e-f45c5a976b94","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":13,"box":{"x":264,"y":201,"width":643,"height":12}},{"id":"9ddc59aa-8dcd-4ad6-ac3b-c9dc8f2b1b40","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":13,"box":{"x":264,"y":217,"width":639,"height":11}},{"id":"49f35bfd-8b28-4e3d-b7e4-4af0e542f412","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":13,"box":{"x":264,"y":232,"width":641,"height":11}},{"id":"196f7b86-60b4-4b10-a65c-57ec6ebef816","block_type":"box","text":"applicable Commission rules.","page_number":13,"box":{"x":265,"y":247,"width":208,"height":11}},{"id":"0981bf47-aa6d-4921-a410-6d5662dbce3d","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":13,"box":{"x":69,"y":269,"width":769,"height":12}},{"id":"f0ca2a69-de01-4d98-a862-134728dd7d2c","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":13,"box":{"x":265,"y":285,"width":621,"height":11}},{"id":"d45f7b15-a5ca-4d9f-89b2-ebff6f07d51e","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":13,"box":{"x":265,"y":300,"width":599,"height":11}},{"id":"771500f7-4af9-4561-a028-866c72ee1851","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":13,"box":{"x":265,"y":315,"width":641,"height":11}},{"id":"29d0508e-9a12-4150-8553-57ede8bf2e9d","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":13,"box":{"x":264,"y":330,"width":602,"height":11}},{"id":"50ff1bd4-82db-45cd-8c8b-f6cfba390e9d","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":13,"box":{"x":264,"y":345,"width":617,"height":11}},{"id":"a5d309ed-a6fb-4949-b73a-b754da051f5b","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":13,"box":{"x":265,"y":360,"width":629,"height":12}},{"id":"532c95a9-f845-423f-a1de-bf43f3816373","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":13,"box":{"x":264,"y":375,"width":628,"height":11}},{"id":"2ff93113-7e22-422a-be55-4cfe7a180cee","block_type":"box","text":"articles and books on these topics.","page_number":13,"box":{"x":265,"y":391,"width":251,"height":10}},{"id":"2a1272f0-25da-4e65-a20b-5245bb6cd3c1","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":13,"box":{"x":70,"y":413,"width":764,"height":11}},{"id":"03e6e909-f81f-4336-acfd-b4f45f29e890","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":13,"box":{"x":265,"y":428,"width":642,"height":12}},{"id":"4854adfd-abf8-41f7-9d00-36e258df1b94","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":13,"box":{"x":264,"y":443,"width":593,"height":12}},{"id":"54c4ae75-a4fb-4c64-98d2-d90723c7b9c2","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":13,"box":{"x":265,"y":458,"width":603,"height":12}},{"id":"b4c6d0d8-dc2e-4090-b0ac-3d11dbc95662","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":13,"box":{"x":265,"y":474,"width":629,"height":11}},{"id":"ddc610b8-0ebd-4354-9803-3272ea8dc833","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":13,"box":{"x":70,"y":496,"width":804,"height":11}},{"id":"d2f2fc0f-a588-4f76-ade8-698dd16f82cf","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":13,"box":{"x":265,"y":511,"width":552,"height":12}},{"id":"f98cdeba-abe3-4699-9a03-ffb3c9457cd9","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":13,"box":{"x":265,"y":526,"width":636,"height":12}},{"id":"bc0cac0e-0c73-4967-a642-6b272bcf3b60","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":13,"box":{"x":265,"y":542,"width":639,"height":11}},{"id":"8e0ef1d1-5ca2-4dab-90e6-43ba2a64a411","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":13,"box":{"x":265,"y":557,"width":576,"height":11}},{"id":"3d903ba1-9b51-449f-a92a-6c701e256110","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":13,"box":{"x":265,"y":572,"width":626,"height":11}},{"id":"b805cd46-7ee9-49ee-9d9c-fc6849e1e450","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":13,"box":{"x":265,"y":587,"width":592,"height":11}},{"id":"9ddb357d-b423-4431-a597-a3f58624d35d","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Arthur","page_number":13,"box":{"x":265,"y":602,"width":629,"height":11}},{"id":"b180daa4-9beb-40c0-9535-5070a28508aa","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":13,"box":{"x":265,"y":617,"width":626,"height":11}},{"id":"09c894c1-b21e-4f5a-8c75-26a18d48ca96","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":13,"box":{"x":264,"y":632,"width":608,"height":12}},{"id":"1cb298cc-011d-4dbe-a007-fa801b50ec45","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":13,"box":{"x":265,"y":648,"width":575,"height":11}},{"id":"8e87f386-3b0b-4e8b-a621-8a712a249595","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":13,"box":{"x":264,"y":663,"width":591,"height":11}},{"id":"5cb82895-7a17-4256-a7e4-5bbd759cdf8a","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":13,"box":{"x":265,"y":678,"width":627,"height":11}},{"id":"d6b37e3b-e23d-4723-bd9c-963a277f2379","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":13,"box":{"x":265,"y":693,"width":578,"height":11}},{"id":"3d8da8e7-35e7-473c-b39c-ed54be088197","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":13,"box":{"x":265,"y":708,"width":607,"height":11}},{"id":"0769d555-3105-4084-b905-01c05fc78772","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":13,"box":{"x":265,"y":723,"width":615,"height":11}},{"id":"f88281fe-41ba-4f1e-aa91-069d3a5009de","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":13,"box":{"x":265,"y":738,"width":638,"height":11}},{"id":"74718646-f531-41fb-920a-45caf183b1ad","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":13,"box":{"x":265,"y":753,"width":635,"height":12}},{"id":"c631ad22-c11c-491d-9ecd-0901e385a539","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":13,"box":{"x":265,"y":768,"width":642,"height":12}},{"id":"0116b792-2bdc-4480-9453-52e42c41c017","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":13,"box":{"x":265,"y":784,"width":627,"height":11}},{"id":"ad99c553-574b-46d8-932d-abfdb6422eee","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":13,"box":{"x":265,"y":799,"width":628,"height":11}},{"id":"34c5b449-6be2-4335-af47-10cb0ecffb71","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":13,"box":{"x":265,"y":814,"width":460,"height":11}},{"id":"ad547477-3370-400a-839b-3abdc5934233","block_type":"box","text":"I-11","page_number":13,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c0bd5c2a-0984-4015-b1eb-681116ecc9f4","block_type":"box","text":"NM0926U-5975843-13/228","page_number":13,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"82f4c290-358e-46f6-956b-90ad0653f4b4","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":14,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"d7d96a4e-9ade-469e-9f24-3ece2dbfba56","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":14,"box":{"x":70,"y":65,"width":818,"height":12}},{"id":"69fb3c0e-399a-42d7-a424-4c5d217fbfcb","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":14,"box":{"x":264,"y":81,"width":603,"height":11}},{"id":"daebafda-d741-4dae-b5cd-a932d1f67bf8","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":14,"box":{"x":265,"y":96,"width":606,"height":11}},{"id":"4e0224be-320a-47cc-a6d8-239169b87454","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":14,"box":{"x":265,"y":111,"width":608,"height":9}},{"id":"22e2a6d0-41ab-4a93-a77d-b7159ff3063a","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":14,"box":{"x":265,"y":126,"width":626,"height":11}},{"id":"2ae28ad6-a360-4ce4-aeec-b1db2cbd52ab","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":14,"box":{"x":265,"y":141,"width":591,"height":11}},{"id":"487e17ef-2ddb-450a-8a88-98579c4fe721","block_type":"box","text":"various private and non-profit boards.","page_number":14,"box":{"x":264,"y":156,"width":265,"height":11}},{"id":"09ca6a16-df45-450d-b5b5-ff838d78eb69","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":14,"box":{"x":70,"y":179,"width":833,"height":11}},{"id":"71bc896e-8220-4b57-9ad5-33e8e9aaebce","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":14,"box":{"x":265,"y":194,"width":638,"height":11}},{"id":"f549055b-b4fe-405a-9274-41ed8f88d011","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":14,"box":{"x":265,"y":209,"width":608,"height":11}},{"id":"2d10ff52-3d89-4e27-987c-4fd23c3091cc","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":14,"box":{"x":264,"y":224,"width":645,"height":11}},{"id":"fe3b2978-fc31-488b-80aa-11bd591736a6","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":14,"box":{"x":264,"y":239,"width":639,"height":9}},{"id":"a38dc3df-5e4e-4fc2-9ca2-8af0598cbdaa","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":14,"box":{"x":264,"y":254,"width":573,"height":12}},{"id":"6b703d9b-de02-4a15-aefc-4dec6f1edd7b","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":14,"box":{"x":265,"y":269,"width":625,"height":12}},{"id":"6d71bf97-e6c7-4fba-8dde-4b25baa8db25","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":14,"box":{"x":265,"y":285,"width":610,"height":11}},{"id":"d3423f7e-bc22-4c41-9871-41e80a1813dd","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":14,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"893b8d2a-6c7b-476d-b5bb-aeb021b09e59","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":14,"box":{"x":265,"y":315,"width":583,"height":11}},{"id":"05f6a63c-37c8-4553-94fe-dc263716a287","block_type":"box","text":"Directors prior to becoming an Independent Director.","page_number":14,"box":{"x":265,"y":330,"width":372,"height":11}},{"id":"55f19516-7c6c-4816-8843-e554aedc9e80","block_type":"box","text":"Kenneth L. Urish Kenneth L. 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Perlowski. . .","page_number":20,"box":{"x":78,"y":615,"width":149,"height":9}},{"id":"d1903835-78b7-4fb2-ac72-eee21428571b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None None None","page_number":20,"box":{"x":234,"y":615,"width":622,"height":9}},{"id":"78021851-6fc5-47f6-8476-952b132adb09","block_type":"box","text":"1","page_number":20,"box":{"x":69,"y":639,"width":3,"height":4}},{"id":"19a4603c-2fac-40ac-a764-ca4e911998f3","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on","page_number":20,"box":{"x":94,"y":639,"width":788,"height":9}},{"id":"5d8ee446-265d-4014-ba4f-5637fd65689b","block_type":"box","text":"page I-13.","page_number":20,"box":{"x":94,"y":649,"width":55,"height":9}},{"id":"bbe2dea7-fecb-4a68-8383-bd3d78f855dd","block_type":"box","text":"2","page_number":20,"box":{"x":69,"y":662,"width":3,"height":3}},{"id":"60d0443f-9a08-4418-b54b-46e08f456189","block_type":"box","text":"Compensation includes $314 earned as a consultant to the Independent Directors for the period April 1, 2026 to July 1, 2026.","page_number":20,"box":{"x":93,"y":661,"width":726,"height":10}},{"id":"42a9a90f-081c-487d-acb7-b9177b6b78a0","block_type":"box","text":"3","page_number":20,"box":{"x":69,"y":675,"width":3,"height":3}},{"id":"405ecb74-2d77-4443-9681-f6d16daceff9","block_type":"box","text":"Chair of the Audit Committee.","page_number":20,"box":{"x":93,"y":674,"width":168,"height":8}},{"id":"d8e90e34-297a-41bf-83e6-945dc36e203d","block_type":"box","text":"4","page_number":20,"box":{"x":68,"y":687,"width":4,"height":4}},{"id":"056310a1-9aab-4ccc-838c-174cf7da3235","block_type":"box","text":"Chair of the Governance Committee.","page_number":20,"box":{"x":93,"y":687,"width":206,"height":7}},{"id":"2cb31cab-81d0-429a-8155-642d1b3e5f8f","block_type":"box","text":"5","page_number":20,"box":{"x":69,"y":700,"width":3,"height":3}},{"id":"3ace1a8b-ea5e-4410-8d07-392333adc6cb","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":20,"box":{"x":93,"y":700,"width":269,"height":9}},{"id":"7e38766f-7e98-4711-94b2-214f1dfa9a89","block_type":"box","text":"6","page_number":20,"box":{"x":69,"y":712,"width":3,"height":4}},{"id":"e9847729-cf1d-471d-8a79-0d9dcd447e4d","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":20,"box":{"x":93,"y":712,"width":352,"height":9}},{"id":"d0e29dea-a41e-447c-bb34-e400c03dbdaa","block_type":"box","text":"7","page_number":20,"box":{"x":69,"y":725,"width":3,"height":3}},{"id":"62a10c60-3b05-497a-b485-01566c8dc5c7","block_type":"box","text":"Chair of the Compliance Committee.","page_number":20,"box":{"x":93,"y":725,"width":205,"height":9}},{"id":"5d4d0063-d67c-477d-91f8-ec9f8d60e692","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":20,"box":{"x":69,"y":753,"width":432,"height":11}},{"id":"f4d65b60-b8a9-4f11-a0ff-1752b6da7b75","block_type":"box","text":"Management Agreement","page_number":20,"box":{"x":69,"y":784,"width":180,"height":11}},{"id":"8c876ee2-6612-4108-bdf8-270bec7f0c8b","block_type":"box","text":"The Corporation, on behalf of the Fund, has entered into a management agreement (the “Management","page_number":20,"box":{"x":101,"y":806,"width":732,"height":11}},{"id":"70d6733b-fabf-48b8-b25b-a1f712fe6819","block_type":"box","text":"Agreement”) with the Manager. Pursuant to the Management Agreement, the Manager is entitled to annual","page_number":20,"box":{"x":68,"y":822,"width":761,"height":11}},{"id":"96ae7287-012b-44c9-8f32-c0df6e13da73","block_type":"box","text":"management fees.","page_number":20,"box":{"x":69,"y":836,"width":131,"height":12}},{"id":"9f7b2517-f764-43a5-bd4d-b2db3a0fae92","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":20,"box":{"x":102,"y":859,"width":762,"height":11}},{"id":"e2a28c3b-adeb-4f4f-851f-fdfd6fc110d4","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":20,"box":{"x":69,"y":874,"width":799,"height":12}},{"id":"3c9de30c-5fc8-4113-b642-4cd3dfa5009c","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":20,"box":{"x":68,"y":889,"width":726,"height":12}},{"id":"0fbd7562-b025-46e1-b427-fd2ed660fdd9","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":20,"box":{"x":69,"y":904,"width":797,"height":12}},{"id":"68de1a7b-fc75-4dc4-bec2-244ed8301841","block_type":"box","text":"I-18","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"9fb92948-4a39-4253-95d8-08b5d06d9622","block_type":"box","text":"NM0926U-5975843-20/228","page_number":20,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"88d109c0-9aed-45e9-973c-067f89394b85","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":21,"box":{"x":69,"y":45,"width":789,"height":11}},{"id":"36ee7c35-3a75-4ed0-b1e7-5379ee853baf","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":21,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"48252131-1c48-43f3-af03-42e567d9188f","block_type":"box","text":"notice by a majority of the Independent Directors or by a vote of a majority of the outstanding voting securities of the","page_number":21,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"3bea4daa-f8f1-4525-a359-87f1d831d1c9","block_type":"box","text":"Fund.","page_number":21,"box":{"x":70,"y":90,"width":36,"height":9}},{"id":"264a873a-daa3-4764-b65f-2453efa42d48","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":21,"box":{"x":102,"y":113,"width":773,"height":11}},{"id":"9bd1ff7b-3983-4619-ae48-83b3ae3d7277","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":21,"box":{"x":68,"y":128,"width":787,"height":11}},{"id":"f33aad57-5173-4c5f-b273-d8037646a3ca","block_type":"box","text":"Expense/Stock Loan Fees, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as","page_number":21,"box":{"x":70,"y":143,"width":835,"height":11}},{"id":"23c4602c-b4ed-42a3-964c-31eacd6cee0c","block_type":"box","text":"defined in the Fund’s Prospectuses)) as a percentage of average daily net assets to 0.90% for Investor A Shares,","page_number":21,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"9b8be60c-4cee-446c-9071-977b230c9592","block_type":"box","text":"1.65% for Investor C Shares, 0.65% for Institutional Shares, 1.15% for Class R shares and 0.60% for Class K Shares","page_number":21,"box":{"x":70,"y":173,"width":836,"height":11}},{"id":"d5e24ae5-e7a3-4f7b-8313-1e5d195e8674","block_type":"box","text":"through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of the","page_number":21,"box":{"x":68,"y":188,"width":801,"height":12}},{"id":"7852e54d-a95f-4282-92bc-cae895541dd7","block_type":"box","text":"Independent Directors or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":21,"box":{"x":70,"y":203,"width":682,"height":12}},{"id":"2cecdaff-f7ff-4f1e-98f1-e95aa14fc979","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":21,"box":{"x":102,"y":226,"width":800,"height":11}},{"id":"8fb4d915-1eb4-4195-af7c-790bdb980841","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":21,"box":{"x":70,"y":241,"width":834,"height":11}},{"id":"87a36b55-5aca-4e0a-9829-b048143f86f3","block_type":"box","text":"to perform management services with respect to the Fund. In addition, the Manager may delegate certain of its","page_number":21,"box":{"x":68,"y":256,"width":796,"height":12}},{"id":"a29d33f9-9b63-4492-80cb-73e1b23fdb26","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":21,"box":{"x":70,"y":271,"width":779,"height":12}},{"id":"dc085391-dc7d-4859-b2fe-b43fa63d4fa5","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":21,"box":{"x":70,"y":287,"width":823,"height":11}},{"id":"2c47d22d-1b7b-4a8c-9cbc-c5263d280caa","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":21,"box":{"x":70,"y":302,"width":508,"height":11}},{"id":"e06ed193-dab6-4cac-833b-d86af2a07b7c","block_type":"box","text":"BlackRock entered into a sub-advisory agreement with BlackRock International Limited (“BIL”) with respect to the","page_number":21,"box":{"x":102,"y":325,"width":806,"height":11}},{"id":"b7b06438-d8d9-4cef-8150-403e5ad0c756","block_type":"box","text":"Fund pursuant to which BlackRock pays BIL for providing services with respect to that portion of the Fund for which it","page_number":21,"box":{"x":70,"y":339,"width":833,"height":12}},{"id":"cc1ac284-807b-4f5b-b7a1-b9f6cac2843a","block_type":"box","text":"acts as sub-adviser a monthly fee at an annual rate equal to a percentage of the management fee paid to BlackRock","page_number":21,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"13dfe6d2-ade6-4e65-90f2-5c2626378121","block_type":"box","text":"under the Management Agreement.","page_number":21,"box":{"x":69,"y":370,"width":250,"height":11}},{"id":"1b3cd92f-87a0-4c8a-8409-2f3b9a53931c","block_type":"box","text":"The table below sets forth information about the total management fees paid by the Fund to the Manager (which","page_number":21,"box":{"x":101,"y":392,"width":802,"height":12}},{"id":"2b880071-060e-4124-a61a-5f1719922dd3","block_type":"box","text":"includes amounts paid by the Manager to BIL) and any amounts waived for the periods shown:","page_number":21,"box":{"x":70,"y":407,"width":670,"height":12}},{"id":"112e3035-6ee2-4f9e-aebb-f76ebadedd97","block_type":"box","text":"Fees Paid","page_number":21,"box":{"x":582,"y":436,"width":56,"height":7}},{"id":"fd8b0f75-c7ff-4daf-9405-337816594b41","block_type":"box","text":"to the Manager","page_number":21,"box":{"x":565,"y":446,"width":90,"height":9}},{"id":"5ba2715b-3356-43db-947c-9ab6c7ff58c4","block_type":"box","text":"Fees Waived","page_number":21,"box":{"x":698,"y":436,"width":72,"height":7}},{"id":"061fe999-8369-4d1f-912e-f411781359e1","block_type":"box","text":"by the Manager","page_number":21,"box":{"x":689,"y":446,"width":91,"height":9}},{"id":"c1b4cc1d-a3a2-423b-9a8b-df970f8d0a8c","block_type":"box","text":"Fees Reimbursed","page_number":21,"box":{"x":810,"y":436,"width":99,"height":7}},{"id":"57a40d68-d350-4b11-99c2-ec62a7cf4ac5","block_type":"box","text":"by the Manager","page_number":21,"box":{"x":814,"y":446,"width":91,"height":9}},{"id":"07caf6b2-1ba1-452d-bdcb-4de5d05d4ba7","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,836,691 $487,402 $ 830,955","page_number":21,"box":{"x":70,"y":463,"width":833,"height":12}},{"id":"90ef07a5-fba0-4831-bbcf-843b53a17f7f","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,450,171 $282,272 $ 984,598","page_number":21,"box":{"x":70,"y":478,"width":833,"height":12}},{"id":"29377a3c-e399-42b9-8172-1b3f5fc829f7","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,113,752 $304,819 $1,392,331","page_number":21,"box":{"x":70,"y":493,"width":833,"height":12}},{"id":"7a28d0c8-4a32-4df0-9a10-da61545aa5fc","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":21,"box":{"x":69,"y":525,"width":335,"height":11}},{"id":"6eaec05f-aa30-4c6c-97dd-2969e10d2efe","block_type":"box","text":"Zeshan Azam and Wendy Agnew, CFA are the portfolio managers and are jointly and primarily responsible for the","page_number":21,"box":{"x":101,"y":548,"width":800,"height":11}},{"id":"0e379217-1110-4e66-9071-14e78797f556","block_type":"box","text":"day-to-day management of the Fund.","page_number":21,"box":{"x":69,"y":563,"width":256,"height":11}},{"id":"0591dae4-ec2a-403f-8049-9ce3b3cafe79","block_type":"box","text":"Other Funds and Accounts Managed","page_number":21,"box":{"x":70,"y":593,"width":257,"height":12}},{"id":"f3a5c123-ca1a-47c2-8940-15593c1ca24d","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":21,"box":{"x":101,"y":616,"width":806,"height":11}},{"id":"6ac49905-1f62-4b46-b4cc-735fa5880cbb","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of May 31, 2026.","page_number":21,"box":{"x":70,"y":631,"width":755,"height":11}},{"id":"f3454334-b6c8-4d0a-b1d3-552917bffbb5","block_type":"box","text":"Number of Other Accounts Managed","page_number":21,"box":{"x":378,"y":659,"width":211,"height":9}},{"id":"2d28d457-2fbf-452e-a98d-270ea1125573","block_type":"box","text":"and Assets by Account Type","page_number":21,"box":{"x":401,"y":670,"width":165,"height":8}},{"id":"06438d1a-2bca-4a24-b3a6-57d70e6a9adc","block_type":"box","text":"Number of Other Accounts and Assets","page_number":21,"box":{"x":656,"y":659,"width":222,"height":8}},{"id":"49b52665-6125-48d2-a4ea-8f35fd390646","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":21,"box":{"x":634,"y":669,"width":265,"height":9}},{"id":"2eb62c95-612b-4081-ae52-81fc3c5036e2","block_type":"box","text":"Name of Portfolio 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Pooled","page_number":21,"box":{"x":725,"y":692,"width":75,"height":7}},{"id":"abd2910c-baa9-48a3-92d9-5527cab3649d","block_type":"box","text":"Investment","page_number":21,"box":{"x":731,"y":702,"width":64,"height":7}},{"id":"279d406e-f611-4b47-89ff-24f6f50a24e6","block_type":"box","text":"Vehicles","page_number":21,"box":{"x":738,"y":712,"width":49,"height":7}},{"id":"0580ddd6-491d-4a75-bc30-44c404956da6","block_type":"box","text":"Other","page_number":21,"box":{"x":845,"y":702,"width":32,"height":7}},{"id":"ebaf9147-1ada-498c-9ff1-17379a45198c","block_type":"box","text":"Accounts","page_number":21,"box":{"x":833,"y":712,"width":55,"height":7}},{"id":"0efb6d4f-487c-4585-b220-7d2245f8a7e1","block_type":"box","text":"Wendy Agnew, CFA 7 6 2 0 0 1","page_number":21,"box":{"x":73,"y":726,"width":791,"height":9}},{"id":"f70b569f-83d3-4b53-8371-d94692b70f12","block_type":"box","text":"$3.15 Billion $2.77 Billion $1.62 Billion $0 $0 $1.54 Billion","page_number":21,"box":{"x":353,"y":738,"width":544,"height":9}},{"id":"bf2d81f2-d3c8-4983-900e-74e89c685f3d","block_type":"box","text":"Zeshan Azam 7 6 2 0 0 1","page_number":21,"box":{"x":73,"y":751,"width":791,"height":7}},{"id":"f9d710b7-aa74-4071-b185-ab6e00f411ec","block_type":"box","text":"$3.15 Billion $2.77 Billion $1.62 Billion $0 $0 $1.54 Billion","page_number":21,"box":{"x":353,"y":763,"width":544,"height":9}},{"id":"e938537e-ba3f-4a67-95d1-5055be84e515","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":21,"box":{"x":69,"y":798,"width":304,"height":11}},{"id":"83bb4d91-4e1f-4bb5-8bd1-6dcbcd8eaa11","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":21,"box":{"x":101,"y":821,"width":656,"height":11}},{"id":"0314dae1-7496-49c7-a8b0-4839f948a888","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":21,"box":{"x":102,"y":843,"width":774,"height":12}},{"id":"a7a0d639-1a11-41da-9c4c-65cc4e6c56c6","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":21,"box":{"x":70,"y":858,"width":837,"height":12}},{"id":"bc822dac-38fc-45a8-85ac-bd7c53f7ed67","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":21,"box":{"x":69,"y":874,"width":823,"height":11}},{"id":"e9537ba7-767a-4da1-845e-6f4239b5c051","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":21,"box":{"x":69,"y":889,"width":799,"height":11}},{"id":"94e26f4a-8945-4bff-9d06-285855b53100","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":21,"box":{"x":70,"y":904,"width":670,"height":11}},{"id":"b05512e8-f397-482f-8014-a20b4912d655","block_type":"box","text":"I-19","page_number":21,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"da0a99cb-3881-4eb1-aa2d-54888499d728","block_type":"box","text":"NM0926U-5975843-21/228","page_number":21,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"172c38ca-8f86-452e-b6ad-5c72647d2b4a","block_type":"box","text":"Base Compensation.","page_number":22,"box":{"x":102,"y":45,"width":148,"height":11}},{"id":"6fa82461-4ad9-49af-b4f1-2359ef2c735b","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":22,"box":{"x":257,"y":45,"width":640,"height":11}},{"id":"cebd8fcc-aaad-4b5d-b7a6-f3ae109198f6","block_type":"box","text":"firm.","page_number":22,"box":{"x":68,"y":60,"width":32,"height":9}},{"id":"bc68864c-4d1f-462e-8dd0-d745f412f9ae","block_type":"box","text":"Discretionary Incentive Compensation","page_number":22,"box":{"x":102,"y":83,"width":277,"height":11}},{"id":"1e766316-bc5d-4c18-ac53-20f733ffa069","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a","page_number":22,"box":{"x":102,"y":105,"width":763,"height":11}},{"id":"d1bcbc8e-263d-4f6e-a253-bfebd18cd718","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team","page_number":22,"box":{"x":68,"y":120,"width":832,"height":12}},{"id":"0a28bfb4-361c-4cb4-86f1-89237e51ec6e","block_type":"box","text":"revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":22,"box":{"x":69,"y":135,"width":815,"height":11}},{"id":"f8859be5-f65f-49af-805f-1e8b53b0e245","block_type":"box","text":"performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":22,"box":{"x":70,"y":150,"width":757,"height":11}},{"id":"05f35c25-9c46-49a6-9050-80fd1ba3b4e6","block_type":"box","text":"benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are","page_number":22,"box":{"x":69,"y":166,"width":814,"height":11}},{"id":"042da977-5a7f-4156-9b2b-b939ae92c4a0","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":22,"box":{"x":69,"y":181,"width":780,"height":11}},{"id":"f3768171-6859-4463-9a92-cdee59de7e1f","block_type":"box","text":"performance of the Fund and other accounts managed by each portfolio management team is compared and the","page_number":22,"box":{"x":70,"y":196,"width":802,"height":11}},{"id":"11d62742-e4f0-4a51-b31e-c0cefd6f2b24","block_type":"box","text":"period of time over which performance is evaluated. With respect to these portfolio managers, such benchmarks for","page_number":22,"box":{"x":70,"y":211,"width":828,"height":11}},{"id":"50e9f6ae-421c-4fb1-8ebe-9fb37bb4ad21","block_type":"box","text":"the Fund and other accounts are: MSCI All Country World ex US Index (Net TR); MSCI All Country World Index (Net","page_number":22,"box":{"x":68,"y":226,"width":810,"height":11}},{"id":"269b741f-70fe-4315-8ee6-3af9930ab40e","block_type":"box","text":"Total Return); MSCI ACWI HIGH DIVIDEND YIELD - NET USD; MSCI All Country World Net TR Index - in GBP.","page_number":22,"box":{"x":68,"y":241,"width":753,"height":11}},{"id":"af52c255-e0cf-4ba3-bf70-0d88b59d9dd9","block_type":"box","text":"A smaller element of portfolio manager discretionary compensation may include consideration of: financial","page_number":22,"box":{"x":101,"y":264,"width":759,"height":11}},{"id":"2f26c0a4-2e74-4bbe-bda8-be4f030bad70","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":22,"box":{"x":69,"y":279,"width":798,"height":11}},{"id":"ae7bf4cc-c5ce-4b9d-ab55-bdb81eab026f","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":22,"box":{"x":69,"y":294,"width":814,"height":11}},{"id":"9b84b573-dcd1-416c-80a9-56de07a470e9","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":22,"box":{"x":68,"y":309,"width":798,"height":11}},{"id":"373a62fc-19be-411b-a841-ec4aaf369a3a","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":22,"box":{"x":102,"y":332,"width":389,"height":11}},{"id":"4c84c213-63f6-41c3-95c5-667017e7d61e","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":22,"box":{"x":499,"y":332,"width":383,"height":11}},{"id":"7ed2a3af-c3df-4b2d-bb06-0e6da708a689","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":22,"box":{"x":70,"y":347,"width":815,"height":11}},{"id":"d495c6bc-fb4a-441b-a459-f53dca5c9295","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":22,"box":{"x":68,"y":362,"width":522,"height":11}},{"id":"1550ffc9-bcde-484d-a8fc-abd84f6f1326","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":22,"box":{"x":102,"y":385,"width":760,"height":11}},{"id":"3e4a56ef-60f9-40ab-8dcb-e2d5397a2f42","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":22,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"f756542e-4d72-4b8c-8f59-a0316919e882","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":22,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"804dddbd-27d4-4f7f-9c2a-d29ebb07cd4d","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":22,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"47cfc873-4faa-46f2-9965-43f486202b06","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":22,"box":{"x":68,"y":445,"width":839,"height":12}},{"id":"ec4e0b92-2371-4655-bdac-61e3d86f0e8c","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":22,"box":{"x":69,"y":460,"width":802,"height":12}},{"id":"bab2e9fb-7f83-4fe4-85f6-d12f39576269","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":22,"box":{"x":70,"y":475,"width":820,"height":12}},{"id":"7c95d904-c972-4f84-846c-46c2bd1c8420","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":22,"box":{"x":70,"y":491,"width":801,"height":11}},{"id":"3a07730d-9e09-4ad5-8503-8a9c7f8413c0","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":22,"box":{"x":70,"y":506,"width":831,"height":11}},{"id":"bc8ee310-6e06-4a19-9d73-403811d73563","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":22,"box":{"x":69,"y":521,"width":479,"height":11}},{"id":"a979449b-abdc-4af7-897b-da1c419b738b","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":22,"box":{"x":102,"y":543,"width":785,"height":12}},{"id":"f08e789f-7b0a-4b0d-a396-d5d8861020f5","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":22,"box":{"x":68,"y":559,"width":836,"height":11}},{"id":"7f0a183e-7362-43d1-a1f4-e2e4069a1a17","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":22,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"7c29af78-c410-4d18-943d-b26ca0952c4d","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":22,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"f9b3f4a9-f7e7-4970-ba05-30e3046a364a","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":22,"box":{"x":70,"y":604,"width":835,"height":11}},{"id":"53d7913a-641a-4c14-a145-80fa035e5531","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":22,"box":{"x":69,"y":619,"width":414,"height":11}},{"id":"87731d99-7d43-4f80-a16b-ab59005d3966","block_type":"box","text":"Other Compensation Benefits.","page_number":22,"box":{"x":101,"y":642,"width":218,"height":11}},{"id":"0f450921-734b-4f63-9a28-fc426711a277","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":22,"box":{"x":327,"y":642,"width":552,"height":11}},{"id":"74784cba-e659-45ac-b3d6-1b1f4a97fcdb","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":22,"box":{"x":69,"y":657,"width":582,"height":11}},{"id":"e368da7e-b376-4162-acc5-e2e2eaf5c945","block_type":"box","text":"Incentive Savings Plans","page_number":22,"box":{"x":102,"y":680,"width":167,"height":11}},{"id":"918ffa8c-49a4-45a3-966d-e0ee0c822f62","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":22,"box":{"x":274,"y":680,"width":614,"height":11}},{"id":"2d479e10-e4e9-4225-887d-2570a21ce066","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":22,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"b9e9f3b3-c75c-412a-9f8b-e855f242db04","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":22,"box":{"x":70,"y":710,"width":785,"height":11}},{"id":"79c8e21d-ff9d-43e2-84b7-725949586d0d","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":22,"box":{"x":69,"y":724,"width":830,"height":12}},{"id":"bdde08c3-b158-4426-abf9-b0dcbb1e256b","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":22,"box":{"x":69,"y":740,"width":799,"height":11}},{"id":"d7f22376-cefb-4a59-aa45-f7416cab4571","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":22,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"96c5ca2c-6445-4855-a267-d0adbc76beec","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":22,"box":{"x":69,"y":770,"width":798,"height":12}},{"id":"793d6089-c30c-4997-ad8a-512dc23a1732","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":22,"box":{"x":70,"y":785,"width":809,"height":12}},{"id":"ba0837ff-e5dd-4595-a386-f389dac8b1ee","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":22,"box":{"x":68,"y":801,"width":793,"height":11}},{"id":"0b5c2ba2-697e-47ef-902f-b2cd17086c0c","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":22,"box":{"x":70,"y":816,"width":832,"height":11}},{"id":"9739350e-79df-4b2c-8dd9-2e0750a9f788","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":22,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"399fbffb-f83d-416f-a922-15955fd48a44","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":22,"box":{"x":69,"y":845,"width":808,"height":12}},{"id":"104c80e8-c9fd-4467-bf87-a758c694bf9f","block_type":"box","text":"participate in these plans.","page_number":22,"box":{"x":70,"y":861,"width":185,"height":11}},{"id":"824839f1-bbbd-4730-a871-2d13dfb5b7b1","block_type":"box","text":"I-20","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e93d9ff2-1572-41bc-824e-b1bd1e87f465","block_type":"box","text":"NM0926U-5975843-22/228","page_number":22,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"84034e5a-cc45-4a4d-ac55-73a9a91c68e5","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":23,"box":{"x":69,"y":45,"width":268,"height":11}},{"id":"60eac824-df50-42d0-8ae2-009cd306aada","block_type":"box","text":"As of May 31, 2026, the dollar range of securities beneficially owned by the portfolio managers in the Fund is","page_number":23,"box":{"x":101,"y":67,"width":782,"height":12}},{"id":"48f27e3d-33cc-4b26-a669-8c67d4242598","block_type":"box","text":"shown below:","page_number":23,"box":{"x":69,"y":83,"width":94,"height":8}},{"id":"6ab29732-87f0-4202-a83d-f7be2e337689","block_type":"box","text":"Portfolio Manager","page_number":23,"box":{"x":69,"y":121,"width":105,"height":9}},{"id":"5d31c3e4-3708-45a8-8cdc-20387aa9c36f","block_type":"box","text":"Dollar Range of Equity","page_number":23,"box":{"x":759,"y":111,"width":129,"height":9}},{"id":"6aec9bef-7ebc-4f69-a59a-e5781d65a721","block_type":"box","text":"Securities Beneficially Owned","page_number":23,"box":{"x":736,"y":121,"width":173,"height":9}},{"id":"814f4c36-0a8c-4764-bf41-5a50048ead2b","block_type":"box","text":"Zeshan Azam","page_number":23,"box":{"x":69,"y":139,"width":94,"height":8}},{"id":"31f241cc-54a7-4e47-b06c-2087e0a25079","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":23,"box":{"x":166,"y":139,"width":675,"height":8}},{"id":"178abf41-3a39-4869-bf24-c16bb9fbddef","block_type":"box","text":"Wendy Agnew, CFA","page_number":23,"box":{"x":68,"y":154,"width":133,"height":11}},{"id":"3577114a-5b95-4d0d-a83a-a1611ed4db60","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":23,"box":{"x":206,"y":154,"width":635,"height":9}},{"id":"23ea6ca9-dcaa-4355-852e-a75d8c8916ef","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":23,"box":{"x":69,"y":185,"width":403,"height":11}},{"id":"a225dcd5-a5e9-4ea6-93be-76f484b5365f","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":23,"box":{"x":102,"y":208,"width":727,"height":11}},{"id":"2f8423cd-ff7d-44f2-8cb7-915c30cd02dd","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":23,"box":{"x":70,"y":223,"width":814,"height":11}},{"id":"30337d6f-3ce4-463f-bd32-f2ca91058b8b","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":23,"box":{"x":70,"y":238,"width":837,"height":11}},{"id":"f6f41aef-35c6-4023-983b-43d69fdb5339","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":23,"box":{"x":70,"y":253,"width":810,"height":11}},{"id":"71a34238-8a9f-472e-bc0e-30984d9ddf39","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":23,"box":{"x":69,"y":268,"width":782,"height":11}},{"id":"78a0eaa1-b408-47f1-a4f5-12d22ec62b11","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":23,"box":{"x":69,"y":284,"width":830,"height":11}},{"id":"4f0b690a-5d74-4329-a717-54b8f27caf3f","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":23,"box":{"x":69,"y":299,"width":828,"height":11}},{"id":"58c9eb7c-2df0-4a2a-b200-256917f85f0b","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":23,"box":{"x":68,"y":314,"width":834,"height":11}},{"id":"082b59a7-5e35-41e3-9963-7ff6a3322e88","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":23,"box":{"x":70,"y":329,"width":777,"height":11}},{"id":"a6c32913-c98a-4a98-a07a-3616697f77de","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":23,"box":{"x":70,"y":344,"width":821,"height":11}},{"id":"c83882bd-f09d-4b0b-93b9-c0d0ec7949ba","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":23,"box":{"x":69,"y":359,"width":819,"height":11}},{"id":"784139e2-c527-4003-86ae-db4aa952a854","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":23,"box":{"x":69,"y":374,"width":832,"height":11}},{"id":"88bb9289-d3aa-4157-9477-0f9cd4a2b474","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":23,"box":{"x":68,"y":389,"width":804,"height":11}},{"id":"858d6586-a69e-408d-8097-ede45a101121","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":23,"box":{"x":69,"y":404,"width":760,"height":12}},{"id":"93a1236a-d0cb-4be5-9dfb-3d6fd2ac60e4","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":23,"box":{"x":69,"y":419,"width":834,"height":12}},{"id":"620d1254-6e30-4c99-a2c3-34a67f4679b8","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":23,"box":{"x":69,"y":435,"width":836,"height":11}},{"id":"281120ff-accc-4b47-9e23-66dd58ce45cb","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":23,"box":{"x":69,"y":450,"width":822,"height":11}},{"id":"bee31ffc-4697-46d8-8eac-b8eb76af0a69","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":23,"box":{"x":70,"y":465,"width":835,"height":11}},{"id":"33f201d6-7e9f-42eb-963c-702165841079","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Mr. Azam and Ms. Agnew may be","page_number":23,"box":{"x":69,"y":480,"width":784,"height":11}},{"id":"cbd5f498-aac3-432a-aad9-4cf2da11a5ae","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":23,"box":{"x":69,"y":495,"width":811,"height":11}},{"id":"c88b524d-bb36-4854-888f-eb6a376c6d4a","block_type":"box","text":"accounts, subject to incentive fees. Mr. Azam and Ms. Agnew may therefore be entitled to receive a portion of any","page_number":23,"box":{"x":69,"y":510,"width":814,"height":11}},{"id":"231c292c-1892-4937-be2a-854ea218b424","block_type":"box","text":"incentive fees earned on such accounts.","page_number":23,"box":{"x":70,"y":525,"width":286,"height":9}},{"id":"bf571046-bb2c-4c3e-9e61-faec2104175c","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":23,"box":{"x":101,"y":548,"width":788,"height":11}},{"id":"3d63dead-aa53-4ef3-96e1-afeea62dd07c","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":23,"box":{"x":70,"y":563,"width":839,"height":11}},{"id":"dc7b1168-a5cd-473a-b1e5-4ec864f556f6","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":23,"box":{"x":68,"y":578,"width":823,"height":11}},{"id":"16f016df-e57a-410c-a099-70ae115e4a7a","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":23,"box":{"x":68,"y":593,"width":812,"height":12}},{"id":"f7e70632-f8e6-472f-93da-5e5452122c53","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":23,"box":{"x":69,"y":608,"width":777,"height":12}},{"id":"8d585c03-4d92-47a6-be74-c51b01870c46","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":23,"box":{"x":70,"y":624,"width":826,"height":10}},{"id":"6ac83ce2-d5b5-46d7-89da-67ca1308de30","block_type":"box","text":"Accounting Services","page_number":23,"box":{"x":68,"y":654,"width":150,"height":11}},{"id":"6363a728-6c73-421d-a621-fb19a38eb0c6","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”), which has its principal place of business at 301 Bellevue Parkway,","page_number":23,"box":{"x":101,"y":676,"width":802,"height":12}},{"id":"2eabca18-5825-4b53-9962-caff2d12725c","block_type":"box","text":"Wilmington, Delaware 19809, serves as the accounting services agent for the Fund. BNY Mellon records investment,","page_number":23,"box":{"x":68,"y":692,"width":836,"height":11}},{"id":"c347fd12-f007-44f9-a6d2-acae06977350","block_type":"box","text":"capital share and income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers","page_number":23,"box":{"x":69,"y":707,"width":820,"height":11}},{"id":"4e59f63d-af04-466c-b1ca-5be2f733b073","block_type":"box","text":"for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; reports cash balances to","page_number":23,"box":{"x":68,"y":722,"width":812,"height":11}},{"id":"18087791-9cdd-4685-b618-40da30e63e1f","block_type":"box","text":"BlackRock; prepares certain financial statements; calculates expenses, gains, losses and income; controls","page_number":23,"box":{"x":70,"y":737,"width":765,"height":11}},{"id":"981c5ac6-7772-427f-b8fd-1abfed8e8d22","block_type":"box","text":"disbursements; works with independent pricing sources; and computes and reports net asset value. In connection","page_number":23,"box":{"x":69,"y":752,"width":815,"height":11}},{"id":"7b28b6b4-25d4-4895-884e-6b02a0c24695","block_type":"box","text":"with its accounting services, BNY Mellon also provides certain administration services.","page_number":23,"box":{"x":68,"y":767,"width":621,"height":11}},{"id":"347652c9-33a0-484b-9abc-8cdf16cb69be","block_type":"box","text":"The table below shows the amounts paid by the Fund, to BNY Mellon and the Manager for accounting services","page_number":23,"box":{"x":101,"y":790,"width":787,"height":11}},{"id":"45b1968c-f498-4143-8a73-aabf9055d178","block_type":"box","text":"for the periods shown.","page_number":23,"box":{"x":68,"y":805,"width":159,"height":11}},{"id":"8ec0c47a-2bd3-487b-aba9-c2aafc53b706","block_type":"box","text":"Fees Paid","page_number":23,"box":{"x":720,"y":833,"width":56,"height":7}},{"id":"2fbd4e22-ba4f-441d-9328-ed4fb68d575a","block_type":"box","text":"to BNY Mellon","page_number":23,"box":{"x":706,"y":843,"width":83,"height":7}},{"id":"38d18051-b5d2-4284-96f2-5acb2d8856b0","block_type":"box","text":"Fees Paid","page_number":23,"box":{"x":837,"y":833,"width":55,"height":7}},{"id":"46133bc0-8b91-4d33-84a7-bafdc927f08b","block_type":"box","text":"to the Manager","page_number":23,"box":{"x":819,"y":843,"width":90,"height":9}},{"id":"a4813e6c-b5a9-4fdb-af25-3a700cd08e7d","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . .","page_number":23,"box":{"x":70,"y":861,"width":254,"height":11}},{"id":"f49775f6-35a3-427a-91a4-638a8bc1117b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,322 $0","page_number":23,"box":{"x":331,"y":860,"width":543,"height":12}},{"id":"fcbea434-1b3e-4078-931f-4bc71f304bd9","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":23,"box":{"x":70,"y":876,"width":254,"height":11}},{"id":"d6face28-5e3c-4f56-8c53-ade9a7e8177b","block_type":"box","text":"...........................................","page_number":23,"box":{"x":331,"y":884,"width":344,"height":1}},{"id":"0c5fdd6e-9709-4227-954f-3c3fe53aaef6","block_type":"box","text":"$115,155 $0","page_number":23,"box":{"x":712,"y":875,"width":162,"height":12}},{"id":"380d44b6-2611-4c95-84fb-60b5ad91bfa2","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":23,"box":{"x":70,"y":891,"width":254,"height":11}},{"id":"6da9aa0b-57e4-4e56-b432-13dae7e44e19","block_type":"box","text":"...........................................","page_number":23,"box":{"x":331,"y":899,"width":344,"height":1}},{"id":"0ae53ef2-1e0a-402a-9063-bcd7ed99cd88","block_type":"box","text":"$130,572 $0","page_number":23,"box":{"x":712,"y":891,"width":162,"height":11}},{"id":"6dbc8fc9-a46b-427f-9243-e1d2196bfb12","block_type":"box","text":"I-21","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"fb2601ba-3632-4e98-8879-53577310cdde","block_type":"box","text":"NM0926U-5975843-23/228","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4a15a87d-46a0-4d21-851c-da7a49a61e88","block_type":"box","text":"Custodian","page_number":24,"box":{"x":69,"y":45,"width":72,"height":9}},{"id":"4de1f305-20da-4204-903f-7d80f08a3679","block_type":"box","text":"BNY Mellon, which has its principal offices at 240 Greenwich Street, New York, New York 10286, serves as the","page_number":24,"box":{"x":102,"y":67,"width":794,"height":11}},{"id":"09588547-7e5a-4899-8195-2b51eeb91702","block_type":"box","text":"custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a custody account","page_number":24,"box":{"x":69,"y":82,"width":828,"height":12}},{"id":"3dd5e506-c5ae-40bf-a977-a9fd9bc88d1a","block_type":"box","text":"or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase and upon sale or","page_number":24,"box":{"x":69,"y":98,"width":820,"height":11}},{"id":"04fc84df-a4b9-4e49-96bc-dedd464f6ba9","block_type":"box","text":"maturity, and collects and receives all income and other payments and distributions on account of the assets of the","page_number":24,"box":{"x":69,"y":113,"width":825,"height":11}},{"id":"fd4647ae-15e9-4de5-b0af-c69198e0934a","block_type":"box","text":"Fund.","page_number":24,"box":{"x":70,"y":128,"width":36,"height":9}},{"id":"f615c7f8-dbb6-4b59-b0c7-07b561410b2d","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":24,"box":{"x":68,"y":158,"width":432,"height":11}},{"id":"aa020a3f-a76d-4eaa-844f-1356b690136d","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. serves as the transfer agent and dividend disbursing agent for the","page_number":24,"box":{"x":102,"y":181,"width":779,"height":11}},{"id":"018f18b7-8083-4505-9da5-b696b0b1d55d","block_type":"box","text":"Fund.","page_number":24,"box":{"x":70,"y":196,"width":36,"height":9}},{"id":"d01b8448-437c-4a46-8078-4142f3eb262f","block_type":"box","text":"Pursuant to a shareholders’ administrative services agreement, BlackRock provides certain shareholder liaison","page_number":24,"box":{"x":102,"y":219,"width":793,"height":11}},{"id":"02b1e281-c28e-4927-82ee-7d4e9daa71a1","block_type":"box","text":"services in connection with the Fund’s investor service center. The Fund reimburses BlackRock for its costs in","page_number":24,"box":{"x":69,"y":234,"width":785,"height":9}},{"id":"aa52c011-a550-4551-8ea8-cabcab99abed","block_type":"box","text":"maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses and","page_number":24,"box":{"x":69,"y":249,"width":833,"height":11}},{"id":"43e856a6-1faf-4956-8794-5ee8e5440efb","block_type":"box","text":"other out-of-pocket expenses. For the periods shown, the Fund reimbursed BlackRock for shareholder liaison services","page_number":24,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"ac102fc1-4f1c-43df-be53-87b372bc7545","block_type":"box","text":"pursuant to such agreement in the amounts set forth below:","page_number":24,"box":{"x":70,"y":279,"width":429,"height":11}},{"id":"56c274ba-35ef-437d-8466-c50bbcc50339","block_type":"box","text":"Fees Paid","page_number":24,"box":{"x":732,"y":307,"width":56,"height":7}},{"id":"c6f61ad2-7c8b-4c8f-adc8-dccf768a824f","block_type":"box","text":"to BlackRock","page_number":24,"box":{"x":720,"y":317,"width":80,"height":7}},{"id":"259aed4e-3fa1-4af1-b688-527877d0e7f4","block_type":"box","text":"Fees Waived","page_number":24,"box":{"x":833,"y":307,"width":72,"height":7}},{"id":"0ba3f508-7ad3-420d-ae8f-520eaf2a27d7","block_type":"box","text":"by BlackRock","page_number":24,"box":{"x":830,"y":317,"width":80,"height":9}},{"id":"84a1ebc6-ad6a-49d3-9639-d31a570da307","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":24,"box":{"x":70,"y":335,"width":457,"height":11}},{"id":"f2acc5ca-945a-4c0f-b73c-2c6415559248","block_type":"box","text":"....................","page_number":24,"box":{"x":533,"y":342,"width":157,"height":2}},{"id":"26a39b4d-2a97-4158-bf17-aa64e64bd7cf","block_type":"box","text":"$12,485 $12,485","page_number":24,"box":{"x":729,"y":334,"width":171,"height":12}},{"id":"201fd476-5b2d-458c-a4e8-5c061707c84a","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":24,"box":{"x":70,"y":350,"width":457,"height":11}},{"id":"faf35776-88a7-482f-956a-006ba0aef5c3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $ 7,589 $ 7,589","page_number":24,"box":{"x":533,"y":349,"width":367,"height":12}},{"id":"6e51ccaf-dfcd-467c-80c7-298b3a18246d","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":24,"box":{"x":70,"y":365,"width":457,"height":11}},{"id":"201da411-2578-42d4-a5e2-2603f9009e42","block_type":"box","text":"....................","page_number":24,"box":{"x":533,"y":373,"width":157,"height":1}},{"id":"2a4cc02d-44fe-43d0-b589-ed3a2e2ea482","block_type":"box","text":"$17,703 $17,703","page_number":24,"box":{"x":729,"y":365,"width":171,"height":11}},{"id":"0c954105-6f9a-405a-85d3-18edd6fc8269","block_type":"box","text":"Credit Agreement","page_number":24,"box":{"x":69,"y":397,"width":129,"height":11}},{"id":"3c124941-b370-4afd-8455-df08f7e4df38","block_type":"box","text":"The Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”),","page_number":24,"box":{"x":101,"y":419,"width":765,"height":12}},{"id":"e4d81e7b-b4ef-4122-8796-55f9c2e4c464","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":24,"box":{"x":70,"y":434,"width":748,"height":12}},{"id":"3366c37a-498f-4af2-a8cc-56f047fdfb36","block_type":"box","text":"April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated","page_number":24,"box":{"x":68,"y":450,"width":823,"height":11}},{"id":"45647c53-b2f3-49fb-a18b-4875c1a53375","block_type":"box","text":"for certain Participating Funds, the Participating Funds, including the Fund, can borrow up to an aggregate","page_number":24,"box":{"x":68,"y":465,"width":757,"height":11}},{"id":"10099c8b-4db4-442e-b661-b3a5be87b147","block_type":"box","text":"commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as","page_number":24,"box":{"x":69,"y":479,"width":801,"height":12}},{"id":"7d10af50-da3e-40d7-86f7-6ecbeae1cbdb","block_type":"box","text":"specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet shareholder","page_number":24,"box":{"x":69,"y":495,"width":751,"height":11}},{"id":"49e636ca-fed5-45ea-a0d5-1880dc1982a5","block_type":"box","text":"redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit Agreement for","page_number":24,"box":{"x":69,"y":510,"width":784,"height":11}},{"id":"d39542e7-637d-4abb-b88a-d17fe4f9d3b1","block_type":"box","text":"leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses and SAI, subject","page_number":24,"box":{"x":70,"y":525,"width":839,"height":12}},{"id":"47912b0e-aae7-4849-aede-b33e9a427a2f","block_type":"box","text":"to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other fees and","page_number":24,"box":{"x":68,"y":540,"width":794,"height":12}},{"id":"50d30c3b-1b05-4a22-9bd9-c2bf54c0b71a","block_type":"box","text":"expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the Fund’s","page_number":24,"box":{"x":69,"y":555,"width":809,"height":12}},{"id":"0be9a7a5-ee67-4d93-a017-232b61be5012","block_type":"box","text":"return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate commitment","page_number":24,"box":{"x":69,"y":571,"width":814,"height":11}},{"id":"3c3f90e3-9b17-40ae-bb04-00b2900ffd74","block_type":"box","text":"amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be charged","page_number":24,"box":{"x":69,"y":586,"width":800,"height":11}},{"id":"7700c7fc-4ad3-4be4-a49d-2126b96c4640","block_type":"box","text":"interest at a variable rate.","page_number":24,"box":{"x":70,"y":601,"width":182,"height":9}},{"id":"aa95df44-b609-49d8-8754-6ca49eab6222","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":24,"box":{"x":68,"y":631,"width":491,"height":11}},{"id":"40a62eca-38eb-4dc9-a698-004f79ca05d5","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":24,"box":{"x":102,"y":654,"width":773,"height":11}},{"id":"d510d45a-e8fa-4845-bcc2-ef23f6a6ad77","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of BlackRock (“affiliates”) for the Fund for the periods","page_number":24,"box":{"x":69,"y":669,"width":824,"height":11}},{"id":"822c21f4-198b-41ca-a078-71797abfa1f7","block_type":"box","text":"shown. BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of BlackRock, acts as the Fund’s sole","page_number":24,"box":{"x":69,"y":684,"width":820,"height":11}},{"id":"8a198258-c89c-4082-919b-51e3747da924","block_type":"box","text":"distributor.","page_number":24,"box":{"x":69,"y":699,"width":74,"height":9}},{"id":"a1aabdb6-5d3c-48d7-b661-3f60d104a08e","block_type":"box","text":"Investor A Shares","page_number":24,"box":{"x":645,"y":727,"width":102,"height":8}},{"id":"1138e783-c5f6-44cc-9f12-c368a1b46bc1","block_type":"box","text":"Gross Sales","page_number":24,"box":{"x":485,"y":753,"width":68,"height":7}},{"id":"bd2bc91c-ab76-49e1-ba6d-31d8006e9ba4","block_type":"box","text":"Charges","page_number":24,"box":{"x":496,"y":763,"width":47,"height":9}},{"id":"d5e8cb44-9fe6-433a-9649-fd2d5e047766","block_type":"box","text":"Collected","page_number":24,"box":{"x":492,"y":773,"width":54,"height":8}},{"id":"7cbd2a1c-130c-4ae8-a096-801f65537d5f","block_type":"box","text":"Sales Charges","page_number":24,"box":{"x":585,"y":753,"width":84,"height":9}},{"id":"632f74cd-4d3d-49c7-8f88-96eb62f2d409","block_type":"box","text":"Retained","page_number":24,"box":{"x":602,"y":763,"width":51,"height":7}},{"id":"40e772eb-cfa3-42cc-ad60-68cabdf03830","block_type":"box","text":"by BRIL","page_number":24,"box":{"x":606,"y":774,"width":44,"height":8}},{"id":"fc4f8041-044d-4a47-84ec-9d8bac8ada85","block_type":"box","text":"Sales Charges","page_number":24,"box":{"x":699,"y":753,"width":83,"height":9}},{"id":"00767dc0-29c8-41d5-b334-922324b250d7","block_type":"box","text":"Paid to","page_number":24,"box":{"x":721,"y":763,"width":40,"height":7}},{"id":"fc8c599e-c7c9-44b5-955d-ab04bebed9ef","block_type":"box","text":"Affiliates","page_number":24,"box":{"x":715,"y":773,"width":51,"height":8}},{"id":"1c8492da-b08f-45de-b545-be58cda474a6","block_type":"box","text":"CDSCs Received","page_number":24,"box":{"x":812,"y":743,"width":97,"height":7}},{"id":"449ad459-8a23-4574-a3ad-02127b3204da","block_type":"box","text":"on Redemption","page_number":24,"box":{"x":817,"y":753,"width":87,"height":9}},{"id":"08dbe46d-642b-4b95-83f1-c408b64990ee","block_type":"box","text":"of Load-Waived","page_number":24,"box":{"x":817,"y":763,"width":87,"height":7}},{"id":"a87290ea-fdd8-4a36-babd-5a97b4b60a27","block_type":"box","text":"Shares","page_number":24,"box":{"x":841,"y":773,"width":39,"height":8}},{"id":"aa1ed731-0c48-4a41-a516-10fb00f3beb0","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . $ 79,900 $6,125 $6,125 $1,094","page_number":24,"box":{"x":70,"y":790,"width":817,"height":12}},{"id":"b5efb64a-079d-4426-976b-3b51a45cbfb5","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . $103,162 $7,840 $7,840 $5,395","page_number":24,"box":{"x":70,"y":806,"width":817,"height":11}},{"id":"67c1d75a-5290-48b4-89fd-525113af0a3d","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . $ 96,453 $6,619 $6,619 $1,811","page_number":24,"box":{"x":70,"y":821,"width":817,"height":11}},{"id":"ae357214-cc20-4386-ad3d-13f82b739a1c","block_type":"box","text":"Investor C Shares","page_number":24,"box":{"x":791,"y":851,"width":102,"height":7}},{"id":"cdd1c217-1433-4507-aa8f-4c854d19cc6c","block_type":"box","text":"CDSCs","page_number":24,"box":{"x":781,"y":867,"width":40,"height":7}},{"id":"50adfc45-bbb2-4597-b6ab-83c31389fe49","block_type":"box","text":"Received","page_number":24,"box":{"x":775,"y":877,"width":52,"height":7}},{"id":"b7c2e2a9-5a4a-4ba5-903d-fe07c91a6fb4","block_type":"box","text":"by BRIL","page_number":24,"box":{"x":779,"y":887,"width":44,"height":9}},{"id":"f21f7b39-11cc-4141-a89d-917ec2a273b8","block_type":"box","text":"CDSCs","page_number":24,"box":{"x":864,"y":867,"width":39,"height":7}},{"id":"c61c6f77-057e-4202-ba97-6fb63f98ba24","block_type":"box","text":"Paid to","page_number":24,"box":{"x":863,"y":877,"width":41,"height":7}},{"id":"df2db778-93a9-46a7-8dba-a32e1d7787b0","block_type":"box","text":"Affiliates","page_number":24,"box":{"x":857,"y":887,"width":52,"height":7}},{"id":"7a10cb6a-93f5-47fe-9fb2-fdcc2eaf2f81","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . .","page_number":24,"box":{"x":70,"y":905,"width":258,"height":11}},{"id":"0bb05e36-7013-4205-ac5a-0d541ee8142d","block_type":"box","text":"...................................................","page_number":24,"box":{"x":334,"y":912,"width":410,"height":1}},{"id":"ca05c3ac-90e4-4d1a-8ab1-6383faa66361","block_type":"box","text":"$493 $493","page_number":24,"box":{"x":782,"y":904,"width":120,"height":10}},{"id":"4952c09d-56d8-4c57-9ada-9da9b00c614f","block_type":"box","text":"I-22","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e2ce28f7-cffb-4527-8c29-672a829d3c36","block_type":"box","text":"NM0926U-5975843-24/228","page_number":24,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bd498735-8f50-4a96-927e-2794438de40b","block_type":"box","text":"Investor C Shares","page_number":25,"box":{"x":791,"y":49,"width":102,"height":7}},{"id":"8718df98-ea5b-4928-a9a9-37fa8a3849ee","block_type":"box","text":"CDSCs","page_number":25,"box":{"x":781,"y":65,"width":40,"height":7}},{"id":"f2b26a23-fe4a-45c7-a54d-a54a24cce783","block_type":"box","text":"Received","page_number":25,"box":{"x":775,"y":75,"width":52,"height":7}},{"id":"2f26f381-631a-4b3c-a284-59530991a920","block_type":"box","text":"by BRIL","page_number":25,"box":{"x":779,"y":85,"width":44,"height":9}},{"id":"de885b8b-19b9-4b9e-8c26-56d135a9179e","block_type":"box","text":"CDSCs","page_number":25,"box":{"x":864,"y":65,"width":39,"height":7}},{"id":"40699f65-2ae8-4bab-ae4f-b330d92e999e","block_type":"box","text":"Paid to","page_number":25,"box":{"x":863,"y":75,"width":41,"height":7}},{"id":"6bdb43f2-600c-4a7d-9e7d-256f2892c82b","block_type":"box","text":"Affiliates","page_number":25,"box":{"x":857,"y":85,"width":52,"height":7}},{"id":"687b9acf-7cff-4156-b528-7c190c36f4bb","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":25,"box":{"x":70,"y":103,"width":258,"height":11}},{"id":"58a73805-032f-4c8d-ab62-5606cba7eb68","block_type":"box","text":"...................................................","page_number":25,"box":{"x":334,"y":110,"width":410,"height":1}},{"id":"cc6b9198-f1ef-4657-afb4-8b4786a24d08","block_type":"box","text":"$252 $252","page_number":25,"box":{"x":782,"y":102,"width":120,"height":10}},{"id":"e6ffc7e7-4e05-4c6b-9f24-9c2f0b2f5996","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":25,"box":{"x":70,"y":118,"width":258,"height":11}},{"id":"c1924829-481a-4749-86e1-73afb601f793","block_type":"box","text":"...................................................","page_number":25,"box":{"x":334,"y":125,"width":410,"height":2}},{"id":"1326b5af-7c1d-4be0-ad03-aeeca2cd0da5","block_type":"box","text":"$626 $626","page_number":25,"box":{"x":782,"y":117,"width":120,"height":11}},{"id":"59e3f2c3-d78c-40f8-9dd5-57f988a5dc49","block_type":"box","text":"The table below sets forth information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund","page_number":25,"box":{"x":101,"y":142,"width":779,"height":11}},{"id":"d40a7553-923c-41e4-8ef7-01a42a86efff","block_type":"box","text":"paid to BRIL under the Fund’s 12b-1 plan. A portion of the fees collected by BRIL was paid to affiliates for providing","page_number":25,"box":{"x":70,"y":157,"width":823,"height":11}},{"id":"135d3043-5fdc-4239-ad12-d779468fcc59","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution related","page_number":25,"box":{"x":69,"y":172,"width":827,"height":11}},{"id":"a7705658-42e9-40ef-b0b1-4cbaf4c628be","block_type":"box","text":"activities and services for Investor C and Class R Shares.","page_number":25,"box":{"x":69,"y":187,"width":409,"height":9}},{"id":"b50022fa-96bf-4914-8544-c9f66a66492b","block_type":"box","text":"Class Name","page_number":25,"box":{"x":69,"y":215,"width":68,"height":7}},{"id":"e888b8fb-6512-4886-8c02-349e14a4eaa0","block_type":"box","text":"Fees Paid to BRIL","page_number":25,"box":{"x":806,"y":215,"width":103,"height":7}},{"id":"ac5ff76f-510e-4b43-999f-42f7ba043505","block_type":"box","text":"Investor A Shares .","page_number":25,"box":{"x":70,"y":233,"width":134,"height":9}},{"id":"69ebd657-4d2b-4cff-935d-d95bab550346","block_type":"box","text":"......................................................................","page_number":25,"box":{"x":210,"y":240,"width":564,"height":2}},{"id":"db0220a9-cdb2-479b-a4d6-eb3400d7553d","block_type":"box","text":"$733,436","page_number":25,"box":{"x":822,"y":232,"width":71,"height":11}},{"id":"4b28c0dc-ecde-416e-8a07-1dd8dd904b03","block_type":"box","text":"Investor C Shares . . .","page_number":25,"box":{"x":70,"y":248,"width":150,"height":9}},{"id":"6388a360-4f35-48ab-be11-409aa946467a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,311","page_number":25,"box":{"x":226,"y":247,"width":667,"height":12}},{"id":"4d505338-7b15-48ef-b9ca-e7b0bb85d7cb","block_type":"box","text":"Class R Shares","page_number":25,"box":{"x":69,"y":263,"width":109,"height":9}},{"id":"171a3072-0d82-41ad-9994-473d4990fef6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,744","page_number":25,"box":{"x":185,"y":263,"width":708,"height":11}},{"id":"601c9631-6d4c-4ed0-8d64-d5426ba908a7","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":25,"box":{"x":68,"y":295,"width":318,"height":11}},{"id":"1c8c2555-b3ff-427d-a224-5195a2539b79","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":25,"box":{"x":101,"y":317,"width":790,"height":12}},{"id":"e474fa1a-5507-4bf4-9ec5-89b9d53b83f2","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on","page_number":25,"box":{"x":68,"y":332,"width":731,"height":12}},{"id":"bfad4472-4851-44b1-ade4-1a43c32e5eeb","block_type":"box","text":"May 31, 2026, is set forth below.","page_number":25,"box":{"x":70,"y":348,"width":238,"height":11}},{"id":"24c5b5c1-af1f-4484-8147-18a57b143dd2","block_type":"box","text":"Investor A Shares","page_number":25,"box":{"x":805,"y":376,"width":102,"height":7}},{"id":"86c0b64b-7da6-4c53-8683-81b0bb02d8b0","block_type":"box","text":"Net Assets","page_number":25,"box":{"x":70,"y":394,"width":76,"height":9}},{"id":"26d45dd5-d966-4f97-b546-32a013fb97a7","block_type":"box","text":".............................................................................","page_number":25,"box":{"x":150,"y":401,"width":621,"height":1}},{"id":"1f58afe6-9722-45cb-ad9b-74d0a5a95912","block_type":"box","text":"$304,092,032","page_number":25,"box":{"x":803,"y":393,"width":106,"height":11}},{"id":"df4e1ea0-820f-4438-803e-b3435e75f3f4","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":25,"box":{"x":70,"y":409,"width":245,"height":11}},{"id":"7f212805-a6de-450e-a7f9-f183fa7285c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,","page_number":25,"box":{"x":321,"y":409,"width":524,"height":10}},{"id":"ad936cbe-4876-45af-ae12-69ad547a218d","block_type":"box","text":"709,738","page_number":25,"box":{"x":847,"y":409,"width":62,"height":10}},{"id":"eb551163-b096-43b6-a37a-32e68f42558c","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":25,"box":{"x":70,"y":424,"width":571,"height":11}},{"id":"24251ea2-5547-4b3f-95a6-d1b603a32402","block_type":"box","text":"................","page_number":25,"box":{"x":647,"y":431,"width":124,"height":2}},{"id":"0be25d1a-efd7-42f9-9de1-a13cac937897","block_type":"box","text":"$23.93","page_number":25,"box":{"x":857,"y":423,"width":52,"height":11}},{"id":"478b1ae1-5d02-4449-b4aa-69d11b64ec6c","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":25,"box":{"x":69,"y":439,"width":534,"height":11}},{"id":"076afc1f-0223-409a-8b5f-00c5d60b7b86","block_type":"box","text":"1","page_number":25,"box":{"x":604,"y":439,"width":4,"height":5}},{"id":"272fa74f-40ee-4397-96e4-afa2ac341777","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $1.32","page_number":25,"box":{"x":615,"y":438,"width":294,"height":11}},{"id":"b07ee6e2-3b77-4c27-bf02-340b2a9144c6","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":69,"y":458,"width":702,"height":12}},{"id":"384ccc1b-3f53-4ced-a31d-24c9c6687eb0","block_type":"box","text":"$25.25","page_number":25,"box":{"x":857,"y":458,"width":52,"height":10}},{"id":"9f405528-ab8e-4732-8ad2-673b9c3051cb","block_type":"box","text":"1","page_number":25,"box":{"x":69,"y":491,"width":3,"height":3}},{"id":"8627a085-0bbb-4c1c-9488-e3bcdf64d3b7","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":25,"box":{"x":94,"y":491,"width":541,"height":9}},{"id":"26459ee2-e7a6-4fee-a660-16bac8048e70","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":25,"box":{"x":101,"y":511,"width":796,"height":12}},{"id":"a9b38ccb-6dde-44f9-9fe0-1ca2f72bb856","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":25,"box":{"x":69,"y":526,"width":833,"height":12}},{"id":"d3bdc065-919f-4142-a631-7b18996678ba","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":25,"box":{"x":69,"y":542,"width":813,"height":11}},{"id":"50fff50e-e535-4ee5-a7d9-a3fea90a8363","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":25,"box":{"x":69,"y":557,"width":377,"height":11}},{"id":"0d16a5c0-5dda-43ff-bdb0-44d2c4c33906","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":25,"box":{"x":68,"y":587,"width":302,"height":11}},{"id":"64eef938-6798-41d7-9fe9-4303bdc79291","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":25,"box":{"x":102,"y":610,"width":609,"height":11}},{"id":"f45e9b9b-332e-421c-9c7b-590c9977c842","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, during","page_number":25,"box":{"x":102,"y":632,"width":798,"height":12}},{"id":"a65d309a-0f3c-4277-82b8-28f147c442f5","block_type":"box","text":"the periods shown is set forth in the following table:","page_number":25,"box":{"x":68,"y":647,"width":371,"height":12}},{"id":"4411bdfc-82b1-4330-949b-2ca291fe30dd","block_type":"box","text":"Aggregate Brokerage","page_number":25,"box":{"x":584,"y":676,"width":125,"height":9}},{"id":"47624599-475a-4bfb-9954-854c9102ad2f","block_type":"box","text":"Commissions Paid","page_number":25,"box":{"x":593,"y":686,"width":106,"height":7}},{"id":"a5f95128-e82d-4e0d-b305-c32a4586f4e8","block_type":"box","text":"Brokerage Commissions Paid","page_number":25,"box":{"x":739,"y":676,"width":170,"height":9}},{"id":"3e89da0e-9eed-4046-bc87-cb71cc05ec1b","block_type":"box","text":"to Affiliates","page_number":25,"box":{"x":790,"y":686,"width":68,"height":7}},{"id":"a21849bd-ed8d-4382-8544-7429ef94785d","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 774,018 $0","page_number":25,"box":{"x":70,"y":703,"width":763,"height":12}},{"id":"0231ad2a-7cf9-49a4-a083-464ea0fd22bc","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,053,596 $0","page_number":25,"box":{"x":70,"y":718,"width":763,"height":12}},{"id":"b3c2a78f-4935-4f03-94fe-53d558678637","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,012,333 $0","page_number":25,"box":{"x":70,"y":733,"width":763,"height":12}},{"id":"59b78577-b25f-4acd-adcb-37dc7eeb2350","block_type":"box","text":"Set forth below is information about the dollar amount of brokerage commissions paid by the Fund to brokers for","page_number":25,"box":{"x":102,"y":758,"width":805,"height":11}},{"id":"c049aff5-ab7c-43c1-9dd1-ac2b59f3ef3d","block_type":"box","text":"providing Section 28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as","page_number":25,"box":{"x":70,"y":773,"width":833,"height":11}},{"id":"0e3bdc0a-6f6d-4c24-b828-c1ca9361f4d3","block_type":"box","text":"amended, and the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026.","page_number":25,"box":{"x":69,"y":788,"width":815,"height":11}},{"id":"c5d6c71d-d401-41b9-a72d-d5e0b65b0032","block_type":"box","text":"The provision of Section 28(e) research/brokerage services was not necessarily a factor in the placement of all","page_number":25,"box":{"x":68,"y":803,"width":795,"height":11}},{"id":"69a34566-1543-4de1-b070-1f3bcc79bc59","block_type":"box","text":"brokerage business with such brokers.","page_number":25,"box":{"x":69,"y":818,"width":274,"height":11}},{"id":"66a287b8-7111-4e2f-88e1-648196dd0cae","block_type":"box","text":"Amount of Commissions","page_number":25,"box":{"x":318,"y":846,"width":141,"height":8}},{"id":"8ff8c6f0-3f52-421e-958b-e058401bd767","block_type":"box","text":"Paid to Brokers for","page_number":25,"box":{"x":335,"y":857,"width":109,"height":7}},{"id":"c1c75e80-c06d-4196-9d0a-4f4bae1fba2e","block_type":"box","text":"Providing 28(e) Eligible Research Services","page_number":25,"box":{"x":265,"y":867,"width":248,"height":8}},{"id":"67b3b914-cc5f-40db-bc7a-b92ca3692246","block_type":"box","text":"Amount of Brokerage","page_number":25,"box":{"x":588,"y":857,"width":124,"height":8}},{"id":"cba278d1-1d4b-41cf-ab15-616f5cf1cb4f","block_type":"box","text":"Transactions Involved","page_number":25,"box":{"x":587,"y":867,"width":126,"height":7}},{"id":"e58aa614-4b94-4286-b2b6-2a126bbe0266","block_type":"box","text":"$0 $0","page_number":25,"box":{"x":380,"y":884,"width":280,"height":10}},{"id":"3f3928bb-bd5f-461f-bdaa-9889ebdab7db","block_type":"box","text":"I-23","page_number":25,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"2088b83b-3fb1-41b7-bff6-5b145c5f1254","block_type":"box","text":"NM0926U-5975843-25/228","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"df9a1f65-ae0c-4149-b648-962e80bd03e8","block_type":"box","text":"As of May 31, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under","page_number":26,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"675887fa-6555-4957-9bb6-2fcc7e9c3eaa","block_type":"box","text":"the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":26,"box":{"x":68,"y":60,"width":748,"height":11}},{"id":"c315e8c3-ada2-428f-ae31-1d36754998d3","block_type":"box","text":"May 31, 2026.","page_number":26,"box":{"x":70,"y":75,"width":104,"height":11}},{"id":"97f31431-d46f-4d90-999c-58138d02033c","block_type":"box","text":"Securities Lending","page_number":26,"box":{"x":68,"y":105,"width":135,"height":11}},{"id":"6bdae824-364f-465d-a480-782061b478f4","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":26,"box":{"x":101,"y":128,"width":807,"height":11}},{"id":"95f998eb-5300-4c71-b059-830f897a6357","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":26,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"8bfa5794-d017-4a6b-9bc6-996e53792a9a","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":26,"box":{"x":69,"y":158,"width":813,"height":11}},{"id":"37d85bcd-73eb-4f00-ac31-0264f582cbad","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":26,"box":{"x":70,"y":173,"width":838,"height":11}},{"id":"f662cd5e-e6f4-4b2a-b3dc-8ebe9275e897","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":26,"box":{"x":69,"y":188,"width":813,"height":12}},{"id":"77a56d06-42bb-4c99-b542-dbb30b7b696b","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":26,"box":{"x":70,"y":204,"width":646,"height":11}},{"id":"592b1bbd-277b-41a5-a1ec-14f93d4f2b2e","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":26,"box":{"x":101,"y":226,"width":735,"height":11}},{"id":"79a9b476-a15e-4dc8-b375-820651feba59","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":26,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"694a51f3-756a-4bd9-bde8-099376360213","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":26,"box":{"x":70,"y":256,"width":822,"height":11}},{"id":"0040088c-d376-4209-b13c-a6a0f7aa1a51","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":26,"box":{"x":69,"y":271,"width":787,"height":12}},{"id":"b341b789-3916-453b-af49-e02fc8b4c600","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":26,"box":{"x":69,"y":286,"width":783,"height":12}},{"id":"559480fb-6d1e-4853-aaf7-7ea22b210315","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":26,"box":{"x":70,"y":302,"width":800,"height":11}},{"id":"2a006b4a-4d6f-432c-b7f8-992dc2463eaa","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":26,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"2f1d3d0b-a1ae-48ad-8e4e-7bc9b3ae5ede","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":26,"box":{"x":70,"y":332,"width":830,"height":11}},{"id":"52aed40e-7474-4456-a191-bed620efb19d","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":26,"box":{"x":69,"y":347,"width":773,"height":11}},{"id":"f4a1d76f-91fa-4e4b-bba9-ac23cf1f9ed9","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":26,"box":{"x":101,"y":370,"width":776,"height":11}},{"id":"d84b3dc7-2d1a-483e-ba23-ce5b85af1779","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":26,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"beeacc73-d677-47b5-9896-921a88d31bd0","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":26,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"73b9ca3e-0070-4c2a-bd11-627bbf6eb20c","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":26,"box":{"x":69,"y":415,"width":799,"height":11}},{"id":"ec3fca9b-39d8-451f-b959-811956206135","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":26,"box":{"x":68,"y":430,"width":835,"height":11}},{"id":"e99caf75-9f80-4747-bce3-f22ed2ec07da","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":26,"box":{"x":69,"y":445,"width":818,"height":12}},{"id":"b7bc9540-1923-4d52-b308-a8ad3c417e2d","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":26,"box":{"x":68,"y":460,"width":789,"height":12}},{"id":"281c21d1-0d33-4413-a23b-a9a9291e205d","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":26,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"6a27a267-6824-4e60-8d2f-6ae6f3d95e23","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":26,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"ba7881c7-7758-4214-a647-ef2d28527a8b","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":26,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"a4fbaa9e-3aac-48db-ab44-2f02ea1ce705","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":26,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"cd600b8b-b790-4b9d-afa2-188a85e0c171","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":26,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"5e9940ca-1f7a-4899-b8f3-98e4d2e582c2","block_type":"box","text":"Fund’s returns on securities lending.","page_number":26,"box":{"x":70,"y":551,"width":258,"height":11}},{"id":"4a254017-83c3-4891-97ac-1186c9157194","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":26,"box":{"x":102,"y":574,"width":774,"height":11}},{"id":"717823d2-fb18-4720-ae74-ef67698f92f8","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":26,"box":{"x":69,"y":589,"width":790,"height":11}},{"id":"88bc0e71-7498-43ce-b23d-c5c9ca5f5d91","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":26,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"3c0c4a4b-4194-4615-a6cb-e21de31561bc","block_type":"box","text":"Corporation and BIM.","page_number":26,"box":{"x":69,"y":619,"width":149,"height":11}},{"id":"a620e9a4-08e2-4666-b230-ca515de9c6ad","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 82% of securities","page_number":26,"box":{"x":102,"y":642,"width":783,"height":11}},{"id":"99c37b8b-e351-49a4-9942-0f2af3c37def","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":26,"box":{"x":70,"y":657,"width":815,"height":11}},{"id":"84d49d3b-5af6-4e0f-b301-30b2c1b7b9e2","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":26,"box":{"x":69,"y":672,"width":463,"height":11}},{"id":"d6690b39-88ce-4662-b6a7-396d433829be","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":26,"box":{"x":102,"y":695,"width":753,"height":11}},{"id":"7d53504b-45d3-484a-b0a4-664ad5522733","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":26,"box":{"x":69,"y":710,"width":778,"height":11}},{"id":"8865352b-3d73-44c0-b187-4946690b41f4","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":26,"box":{"x":70,"y":725,"width":817,"height":11}},{"id":"f664beff-5cf3-4ed4-88d0-8e847b46a23b","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment fees); and","page_number":26,"box":{"x":70,"y":740,"width":794,"height":11}},{"id":"df3bd9f6-c5c8-4602-9457-8f6de4b0a424","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":26,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"f3c773f2-ae68-4a90-a92d-c84b5995db9f","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":26,"box":{"x":102,"y":778,"width":683,"height":11}},{"id":"c556a03e-d63e-4fcc-9236-a0abed926f61","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":26,"box":{"x":101,"y":801,"width":803,"height":11}},{"id":"ca4e1a54-69d0-47bd-87d7-479fae6f4969","block_type":"box","text":"the following:","page_number":26,"box":{"x":68,"y":816,"width":93,"height":11}},{"id":"6836790d-1234-442d-97cc-156555393adb","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":26,"box":{"x":69,"y":836,"width":818,"height":11}},{"id":"09b488f6-e6ef-4e12-a6b9-39e37832d313","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":26,"box":{"x":102,"y":851,"width":333,"height":10}},{"id":"da9a40e6-6737-4b08-acd7-5365dcdbfad7","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":26,"box":{"x":69,"y":871,"width":538,"height":11}},{"id":"aa03fae9-c47a-4bd2-9434-ae9f334cebc5","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":26,"box":{"x":69,"y":891,"width":330,"height":12}},{"id":"d099e642-f278-4563-8c25-35077859ef29","block_type":"box","text":"I-24","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"6f489668-cc4e-405e-85f0-5ba2545181d5","block_type":"box","text":"NM0926U-5975843-26/228","page_number":26,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c7529e70-35b8-4dca-bfa5-9a36b337341a","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":27,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"e8ad611a-3345-42a3-9b64-b7c53b76d548","block_type":"box","text":"of excess collateral, as necessary;","page_number":27,"box":{"x":102,"y":60,"width":246,"height":11}},{"id":"0506d17c-17a6-4752-97da-0e8b6402cc4c","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":27,"box":{"x":69,"y":80,"width":562,"height":11}},{"id":"0c4cf189-384e-42e0-a006-29315143c833","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":27,"box":{"x":69,"y":100,"width":665,"height":11}},{"id":"ebefaa63-7be9-4323-bc64-f3be71f83c6e","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":27,"box":{"x":69,"y":120,"width":822,"height":12}},{"id":"fe1e5dd7-abd5-4b3a-a6e0-67e49273f40f","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":27,"box":{"x":101,"y":135,"width":803,"height":11}},{"id":"5c669745-f153-4634-8878-afeee87e12b8","block_type":"box","text":"of the loaned securities; and","page_number":27,"box":{"x":102,"y":150,"width":203,"height":11}},{"id":"0083e8c2-d189-447e-827a-f2592394c7c9","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":27,"box":{"x":69,"y":171,"width":808,"height":11}},{"id":"ae031285-a3d8-4478-880f-99dbc0224414","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":27,"box":{"x":101,"y":193,"width":805,"height":12}},{"id":"f8cb3813-7377-4a7f-9eb8-8e0dd2d8d8e9","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":27,"box":{"x":69,"y":208,"width":546,"height":12}},{"id":"7e73ba68-0c11-4494-9c83-f9bbf4cacb6e","block_type":"box","text":"Gross income from securities lending activities","page_number":27,"box":{"x":69,"y":236,"width":343,"height":11}},{"id":"d32b9cc9-fc24-4ce6-9e7c-07b75ca3b4f8","block_type":"box","text":"...................................................","page_number":27,"box":{"x":416,"y":244,"width":409,"height":1}},{"id":"a5bdb081-def6-469e-937c-2eed39f81c10","block_type":"box","text":"$24,152","page_number":27,"box":{"x":847,"y":236,"width":62,"height":11}},{"id":"5a4d8e44-c80b-455e-9d5a-4657dd9b17c8","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":27,"box":{"x":70,"y":256,"width":565,"height":11}},{"id":"50dcc131-78fe-4c1c-9e95-bd5f6f394c0e","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":27,"box":{"x":79,"y":271,"width":599,"height":11}},{"id":"df963767-71f7-4acf-bf01-752a699b634a","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 374","page_number":27,"box":{"x":685,"y":270,"width":224,"height":11}},{"id":"6ef7715d-857a-43b1-8380-423aa0ff75d2","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":27,"box":{"x":79,"y":286,"width":673,"height":11}},{"id":"f01bff58-4183-4e59-ad9b-d6ec503c5f10","block_type":"box","text":". . . . . . . . . $ 237","page_number":27,"box":{"x":758,"y":285,"width":150,"height":11}},{"id":"b25e484a-67e7-483b-8735-df1b5c75c0ea","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":27,"box":{"x":78,"y":301,"width":551,"height":11}},{"id":"12bdfb42-8aaf-4b7c-8d9c-c8a4fad395e8","block_type":"box","text":"........................ $ 0","page_number":27,"box":{"x":636,"y":300,"width":273,"height":11}},{"id":"d2f835e0-6242-45f7-b70c-be7437b8bd4c","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":27,"box":{"x":79,"y":316,"width":567,"height":11}},{"id":"16f816f3-f291-4c75-ae89-3e44178bbde1","block_type":"box","text":"...................... $ 0","page_number":27,"box":{"x":652,"y":315,"width":257,"height":11}},{"id":"8c101933-a1fa-4a6b-9092-9603ac617a54","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":331,"width":289,"height":11}},{"id":"4b586b46-4d1d-4be2-a71b-f53d3041ea0c","block_type":"box","text":"........................................................","page_number":27,"box":{"x":375,"y":339,"width":450,"height":1}},{"id":"16c76b71-23ff-4a8a-8c4b-04930e3aac9b","block_type":"box","text":"$21,451","page_number":27,"box":{"x":847,"y":331,"width":62,"height":11}},{"id":"d269d28e-0115-4385-8a9a-e73adc4b9ffa","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":27,"box":{"x":79,"y":346,"width":542,"height":12}},{"id":"032958df-61cb-4e6c-b6c2-f319e49c941d","block_type":"box","text":"......................... $ 0","page_number":27,"box":{"x":628,"y":346,"width":281,"height":10}},{"id":"5267d32b-6efd-4ce3-8c0a-7b1babdc82a9","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":27,"box":{"x":68,"y":362,"width":455,"height":11}},{"id":"94a97208-78e5-4b1a-b6d5-d7eac7829ad4","block_type":"box","text":".....................................","page_number":27,"box":{"x":530,"y":369,"width":295,"height":1}},{"id":"b61b1237-0790-49e9-b97b-a77635d64ff6","block_type":"box","text":"$22,062","page_number":27,"box":{"x":847,"y":361,"width":62,"height":11}},{"id":"5226a7ee-6032-4bc6-83e0-e5fe312d6afc","block_type":"box","text":"Net income from securities lending activities","page_number":27,"box":{"x":69,"y":381,"width":327,"height":11}},{"id":"3d87bb79-b8ac-40de-8717-63ffe1ef6d5d","block_type":"box","text":".....................................................","page_number":27,"box":{"x":399,"y":388,"width":426,"height":2}},{"id":"b90f2061-f4bb-4032-a32e-8c7f4a669372","block_type":"box","text":"$ 2,090","page_number":27,"box":{"x":847,"y":380,"width":62,"height":12}},{"id":"ac892577-29fc-41d6-a363-c300ea6bad75","block_type":"box","text":"VIII. Additional Information","page_number":27,"box":{"x":68,"y":417,"width":195,"height":9}},{"id":"333f3c5a-bb4f-4399-97d3-9f23164f6d5a","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":27,"box":{"x":102,"y":440,"width":352,"height":11}},{"id":"7870a3b0-2ead-4c14-a3ed-a70ec931b16e","block_type":"box","text":"Deloitte & Touche LLP, with offices at 115 Federal Street,","page_number":27,"box":{"x":461,"y":440,"width":408,"height":10}},{"id":"cf6602dc-0603-4ef0-b32e-f8e2eb8f0b78","block_type":"box","text":"Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":27,"box":{"x":70,"y":455,"width":717,"height":11}},{"id":"be894141-792c-4f4e-90c4-bbb106c82934","block_type":"box","text":"Counsel.","page_number":27,"box":{"x":101,"y":478,"width":62,"height":8}},{"id":"b5eba3f4-0643-46f7-aba8-480cf954dac5","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":27,"box":{"x":170,"y":477,"width":736,"height":12}},{"id":"20c19b0d-d46e-445c-8dce-516e35ef3c75","block_type":"box","text":"the Funds’ counsel.","page_number":27,"box":{"x":68,"y":493,"width":139,"height":9}},{"id":"5271bd2a-c754-4402-afac-ee630c6bd760","block_type":"box","text":"Description of Shares","page_number":27,"box":{"x":69,"y":523,"width":156,"height":11}},{"id":"07e072d2-82a5-4f66-98f4-f1a0c53f3147","block_type":"box","text":"The Corporation is a Maryland corporation incorporated on April 24, 1998. On September 8, 2000, the","page_number":27,"box":{"x":101,"y":546,"width":733,"height":11}},{"id":"921f0640-c516-4041-9cf0-e198ffbcbe4b","block_type":"box","text":"Corporation changed its name from Mercury Asset Management Funds, Inc. to Mercury Funds, Inc. and, on","page_number":27,"box":{"x":69,"y":561,"width":762,"height":11}},{"id":"af604b06-55d3-4f1f-b255-790664e696c8","block_type":"box","text":"May 1, 2002, the Fund changed its name from Mercury International Fund to Merrill Lynch International Fund.","page_number":27,"box":{"x":70,"y":576,"width":780,"height":11}},{"id":"4cfc8f17-f9f0-4c92-b851-ba4a562d28bc","block_type":"box","text":"Effective September 29, 2006, the Corporation changed its name to BlackRock Series, Inc. and the Fund changed its","page_number":27,"box":{"x":70,"y":591,"width":836,"height":11}},{"id":"3a95b1aa-1d3f-4300-b6e5-5a6890136e5b","block_type":"box","text":"name to BlackRock International Fund. The Fund is classified as a diversified open-end investment company under","page_number":27,"box":{"x":69,"y":606,"width":815,"height":11}},{"id":"8e457e5e-2bee-41b5-9854-0f33497c9a36","block_type":"box","text":"the Investment Company Act. The Corporation has an authorized capital of 13,400,000,000 shares of Common","page_number":27,"box":{"x":68,"y":621,"width":797,"height":11}},{"id":"7ef21b5d-2ca1-4db0-9262-d8c3122ff336","block_type":"box","text":"Stock, par value $.0001 per share, of which the Fund is currently authorized to issue 100,000,000 shares of each of","page_number":27,"box":{"x":69,"y":635,"width":839,"height":12}},{"id":"fde9ccf9-c5bd-4ac7-acc7-5caa40e04a65","block_type":"box","text":"Investor A, Investor C and Class R Shares, 2,000,000,000 shares of Institutional Shares and 2,000,000,000 shares","page_number":27,"box":{"x":70,"y":651,"width":837,"height":11}},{"id":"1f484158-9a2f-4063-ae30-26ade625c2c9","block_type":"box","text":"of Class K Shares. 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The 2026 Annual Financial Statements have been","page_number":29,"box":{"x":68,"y":416,"width":833,"height":11}},{"id":"6c46c3fd-0fa0-4c57-8804-c0803c4dd42d","block_type":"box","text":"audited by Deloitte & Touche LLP, the Fund’s independent registered public accounting firm. The report of Deloitte &","page_number":29,"box":{"x":69,"y":431,"width":828,"height":11}},{"id":"20976cd1-50d6-42e5-8b96-3552860d213a","block_type":"box","text":"Touche LLP is incorporated herein by reference. Such 2026 Annual Financial Statements have been incorporated","page_number":29,"box":{"x":68,"y":446,"width":803,"height":11}},{"id":"d58cf733-813b-46c7-9e95-0e22ea77db43","block_type":"box","text":"herein in reliance upon the report of such firm given their authority as experts in accounting and auditing. Additional","page_number":29,"box":{"x":69,"y":461,"width":826,"height":11}},{"id":"adbac4a6-58b1-441e-aa35-1399064f988f","block_type":"box","text":"copies of the Fund’s Annual and Semi-Annual Reports to shareholders and the Fund’s Annual and Semi-Annual","page_number":29,"box":{"x":69,"y":476,"width":788,"height":11}},{"id":"0db0888c-bdf0-4241-9629-421333fcf94c","block_type":"box","text":"Financial Statements and Additional Information may be obtained at no charge by telephoning the Distributor at the","page_number":29,"box":{"x":70,"y":491,"width":820,"height":12}},{"id":"ff5aa5b7-64f7-43ba-b051-ddc4951d3287","block_type":"box","text":"telephone number appearing on the front page of this SAI.","page_number":29,"box":{"x":68,"y":506,"width":414,"height":12}},{"id":"b9628ee7-8091-4457-9bb4-56901fc1f8ce","block_type":"box","text":"I-27","page_number":29,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"dd71b0f4-fa83-45c1-a26f-82568df030ae","block_type":"box","text":"NM0926U-5975843-29/228","page_number":29,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"eda5cc55-0fe4-4de2-9cad-85039795a6e7","block_type":"box","text":"PART II","page_number":30,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"ffc35e76-7388-449e-aee2-e9398c6b376f","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":30,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"befb39f0-1aaa-4570-b1f7-90eaf514c137","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":30,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"b2f1488c-2601-43b4-af12-5d2b429d56fc","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":30,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"c722e35f-94b3-4242-ba71-af4eac46fbef","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":30,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"4bcdb8ec-3117-4539-b82a-acd71ef793a8","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":30,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"8804bf17-531f-460c-b35d-452ceca3deeb","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":30,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"782a6c70-39f1-446a-a1af-ba03d2454775","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":30,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"a36c5264-e3dd-4705-accd-144bf22adaf1","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":30,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"e5a65f1b-14f4-4784-81b8-cd2384380229","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":30,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"1b08912a-fdac-442d-a343-a428b6fa3da9","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":30,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"c0c4f661-dfd7-408b-9978-b51bd9d21eb2","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":30,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"f194a450-641a-4f02-85f2-b9fb511b189a","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":30,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"d8579f20-bf48-4354-8216-4c6f938896fc","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":30,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"d126a75c-7a75-4f8f-9e0f-c48933a7d9a4","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":30,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"87634db5-29e5-47cc-b2eb-1b2ff434ec13","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":30,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"f354ff8b-6c54-434c-80e6-0ec1dffb54cd","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":30,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"1ec3a4d4-3aa9-4f34-88e5-1dcaaf88d435","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":30,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"55470645-8ef7-42b8-9776-3bcc8a57fb6e","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":30,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"e24df1d9-ae3d-441f-adbb-2f3dabd708bb","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":30,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"4e5246d7-5295-4212-9029-34e0a40157f0","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":30,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"807de393-e193-4ce7-be62-ad28efd5c881","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":30,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"c90eaa00-4cd6-4b7d-8702-4d68a4879aff","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":30,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"8df66f51-5808-4b33-bdb6-7aceb4cdf09e","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":30,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"5d6f8d75-e4ef-4407-93bb-8bc6fdea1773","block_type":"box","text":"particular Fund.","page_number":30,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"3b308f13-f691-4584-ad09-b3b81b4ed195","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":30,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"3a2a5d4b-eb6e-4f3e-8fbc-d49045407bde","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":30,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"7e0e400a-b005-4730-956d-0399ff36ae7c","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":30,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"4492606f-322e-4d2b-84d0-7e3ac0df8db1","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":30,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"335c4e0f-9467-4c49-bc8e-b84c04c03d86","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":30,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"79dc4a62-1b80-4aee-89b7-18ce14ee8e16","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":30,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"3b5212b0-f6cb-4ffc-89a8-7d6cc3372651","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":30,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"f0f26253-276b-4998-a6d6-5781e45a99f7","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":30,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"836a7734-b14e-49c6-bdb5-13de7c94a646","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":30,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"880e1370-0e6c-459f-8385-eae9b3daf8f4","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":30,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"25de75be-6571-4b96-96a2-a69589097476","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":30,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"bd146aa4-62d1-41fd-b245-02f0acbc5c34","block_type":"box","text":"Asset-Backed Securities.","page_number":30,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"c8433b6f-e073-4b1a-a27d-28d224f4f5c0","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":30,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"038be4e7-735d-4583-9ec6-525535f13eae","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":30,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"b471d54b-ca65-4761-bbf6-701f5cc521af","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":30,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"76ced73f-2365-42b2-a77d-a077f8db9c84","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":30,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"3c9cec00-2500-4e8c-a3f8-861d84b028b0","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":30,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"15cf75b6-a0f7-4259-be4f-ba57856dd0ef","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":30,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"beb37b52-8f62-496e-a6a2-1d52aef9aeed","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":30,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"b90e8ee9-3692-402f-ba81-a357edf534ad","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":30,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"13de6c64-ebac-4bc8-9a87-bd6fa4b143d8","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":30,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"f5f0ad81-044e-4285-a2f7-30c7a44ccfad","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":30,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"5d109761-834a-4c20-9a5f-5c4b1e1746a2","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":30,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"5cfcff70-c49b-4e55-a87f-563fe8339642","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":30,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"76d9c2f6-eb5a-4f82-9b08-37b102f0e7ea","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":30,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"a7bace82-ea57-4cb9-b024-dfa4c43b7f17","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":30,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"e7d968b4-ee85-47aa-b439-7b0f9a79f6b3","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":30,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"d3ae95e8-50e4-40d4-8bd3-1a445025f83b","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":30,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"de06f908-6c4e-4de7-89d4-bbbdfaac9ba2","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":30,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"b752d3aa-c0bc-45a1-82a0-9e25e8c0add1","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":30,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"60ff9a10-134e-407d-9b51-b680ae734e4d","block_type":"box","text":"II-1","page_number":30,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"a204a70c-ee13-4dce-814e-73ef57082b04","block_type":"box","text":"NM0926U-5975843-30/228","page_number":30,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"56a5db1c-817e-43ee-9f0c-bc20fe3515b1","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":31,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"c31822e8-c04b-4048-8b98-89123a03e637","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":31,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"e6bdd393-0e5d-4309-84c3-b19f6ca7e479","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":31,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"53f9a0b4-dd93-478b-8395-9778bf166c0a","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":31,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"62393f91-3689-451f-9cc9-f39eb887ffb7","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":31,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"27a4d5a3-6699-4d22-89d6-2e3f52b623c4","block_type":"box","text":"Asset-Based Securities.","page_number":31,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"2a9ca478-b655-4b7e-aa92-fe1a0192210b","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":31,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"8339603c-19d5-4c0e-9466-014043f6ccb9","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":31,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"877d7901-7b20-44a7-8fb2-6ee6d3e5a8ad","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":31,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"4ccc70fa-2fc7-44f8-9825-b4dd471dd2cc","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":31,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"7ffdfacf-6d61-46a6-a1a6-b47d49bbdb40","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":31,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"1e8b4c45-32b3-441e-803a-2764217b2b0d","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":31,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"bcd4a225-0a18-4280-8f18-4786e5bef607","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":31,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"88d895d1-1306-4e7d-bc3e-657ad977c3aa","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":31,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"247a115e-8f5c-4f43-9087-567bf7cb1db4","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":31,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"d95e4cfc-15e4-402e-8e03-e3ce2ec8867f","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":31,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"95d73fb4-e134-4a87-afd8-d7db0ebb88d5","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":31,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"c90cfb52-8d1d-4b19-8309-b89bec8c997e","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":31,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"7a5f0ae9-41e3-4779-a4ad-2264d80c6f19","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":31,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"1bbf9a6f-4742-47d2-b206-6a94f2b148df","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":31,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"b0d08294-84eb-491c-aa1c-4581c621589f","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":31,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"92fee377-0512-4e33-bf5c-d253caeed469","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":31,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"0a7b1056-c935-4287-a1de-63fdd4075f29","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":31,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"cd2ad72b-edc3-4dc3-9d1f-5f490679e12f","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":31,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"bb570b91-98e1-460d-9331-065f20950526","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":31,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"43899e76-2b10-4b8e-8fb6-df5f3bc07451","block_type":"box","text":"appreciation in the underlying asset.","page_number":31,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"43a081da-f7cd-4add-b3fb-7d85860919f9","block_type":"box","text":"Precious Metal-Related Securities.","page_number":31,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"6e8d9079-fe69-4922-94d0-2a7c2f538a52","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":31,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"7cade7e7-5d83-4f1c-8f26-62881e0c67d7","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":31,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"d7b6e6ac-a40d-4705-a4da-e85da2a3ab2f","block_type":"box","text":"e.g.","page_number":31,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"c0f71ee1-d261-4560-b04b-21d86a6248ed","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":31,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"3189286b-d5c9-4c46-b230-04ebafd61064","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":31,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"d7406473-39a5-423f-9ce1-b8734c75d58c","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":31,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"c6efa894-3516-46e6-a1db-1e6c699bf861","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":31,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"bbd30d8b-ee96-48a6-98a2-324fad458e10","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":31,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"036d5502-d080-4a38-96e6-726723ec6a40","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":31,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"fdff7948-c82e-46fe-aa51-89cecbf7146c","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":31,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"313bf606-466e-4f94-9ce5-df2f7a12d63c","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":31,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"2c73ff5a-6119-4255-b33f-046a39ca8012","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":31,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"f0cd35a9-f678-4a2b-8ff9-97bf833ab375","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":31,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"d8ae416a-95ba-4462-b47e-a30b12d91030","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":31,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"cfcf573d-740f-43f9-bb56-6de3d5cc6209","block_type":"box","text":"South African gold production.","page_number":31,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"1430eaa6-bb85-430a-8e07-73c70d2b7fe1","block_type":"box","text":"Borrowing and Leverage.","page_number":31,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"4917f1c7-56b0-419a-bf59-a1e2e51647e5","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":31,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"f64207c8-8453-46b5-8cdd-1207d300765c","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":31,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"bcc1dae5-d221-4367-8975-e3d5c2a3cc89","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":31,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"ded5ca0b-39bd-4c29-a8b0-546096d596b4","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":31,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"1dfdf8dc-3f22-4d0d-9abd-a624a12745ec","block_type":"box","text":"other securities transactions.","page_number":31,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"193ae757-4f24-41be-b3cd-e03f5dae1400","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":31,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"19fda75a-5b6e-4d79-a64a-dc920945fa35","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":31,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"c64870c7-adb4-4a1c-a05c-8a92f937374b","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":31,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"e07bb8ca-a38c-4bfd-b576-1db3f4b620ac","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":31,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"292a8dbb-799f-46a6-9d13-200f45d0d2fe","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":31,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"22fb7063-a1c2-44b1-becf-087ebbcb4ceb","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":31,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"8c7980e5-9206-46e2-b7ea-7341c448d669","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":31,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"46ca9096-8ebe-4677-9bfe-a582181137b9","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":31,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"63e8a1d0-d350-48d6-9f14-7096611aef27","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":31,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"97ecca74-87c5-4a16-83b7-c325f177e0f8","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":31,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"9ca3b538-c4d7-448a-95f5-7c69c0d1298b","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":31,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"8058fe16-69e9-4066-87e4-1934efadc183","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":31,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"dd30b0ed-0ade-4cbe-87e6-f4b7411d90d7","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":31,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"100ccbe6-f221-4358-9c3e-2e14d9998e8c","block_type":"box","text":"II-2","page_number":31,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"4ea617c8-c31d-44b3-960f-e027bc948e45","block_type":"box","text":"NM0926U-5975843-31/228","page_number":31,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fbd71f4d-8fb0-4080-ae68-2fc5b8f41330","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":32,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"4621b0cf-35df-42f9-88ff-f23f7611ccaf","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":32,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"6d1a001a-f457-4ce6-9318-c99f9e80e22c","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":32,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"ea70ed7e-d2cf-4a47-b00f-f177ae55f764","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":32,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"45a82fa0-c721-44db-b2d0-8d7956c46953","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":32,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"6b0a9adb-55d7-4467-b90a-1a3eb9f1bc5c","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":32,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"ebcab7f7-7bde-4892-b3b8-cac802b984e6","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":32,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"e79c56dc-df29-46ad-bcb6-1bef043e630b","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":32,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"3975cf86-aec0-463d-99a9-19686391d1f6","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":32,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"4473a18b-b57c-4bc1-9df5-53337b1c6fa5","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":32,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"429edf05-dd60-4d0b-911e-40cf5a3731fb","block_type":"box","text":"Cash Management.","page_number":32,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"e5de6fc5-8573-43eb-b740-f0304e8a7ad4","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":32,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"1cc770f2-a94b-4701-962f-3828e6f9ba45","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":32,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"bd914b7c-6816-4744-bc85-1ca5e92ef4f3","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":32,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"5af774cf-79b9-46c7-ba00-f44264c4286a","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":32,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"736cde26-4aa6-406e-8d8d-33d142b6e6d9","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":32,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"568745b4-12b7-4bed-a438-8636f1a9d0d2","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":32,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"171fa3a3-961e-4a89-bf91-ec8b80d52ac8","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":32,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"f6b8d758-22cf-4cd0-8af3-1d51d940616c","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":32,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"69bef66a-8898-43cc-a11d-85882a92fdcf","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":32,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"26f31a09-d2ba-4597-bd70-d7e04176a6ee","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":32,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"c093f9fa-8b67-4f4b-9624-81b251fea704","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":32,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"6d1f5b9c-df64-4373-ad83-24b935fa2755","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":32,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"66a09937-bd10-4321-9ded-5c45b6cd89a5","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":32,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"2217892a-c6bf-404a-92b1-7360949f232f","block_type":"box","text":"Collateralized Debt Obligations.","page_number":32,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"4997f077-5c6f-4815-862d-1fa53d6384eb","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":32,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"0d67a163-0777-4611-9bbe-523c38592fcd","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":32,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"9914666c-d8fc-473f-a574-14d145c4b5e9","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":32,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"da289a3e-9f45-4142-a261-3274283c7d8d","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":32,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"a4f916dc-99ea-4f99-b325-3abf40f18676","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":32,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"e6b5a0c0-6fec-4749-b924-78f4b3a28319","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":32,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"ffdcc805-6e64-4ef6-b229-c441501a2cf2","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":32,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"8465b306-d264-469f-96f4-87e093e15db3","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":32,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"cf96dcf3-b4ee-4743-ba46-5d8d0059018e","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":32,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"6d442160-0e7c-4072-8a02-8fa26c02ef2d","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":32,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"5d1ff25c-c175-4bdc-9ffd-27ad864f565e","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":32,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"85afa36b-6748-458e-a92c-d2b9fe56b65e","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":32,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"e77b7a3d-ca09-4d60-bf46-2f56160cbb8c","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":32,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"8526703e-51df-4419-af10-4fc509be5b37","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":32,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"77f0a0ee-28ee-49ee-9970-d76a7644e60d","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":32,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"cd5d8665-effe-4b64-9fd0-07fe55fabb21","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":32,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"13bdcf30-cca3-446a-8b09-2a4ff2e3b78a","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":32,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"c81f0204-4362-465c-992b-a5751e2969be","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":32,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"b0bd6286-2c49-41d5-840c-85f3de339481","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":32,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"bee28ebd-f981-4e96-a27f-201672dae1e5","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":32,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"f6304287-01f6-4f2b-a808-89a813f4740c","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":32,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"818f4c94-a08d-4796-9512-33cc901d55fc","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":32,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"fc5835f3-9575-43fa-9f75-b782196b9ed3","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":32,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"3ea1171e-f9f3-4ddc-ae2d-c4dab7e22ae1","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":32,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"edb7c905-0c71-4f07-a3c6-7440aac9189a","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":32,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"db88b603-61da-4086-8b4c-fe7cb3c0b0f4","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":32,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"d4f2b762-460c-4699-8409-93509a220f86","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":32,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"fc680c80-b0b4-4f87-ad6e-543e7b8c84a1","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":32,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"6ed7e946-20dd-4f2e-9cd9-33ca16bc92a4","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":32,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"118efac8-cb62-4ed4-a203-1eefd142e200","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":32,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"4f121df3-6b72-4bff-9d0d-525eb33720dc","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":32,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c41931cf-8349-40a7-9207-bbdd51a7ab4f","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":32,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"4bc6974e-8a6a-4cfb-8020-f3992e039754","block_type":"box","text":"II-3","page_number":32,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a1908aa4-91bc-4166-a579-e7aa97d7eb20","block_type":"box","text":"NM0926U-5975843-32/228","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"291940cd-a744-48a3-bebe-3a5867e74cc2","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":33,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"fb3991a5-2335-4fd4-b9b2-1a560df6c234","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":33,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"ff39d59f-0dfb-4a71-8cbf-b78184dc56f6","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":33,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"44ff69f8-8760-4a45-8800-ebcf4cd0b261","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":33,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"75264ca5-0830-4154-a27e-96a35846f7df","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":33,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"43fd7a0b-5389-4ec8-8d7d-c5da59ab1955","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":33,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"00bb2d8d-84c4-41b2-82cb-e749878d77c6","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":33,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"810bed8d-9e82-431e-847c-0afa948c9199","block_type":"box","text":"Commercial Paper.","page_number":33,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"a080207b-cc1c-4a8a-8055-b6ea0eff819c","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":33,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"854416ea-63c7-483c-8153-3ed6ec56f151","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":33,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"14d409fa-b740-4655-942c-da6933f894f4","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":33,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"4194b6a1-d35c-422b-8f67-4b4bebfbbf2f","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":33,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"2f76b799-0177-4710-8549-fb870be6db93","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":33,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"005a5acd-4804-4f2a-b8eb-35ec31365bc7","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":33,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"1ddd5d50-62a7-4b53-ac01-7f575255b198","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":33,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"e3d8d605-470d-4773-bcd7-f21e15b779a2","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":33,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"8c35aaba-2fd7-468d-8692-a6be5baf502a","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":33,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"a4427dd5-b18a-4eea-8d4e-cb9c33d8b5cb","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":33,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"1cd4517c-b3c8-486c-a9bd-e15ddadd2414","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":33,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"c0cb5e3f-01c5-4aa2-be45-8466755c717d","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":33,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"b6204c0e-49df-4151-b9ce-30cd5e7c677e","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":33,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"23a62614-956a-4194-ad83-345bc96bbfd5","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":33,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"9eae6a9d-06f3-4380-a7a8-94c841de499f","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":33,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"bdd5b690-b42d-49f0-b3c1-7a0b617ba3c9","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":33,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"1d8de50e-b94b-42e9-b229-c6887c84aaa7","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":33,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"09ec7ce9-bd35-4659-a265-7de91ec5d3b6","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":33,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"4b863a7b-8b99-4655-a0cc-9b1a0c700004","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":33,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"b030fd40-0390-4765-a650-bc4e097f3f21","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":33,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"584228fd-da90-4fb3-b4c4-08f2884ef3eb","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":33,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"e71e3efe-7842-4644-be5d-b3c1a2a714b8","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":33,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"c10fc775-db0e-49d7-b1aa-48549ede5964","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":33,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"95e31cb7-c45f-48db-a5fa-1f0e1d7767de","block_type":"box","text":"variable.","page_number":33,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"608c283b-8847-4453-8799-bbb54b9e1b15","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":33,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"7df96e19-d90b-42be-abb1-840cbc8ad10c","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":33,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"d71a0ba9-b0e8-46d2-bde8-bf2c11afd4c6","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":33,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"195f377e-1aa1-4fb9-862a-59c0bb9fe3ca","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":33,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"a0eb0a3d-ca7c-40ef-a780-e525ecae37cb","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":33,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"fc0de4aa-8b30-4689-a796-226ef1488421","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":33,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"0231ffa7-999b-4472-9c57-a532855ff717","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":33,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"952a51d3-f998-48dd-9451-6ee9fd1787b9","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":33,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"4e77117d-6a20-4c5c-98df-07153711ecda","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":33,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"8f4aea54-08ec-4dd8-b2b1-d93d7d1f82d3","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":33,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"9192f338-fe03-499c-a8d7-00283bfc83c7","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":33,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"88878414-6f52-42f2-80a5-c20923f4fd8c","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":33,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"36a6643b-955f-41e1-bd75-6dcec341b612","block_type":"box","text":"correlation with stocks and bonds.","page_number":33,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"33462887-81ed-4b2a-842d-65360500fd24","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":33,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"b6def545-1e33-4398-9c21-4de2d29f296e","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":33,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"813bb4ac-73ba-4928-8fb0-db27131719f1","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":33,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"08e30d4b-abd1-44af-91a3-2199b0a34817","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":33,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"3ac0b107-b8cc-4295-ad83-999ad4c4460b","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":33,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"60c3b439-7ab2-4aff-a80a-f00792c529db","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":33,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"85599c7b-cc48-4569-8080-5e3a97932177","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":33,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"ca7659a7-e132-420f-b0d1-318408855a3a","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":33,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"a192c2f8-5978-42f7-8ca2-f1299e8afe0b","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":33,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"c68dba40-8e31-445f-95cd-329196a2fa72","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":33,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"69ffe780-c5d8-41de-8242-ce5ba43369be","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":33,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"45616620-629c-487d-87cc-d955090d97bb","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":33,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"b9dda65b-73e3-437a-8ec1-cceedbc16730","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":33,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"7c146749-3f7f-4521-98c6-410977c2e914","block_type":"box","text":"II-4","page_number":33,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ef52fe2c-530f-4dc7-8ddf-f3ac951ef4c1","block_type":"box","text":"NM0926U-5975843-33/228","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f5ebb23d-5f8f-4877-9330-379310083538","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":34,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"74071bfb-c927-45d7-b764-dfc4ab46946d","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":34,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"249f2405-b79d-41cb-9128-738d1703ab7c","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":34,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"305a8ecc-602b-4635-ae31-12b06e7a3d62","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":34,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"d655b033-3af4-452f-b2b5-0756f9ef9630","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":34,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"ab2ae420-4809-48b0-aab6-6c4cd4bcb8fd","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":34,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"b75380f5-f29b-4272-9eb1-1056bab16e71","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":34,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"729124c9-7d47-46d9-9969-a8b6a5a00647","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":34,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"d394e0b4-4ce4-4cc4-bb9c-5ffc6b0e64a6","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":34,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"d6930e8f-35e9-4fbb-83bb-ee8cc078ff40","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":34,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"a401121f-fa24-497e-b7ae-b9436deadd6a","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":34,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"edbaaa48-33d6-4dc6-b54c-81b99ad8ad4c","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":34,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"4be99bad-57bf-4239-9a72-2ff88596f6b5","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":34,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"bb9ba4cb-16d7-4a35-935e-cec0289c4517","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":34,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"77b654a4-c80e-475b-a533-d633d476eacf","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":34,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"e07fcd57-8c84-4cd2-b3c3-dd2a8eb15837","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":34,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"1310b923-5352-4a2b-a0cd-b8b7486cecc1","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":34,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"d6b96d3e-f177-470d-9ad2-caeb9c696ac8","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":34,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"2cf7de15-804a-4083-898e-6b6072a6ae7d","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":34,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"440cc95a-0c76-4cf5-8d13-f0a091de5da6","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":34,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"82c5dcb4-2389-402b-add2-0608008fd54d","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":34,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"fe317425-006b-442f-9f96-bd410a002c2c","block_type":"box","text":"the Manager believes are relevant.","page_number":34,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"d51ffe1e-d80e-4882-bbbe-8731a4c6b502","block_type":"box","text":"Limitations on Leverage.","page_number":34,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"f642d59e-e200-4d4d-9c2b-9c1e82815f16","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":34,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"8dbec0ed-4185-423d-a77b-f19a2f802edd","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":34,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"505fa182-1d5f-4b5d-ae1b-1ac6b90fe066","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":34,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"24fa9f3f-52ed-4657-bffb-8d5d623a9d6a","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":34,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"1be59315-5977-426c-bf55-7327910f850b","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":34,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"55a129e1-7baf-48f1-9cdc-8bbc00497202","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":34,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"357a9883-189d-41ec-955e-0583425f454d","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":34,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"7e1f0698-9356-4bc6-b9fb-97222dd766d3","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":34,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"d8ab6703-2f28-4d7e-92c9-dd8f625aca58","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":34,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"a88f1f1b-9353-4500-8112-d28c6197c49f","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":34,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"fffafb45-031d-4efa-a1d7-ed8ab901fdb5","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":34,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"d9579628-5f55-421a-b176-1888422cfc40","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":34,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"6681452e-fb4e-46d8-865e-411814d711d0","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":34,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"60e2287b-20bf-4bbd-a2d7-95d6ff1f366d","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":34,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"a000ac55-e486-44fe-862d-79a3407e15f1","block_type":"box","text":"Counterpar ty Risk.","page_number":34,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"0a5c09fe-49f5-47a3-956b-fd325af9f7a1","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":34,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"388e145a-9b99-4c1e-9556-406818c60c33","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":34,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"e03361c2-4a73-4e7b-aad3-a4f9e6032660","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":34,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"d7f2106e-8dde-4f3a-80f4-e623a69f8ccf","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":34,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"f3253e56-9fe4-40ac-8322-86e769dbb384","block_type":"box","text":"e.g.","page_number":34,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"a2a963c8-644c-4fa0-9e30-950ac441f822","block_type":"box","text":",","page_number":34,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"dd0a4049-ef48-40e4-bbc1-f2f49a1ed7ae","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":34,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"ca717068-eda1-4698-a2ec-30d6c9b223c6","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":34,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"9248c26d-1ba1-4b5e-aada-0ee258d49eca","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":34,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"afb00384-acbb-4da6-a080-21775eba6f30","block_type":"box","text":"obligations under the structured note.","page_number":34,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"bc74bda7-051b-4f99-bd30-07dab31f5411","block_type":"box","text":"Convertible Securities.","page_number":34,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"96916617-e2ee-4038-9423-ae4749d30cda","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":34,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"1a7250a6-2a5c-4342-a557-b3e5c266ccc2","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":34,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"9aa2365b-716c-4fd3-bea4-12b083a26eb5","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":34,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"a3e07c60-85fa-4b62-a2ac-67eb437a1512","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":34,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"68893c29-b0ec-4ff1-abb8-81ac546b3875","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":34,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"86a7e840-6a91-4b0e-b5fb-35d95d9b037f","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":34,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"5246a96d-734d-47c5-988f-4741f6ad59c6","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":34,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"a4358180-32c5-489d-a512-a42f7e175048","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":34,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"a3a79573-29ca-4488-8f09-1e5dbbc58951","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":34,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"c202c6bd-5062-4d97-b5c9-4ac760f0f76e","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":34,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"ef514736-183c-43d6-befe-36ceeb38bc98","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":34,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"7edca015-1593-4994-8680-0622c61624a4","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":34,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"364e0e94-1006-4c60-8d10-4cde87f1797a","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":34,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"0f3d5aa6-c4ef-40ed-8ac0-88267eda0803","block_type":"box","text":"II-5","page_number":34,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d5e8d125-13c7-4922-a0a8-87c160450a26","block_type":"box","text":"NM0926U-5975843-34/228","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"14c27444-e59f-47fa-a5e7-3525c689c527","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":35,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"fec32fe5-f8c4-4b4a-8bbc-b943373789d9","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":35,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"e6fa1728-6d30-4a2b-ac76-44ae6a624fce","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":35,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"15fd7367-3321-419b-b3db-8b50973d6c0a","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":35,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"9a6f5323-5eca-49be-8f09-ed770743a178","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":35,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"b2629854-75cb-4b41-819c-f303d2ee4e00","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":35,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"5508c10c-d024-4b33-92b7-e6ef9ce18d2a","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":35,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"f0d0c623-5608-4e86-8aa7-0802914b9d0b","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":35,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"eb0e3930-2f75-44fb-a95a-6cc4f0b5f989","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":35,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"19b6c1f0-d2cb-45c0-b6e7-2e52b4505b0c","block_type":"box","text":"things.","page_number":35,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"766c90d3-3f50-49e0-90d7-90d18e54bfee","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":35,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"b3e4e74f-3a1b-44d3-a608-d4e872fedca7","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":35,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"71bb317a-ba43-4a9b-9667-0bcd3758cd78","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":35,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"6803ec7c-6bad-48d2-a450-4a51a1210d90","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":35,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"eee961c7-b249-4697-a158-c317a9ebf3eb","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":35,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"d2943312-9c2d-443a-8d90-1344264b854f","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":35,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"d0f743e0-299f-412e-a464-6fdfad35b72e","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":35,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"dab05854-29d8-4b18-9250-08b8b97f2e78","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":35,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"a34e8acf-bf74-46fb-98d5-bba9f9c6cfa9","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":35,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"74ffdcbc-f840-4152-893d-6a101101ac64","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":35,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"7cb424e8-87f4-4981-b426-946400f89919","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":35,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"4619e105-ec77-4a7b-b844-cb51eedcbfa7","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":35,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"920c765b-e4ca-41ff-94a2-6ba37ec49535","block_type":"box","text":"i.e.","page_number":35,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"ba096f9f-46f5-437d-bd55-2e74705ee053","block_type":"box","text":", strictly on the basis of its yield) is","page_number":35,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"f3d10a82-04ef-469d-a4dd-1312ba821f88","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":35,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"36d22849-63c6-47c5-9cde-b9bc17817923","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":35,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"6d430695-2a84-4c5b-99c8-c7dc4540dffe","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":35,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"e5b78424-d90d-40d2-b02d-ce22d604fd77","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":35,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"2936bf5a-ed25-420e-8c1f-ab7839240bf1","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":35,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"52b4c74d-a5eb-4134-990e-63f7d71361d7","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":35,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"eafa23dc-c3f5-44a9-bc25-8fa51d4bfcd9","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":35,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"d71a0d93-13cc-4ee6-b9e3-b18358909228","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":35,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"49aabe11-20e1-447e-91b9-9c9d1c85f7e2","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":35,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"0046e523-c942-4b36-8b6d-b5f920f2fd62","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":35,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"cd18d2f3-b6bc-4edf-8297-8e78d6bff7df","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":35,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"f2a8f5f5-4bc3-475f-add8-bbc69a421d69","block_type":"box","text":"than the securities’ investment value.","page_number":35,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"e0013355-cdc7-456c-8947-2f5fc88afc92","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":35,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"01a1e0e2-3e7c-4618-a5f8-0d77196c73b4","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":35,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"850b87ac-b8c8-41a1-934e-d5d1fd699234","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":35,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"fabeb2e7-17c8-4196-bc06-a491f44c02f6","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":35,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"acb7b930-6708-4d09-a2bc-9be47cb1560a","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":35,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"a75f3826-1bc5-4eb5-99bc-170f9de15f36","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":35,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"bd0d6f08-3a45-4990-a530-6a2412d6e600","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":35,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"46bee231-a182-43f9-b6bf-45bc693d9798","block_type":"box","text":"security under certain circumstances.","page_number":35,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"16d24492-af5a-4eb2-b17a-4752932a10d6","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":35,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"077f1729-d64d-4c7d-be0c-0aa659422234","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":35,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"87903f97-baa4-4cbc-824e-7fe73a689201","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":35,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"e8b1bc9c-b85d-44f9-a7ee-998e32c0f395","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":35,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"0430251f-6a95-481d-93af-cc48f147b25b","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":35,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"d0686f50-efa1-4500-9670-fbe56c8d07d6","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":35,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"9ce5bae7-394b-4e8b-b70a-be150b980610","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":35,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"49268e89-522a-4ffa-a2d0-7be3cbb2992b","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":35,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"3b1353df-f316-431c-b58f-8a8c2c583ce1","block_type":"box","text":"i.e.","page_number":35,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"efadaa58-a1cc-493f-9654-de25b67cf550","block_type":"box","text":", fixed-income (“fixed","page_number":35,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"256ee9eb-c56b-41fd-8ddb-899fa0f0c078","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":35,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"5f180bcf-8fd3-4b56-a808-f0cb4ebfef41","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":35,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"fa06aa50-bffa-43e2-9aa2-ecbd6270ba98","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":35,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"0d3f2749-81ba-4004-994f-5fbd9db3a4a6","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":35,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"1284541e-747b-408b-986b-7dcbbfc6e777","block_type":"box","text":"II-6","page_number":35,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"376761b7-9b0d-4ac4-aac4-2a42f91e9fd9","block_type":"box","text":"NM0926U-5975843-35/228","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"89fac244-8b26-4775-8536-7b41faa69175","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":36,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"13806c57-385a-41ad-b727-a3f5e9dbe1ab","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":36,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"5d6ccc6d-f6ac-45e3-9317-2ab872824663","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":36,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"86cef584-0720-47e4-a924-5f7acc45a54c","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":36,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"1cf883b4-accc-4ecf-b1f1-8b3547833be6","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":36,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"2b1b4146-f805-4aa1-977b-be9da1c0e831","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":36,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"c38b0a12-4753-4f34-b121-cc6998f8c015","block_type":"box","text":"component.","page_number":36,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"9917d901-0b84-401f-9d11-eec4fbb66bcb","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":36,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"95d0f838-f9dd-4eef-a7a9-dea0dabf8fc6","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":36,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"490b5f8f-d502-417e-b991-7418b55f39f0","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":36,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"74c73668-857b-4cfc-8f91-0f2b78686c5c","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":36,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"69d96a6d-999f-49a4-b318-36df42a15907","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":36,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"3fc8f266-91e8-427e-af95-4c1cc3b2381d","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":36,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"a3b348f0-32c0-46ae-b7cd-1ac7dbb9c41e","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":36,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"4f6dbf25-563d-4814-92dd-ce0c9bd8220a","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":36,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"6b6079f4-99b1-4cb8-a5cf-7aa99e8a0d8b","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":36,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"6acbd66d-7e45-4d27-8b45-e8fe746864a9","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":36,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"f8b6eeaa-8579-43a1-9ba6-a57471b7b74c","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":36,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"6890c296-7f36-4a6b-b724-a573e081d40a","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":36,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"9799bfcf-afe0-450d-9a7c-b958e664c61b","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":36,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"f566e0a5-ecdf-471d-9db6-e585c036fbd5","block_type":"box","text":"favorable market conditions.","page_number":36,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"45de9f2c-e36d-4524-a8d3-e505171bb07c","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":36,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"1eb9cf3f-34fd-44c3-ad81-89a410379983","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":36,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"176a823d-bc48-43aa-9799-175d70f39f15","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":36,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"f61f2f78-5aba-485a-8d08-1e51be8e3a25","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":36,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"0249aca2-701b-4c2a-9b93-ae8193ecc7fc","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":36,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"5e555616-54ce-4ef1-8770-cf8aa0922265","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":36,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"b96a4a38-f257-44cb-96e1-c083d799a1aa","block_type":"box","text":"Corporate Loans.","page_number":36,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"b017644a-a2b8-4fdb-9124-fa57a846e9ee","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":36,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"74c6307f-03c4-429e-b2ae-d5bfc59707d2","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":36,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"68fee6a8-aab3-4a56-82f9-632ee068825a","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":36,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"c95210fa-f9bc-4cc8-b9cb-62730defb5e7","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":36,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"455a4129-4546-465a-82fb-e68f436d0e91","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":36,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"79b09b37-cdcd-46ad-a2ea-d38f3d2ff3e4","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":36,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"684b7911-9690-4862-8e57-2c96a4a65157","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":36,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"023780b9-409b-4c3c-8598-fc29c6e7a5f0","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":36,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"09ccecc4-32da-40ea-85d0-ec44d9af1bff","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":36,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"307d2f1c-bf46-4a14-8cb8-97cdb88ac856","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":36,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"f06f54a3-1229-43c2-9f25-0d9caba390fd","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":36,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"a0a1cab0-689e-4e27-a9fd-27cefdb3a655","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":36,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"9da096a6-daac-42dc-9bad-adc01f7b0b1b","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":36,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"176c0cf3-0f4c-4e94-9b50-0c40acccaf97","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":36,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"afd910c0-7007-46c8-8d7c-8592569d8ee6","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":36,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"252646ff-c57f-4169-969e-404e6423be5d","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":36,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"9853a1a9-5506-40af-a636-1d73371b0d6f","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":36,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"ac4fc081-d5e7-46fe-87b8-4dfe67fcf4fd","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":36,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"8b14818b-8b7d-4ed5-9770-7c464a4078b8","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":36,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"03cb9ed8-a8a1-4a0c-a042-53f7600e89bf","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":36,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"6e6fd45d-3d05-4c01-8d9e-c654bd09300c","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":36,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"28699dd4-35f9-4bb5-9930-5aad56e0441f","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":36,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"73fef3a4-616b-4fab-ae05-5ab065a403da","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":36,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"8d5b24d2-d9c3-464c-b6cc-739f608473c6","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":36,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"a78c5fc9-03c5-4263-906c-b49c907e0880","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":36,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"2d728065-d96e-4ffc-bae1-acf828607005","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":36,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"1adaadec-6719-474e-81d5-e631ee9ae961","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":36,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"7a26feb4-3688-4ba7-b892-10f57bb115f9","block_type":"box","text":"of the borrower.","page_number":36,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"9a65aa01-6719-4286-a8d2-f46b1f6af6b3","block_type":"box","text":"II-7","page_number":36,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"496bb643-e2b1-44db-bee1-3ce77d4c87ac","block_type":"box","text":"NM0926U-5975843-36/228","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a50d03f9-54d9-4f21-ae44-9622683a4e57","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":37,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"3c0e91eb-1e25-4b12-9180-1e47f7f10615","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":37,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"3935710e-b56d-417b-b71a-c4119d9e6ca8","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":37,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"d131d842-7f8f-4d0a-a11c-fdb029aeed2f","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":37,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"92db7b8a-1816-4bc9-95fd-38114926f5b7","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":37,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"71979394-4462-4f40-b54a-15aec8beaa9b","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":37,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"074ba508-4776-425b-be16-47591b014418","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":37,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"5923dbe1-8c6e-4452-a894-c577f58da16e","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":37,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"6c75316a-e056-4999-9d19-e57974814d1d","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":37,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"7bf497a7-2d45-4112-af4d-96aafc5ce12f","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":37,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"8c0e1f36-3b0b-4c96-ad0d-18db3344dbc7","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":37,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"9bc2c53a-f9db-420f-af2b-9130d08bce7b","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":37,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"eb1926b4-bbc4-4de9-90fa-50644d2590e9","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":37,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"f1c2adf7-dd4e-409f-b749-f1c90928cee9","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":37,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"60b5569e-8892-43ba-a6a7-b617f4dd1caa","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":37,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"55752a94-193e-4410-91ca-312e1654c1f9","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":37,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"7bc6cbfe-b18d-4dcd-942c-b75345bc3f95","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":37,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"7cf694b3-eb93-4d39-b202-26bd979a34f7","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":37,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"1929fce2-b5c8-4f8c-a9c4-163e4df61ea6","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":37,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"bb9f92ee-3566-4d1a-bac7-a906b427912c","block_type":"box","text":"state law.","page_number":37,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"8a1b7cb3-d38e-4aef-82f5-ce2cb315e9f5","block_type":"box","text":"Direct Lending.","page_number":37,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"b3f3c2f0-9795-4312-aa58-2fcc3caa3090","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":37,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"9d9ff9b2-8efe-44f9-8f0b-85c463ab3ef9","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":37,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"ae17cc17-d411-48c9-ab4e-565c4ed3bbbb","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":37,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"e7c80731-5a2e-4aee-bcee-80940596420d","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":37,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"9fdb5baf-115d-4497-a497-5ae5dc60b96f","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":37,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"b3a13e5d-0af3-46a2-a586-5a1f701d52c1","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":37,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"a3f56533-9d45-4908-ba3e-95bb98bf9298","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":37,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"9487add0-45ae-4558-afc9-cc0a97c10733","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":37,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"5ee5c823-0f84-45fc-b844-ef639d0a11d6","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":37,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"762b1526-b8c4-4566-8d85-7d180027e3bb","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":37,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"802606a6-e564-4a42-833c-1686482c2e4c","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":37,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"88466857-3dbe-4bcc-a795-8aba5373d8f8","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":37,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"f44a0255-5cd8-455b-bddc-50fae032f238","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":37,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"790f417c-7c41-4280-bce2-12626d5eb71c","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":37,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"ae29c1df-c4d5-4d79-8364-d49ec518b974","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":37,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"ed40d4d1-9bbe-457d-9805-e8c001bdffa3","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":37,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"94149156-7542-49b5-98e8-41f28187a660","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":37,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"671aa045-86db-49dd-8647-3a7c1b863f99","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":37,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"c347f10f-af84-4916-9c7c-ccb6daac86d4","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":37,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"1b6124bf-6a8c-45c6-b34d-dae324ab4b54","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":37,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"e3293143-48e1-49f9-8c6a-fee8f6235431","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":37,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"63582700-e584-4769-8503-0f49d10707a4","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":37,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"833add85-3ec3-470d-b0b1-3ceb4c5f4728","block_type":"box","text":"Credit Linked Securities.","page_number":37,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"08289ec0-1f0c-4409-809a-9452bd32d729","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":37,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"1d049665-6528-438d-b073-52e16a07e380","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":37,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"3cf44f97-b5f5-41eb-abe8-acb05c8b1a57","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":37,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"7fa31622-369b-4e11-8ad4-8065a8ed7039","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":37,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"84423c06-d6d6-4284-86ba-45d90635d365","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":37,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"fd9b207b-7916-4625-bbe4-7392d7c94ee7","block_type":"box","text":"traditional income producing securities are not available.","page_number":37,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"70954d53-b23c-43a6-ab7a-4449183e0668","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":37,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"a6a688d2-ef25-4000-87db-630892bc2cd5","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":37,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"f1a93c1e-ade5-4005-8a1b-cc23dbc234ed","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":37,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"55898a3c-0283-4ade-8de5-c4e6cbb28744","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":37,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"27905086-033c-4919-b354-e39bd5917bc1","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":37,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"c1345822-5993-4031-9468-f04469257c0f","block_type":"box","text":"II-8","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e5ecb859-480c-47d1-8cd5-1f45ed873fe0","block_type":"box","text":"NM0926U-5975843-37/228","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0a038ac1-150e-4f6e-8a24-a81bc5a2f3f0","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":38,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"5e619528-bb28-4d22-9f03-460678c25da3","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":38,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"e3dd7884-2533-44cf-b3d8-58dc74c6cad5","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":38,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"c2a485a7-edb6-49db-b4c3-33745e82dd83","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":38,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"c4c34fc5-c0f7-4e42-9848-5c5476d0666b","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":38,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"d4648ca0-45e2-4d63-9494-a1738d1667e3","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":38,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"bb7850b8-4784-4b63-bfec-fe525aedd3ef","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":38,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"6d33359d-3457-48d8-baa2-e6346a3ef9ff","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":38,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"1fd58b06-de21-449f-8d8f-09904a899abe","block_type":"box","text":"investments.","page_number":38,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"b18396da-506b-4c04-a62f-8c1cd84fb752","block_type":"box","text":"Debt Securities.","page_number":38,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"f771b196-65e8-468a-8c7c-0c55172b40b9","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":38,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"b2b90b74-c8cc-410f-b452-075ce472d89e","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":38,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"f65bb3c5-3dd2-45bb-a733-4529f42f2979","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":38,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"ab88d985-7da0-40a1-9b40-ef1714c2643d","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":38,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"c3e98e9a-d372-49a7-b40b-a4c8b984642e","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":38,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"e65ace10-f5c7-43e6-af79-83fc3ac61cd0","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":38,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"b704a701-e3b4-4c41-aecd-8fdd47f5e913","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":38,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"af4fd78a-f6eb-4f62-aa0c-be801d8218d3","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":38,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"aab85125-26d4-479e-ac7f-60e33dc098b6","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":38,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"b8b8c857-9795-464d-9d5d-931272bb73fe","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":38,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"8052aace-4510-4882-822c-f56f15958b0c","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":38,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"47f90806-9d1d-4e46-b02c-7bd66442c5b5","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":38,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"e7ea92c2-4bbc-4a51-9d09-8ab5b663a83d","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":38,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"f1e11cdf-4914-4812-93d5-8912db4ced4b","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":38,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"79919008-3304-4c81-9e32-1350c0309e3c","block_type":"box","text":"lose value. This is known as extension risk.","page_number":38,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"0751283a-896e-47cc-8a85-ad02edda77a7","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":38,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"d99c47a1-e552-42a1-9307-67474999f3e4","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":38,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"a3675a39-588c-41a2-8660-40198eb2fb9d","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":38,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"7cd0559b-2d00-4fb6-9eaa-62c7663f9eac","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":38,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"85ab556e-3e37-4e5f-ba3b-0730ad695771","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":38,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"d22513b7-be23-42c6-bd9e-057018b88f0f","block_type":"box","text":"Floating and Variable Rate Securities","page_number":38,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"e0084ee8-bb9c-480d-bec8-65ff1dbe5714","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":38,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"52b0c323-3a22-4c10-bc0c-1409ef5e6caa","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":38,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"127f7ede-5377-4e5a-b722-5584721f181b","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":38,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"e194035e-c28f-404a-a6dd-6e4c36282f92","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":38,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"13f1cf54-d6ab-473f-a206-24c388d783de","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":38,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"24157889-ace8-42b3-bcbd-297a2dd09bf8","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":38,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"36018a5c-c6c2-480e-8999-b7361f66f29f","block_type":"box","text":"market interest rates.","page_number":38,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"a603915e-b185-45d4-a490-e4332e1c4872","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":38,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"c59181eb-b4c3-40c6-b03c-cbbd54ebf50f","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":38,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"54b48e65-6d23-4134-8f37-0a9f867b925b","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":38,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"93148a92-2942-47de-8e27-21aa224404ac","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":38,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"00bcb46a-c8d9-4b64-8254-4dce43b6528e","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":38,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"1754e113-9f06-4e6d-8951-6dac22024078","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":38,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"084ac807-0c45-4a61-940c-7d92b28f4d24","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":38,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"1a3b0c50-e84b-4f7e-ad6a-cda3bf843594","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":38,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"a1e5d337-b148-44d3-99b1-8a04f010d1ac","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":38,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"ff894f62-8505-4f8f-a812-4f39c5022f4e","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":38,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"c4bc4de2-9874-4ece-82e4-4c748a6ca66c","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":38,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"6f73c457-4fe4-4a2b-bde4-4d866053ec63","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":38,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"bf15d7f1-5fda-494b-a898-f6e1de588cd3","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":38,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"a2af640c-377c-424e-8c05-d395597f0b7f","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":38,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"8f9db08b-a7df-4205-82ec-a6c0641ea294","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":38,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"f881ac8d-d338-41cb-a2b3-c58f2707c72d","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":38,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"1f4976fc-b3b0-4ac5-96e3-0e4e690501a1","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":38,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"ccd9312c-7e13-474d-a0e7-4b9eb9aea2a0","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":38,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"acdf31b3-c5cf-4877-9930-34f9377bcafc","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":38,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"fb9f4eaf-1973-4900-9327-366c6af6d4d7","block_type":"box","text":"II-9","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ca812aeb-34d4-4f54-b214-dd72745d2ca4","block_type":"box","text":"NM0926U-5975843-38/228","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"265d5933-6b83-4671-8730-b438d1ee338d","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":39,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"b2b2c710-1eeb-4a7a-91df-710c10c08482","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":39,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"b533d92b-38ce-4d2e-b1bd-fd00c4dff9df","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":39,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"610d0ae4-7ca6-43c7-aa89-bd769d90bc0b","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":39,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"cb52d783-6a63-4d50-be5e-f3d6298b6e59","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":39,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"3dfbd5b5-fabc-445d-9dce-7f042a2cbd52","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":39,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"8da2e0bf-df8f-4f9f-a46f-05427c0a651a","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":39,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"7d560a5d-a58b-482f-9e82-ed1e75d8298d","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":39,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"5c475b34-b81a-45a7-8149-c6bfd8e8010c","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":39,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"9c53a005-6fb7-418e-8634-d27306a02e44","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":39,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"527ce7cb-9e9f-4a23-b7bb-3fe6220b20ab","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":39,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"14e77de4-ba43-4caa-a9cd-1fcc7c874149","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":39,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"fb131e39-2ec4-47c9-8f38-e26be25df0c5","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":39,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"d1f0b14a-d70b-4a0e-8b51-e6ceec2a0d0a","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":39,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"a643df21-6d09-439d-a8ca-5b70d088821c","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":39,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"c7c02cbf-8914-4f62-adfc-9ce0aaa4efba","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":39,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"092f3b78-832f-4c7f-9273-f7fd45d5b513","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":39,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"7eb67355-d665-4754-a7e8-86cd82f5dd30","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":39,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"34acd148-f08b-40a7-aaa1-bae78e0895bd","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":39,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"3d04a66f-55d6-42a0-838d-d17904c558aa","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":39,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"bf3b533e-eda5-49c8-98ff-0d6d93ab919f","block_type":"box","text":"United States.","page_number":39,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"3de33d53-fe92-4029-abac-51aaa0689445","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":39,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"4f9c82eb-7e87-43ed-b432-041b18b6c887","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":39,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"c0df137e-0dae-4700-8bab-f5ad1660c005","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":39,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"99400040-a308-4e66-8560-cef3af235a4b","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":39,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"15dee2c2-a36d-4669-98ad-f509f165f20d","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":39,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"61cb2c28-695f-45ce-b938-0ee204f471e6","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":39,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"88ddeaeb-e721-4239-8dfd-e9c4ab0726a2","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":39,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"36d87d89-764b-4ebf-be03-dc10ac468d1f","block_type":"box","text":"i.e.","page_number":39,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"995eee13-20a9-4053-a0f4-eed876268744","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":39,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"ea27a53c-fbf5-4168-bdc8-5f89e970dbfb","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":39,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"153778a9-5b11-4d90-ae83-02780d663862","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":39,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"21ec1bf1-56ed-440e-b759-fd706f554032","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":39,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"4255afc8-2522-46c8-bf94-6dcdaa97569f","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":39,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"e2e6fd6f-1139-4ed8-9410-c2b6a0029fc9","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":39,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"c3077e23-5012-4fcd-a0c8-5c0eacb1d59e","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":39,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"6dcf2d67-d66d-4eb8-ad1d-8b569d122e30","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":39,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"6a77855f-7cae-4b88-ba60-e07894631ef3","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":39,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"61096d4e-68d2-4cb4-8345-1a319c95d0e8","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":39,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"f0fc911a-b4e1-41f0-bb7f-778ed0b0a455","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":39,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"dd8d715a-1ffd-4df3-a161-17eb54abd810","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":39,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"fd23bbaf-8e96-45b2-abf7-4f4aa1af1be9","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":39,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"5156d184-5c24-4a0a-9e75-6022ede69f67","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":39,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"6066cb3a-0840-480f-8fd5-15a3ee1b94ba","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":39,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"55160105-73b2-4525-9f04-837f7bd9e167","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":39,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"43ae9c2f-53a5-4fc5-8cac-295e22bf41e1","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":39,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"9709208c-ca7e-440d-9eeb-24b3c2b1dd69","block_type":"box","text":"risk than higher rated securities.","page_number":39,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"dc372723-2c02-47c1-be75-a2770ec8c387","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":39,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"3f5aa659-157b-4c3e-b30b-eee0bff9f9db","block_type":"box","text":"•","page_number":39,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"d1c5e5f0-0cbe-4eb4-922b-ebd7a1deb8ab","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":39,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"4f289314-3e8f-4dbe-8c57-0f705086feef","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":39,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"2e83d2b0-c60b-41fa-850f-0e25b3e8dd9d","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":39,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"19371382-7a04-49a1-bde1-875e5b736b38","block_type":"box","text":"unavailability of additional financing.","page_number":39,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"d0fc3f66-8866-4b05-8b7b-8d8a6269042d","block_type":"box","text":"•","page_number":39,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"d9ee4eb8-0c06-48a1-a696-99318af1ae9f","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":39,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"f4625abc-4e15-4605-ab0a-70a48742c187","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":39,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"19b741b8-525a-471d-8d4d-4c012b70dfc9","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":39,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"0bc12b69-57aa-4167-bb58-a0ac4346054f","block_type":"box","text":"II-10","page_number":39,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e1e1b0e0-4510-46df-83d9-1e47b07ff916","block_type":"box","text":"NM0926U-5975843-39/228","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dbf89d33-63d5-42eb-adfb-810f08315669","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":40,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"981c04de-0adf-4221-bda3-a0e6fb2e6239","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":40,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"cd1e4999-d406-4207-928f-979b28a1fe63","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"7171e078-ae31-4af1-b9a0-fe2d9e8fccd7","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":40,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"c2744016-c856-4546-90ab-0c5929b2719a","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":40,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"8d31aaf2-1014-4f41-9294-268c64029843","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":40,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"7e6c4d75-025c-4b5e-8fa7-b7f2be043441","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":40,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"e12e22b6-93eb-4dc5-acc2-e12d6212493b","block_type":"box","text":"investors in higher rated securities.","page_number":40,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"9472f6b8-b0a6-4e1e-a0d4-cde17fc24142","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"610dad12-cfbe-40a9-a713-4c47939ece83","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":40,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"40208cd5-f3e3-4939-a442-9301088d85e8","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":40,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"1cd91987-15dd-480d-add6-d82d69e013cd","block_type":"box","text":"lower yields and may lose income.","page_number":40,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"a28357cc-118c-4b5e-a049-537398f9a6be","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"3fd9e044-2630-4417-ae92-bfa778d8a1f0","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":40,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"f82b991e-295f-46e2-a4ad-fd94c6153643","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":40,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"cbdf2326-17c5-4c9f-86b1-7b0e9a01500b","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"5a05bf0f-6e33-47e3-adb0-89702b486397","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":40,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"0d8c39f1-4f63-4cbc-b7b6-11900972ee6f","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":40,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"2cb7adcf-304b-4aaf-b41e-02cf593d400a","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":40,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"dd9fb940-8642-43bc-a5de-96da8f2772ec","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":40,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"3aaf59ac-8924-410e-b3fb-46d7a3ef85f2","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":40,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"435ee202-8f82-432b-beb1-d5a52651589b","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":40,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"ce529bd1-eba2-441d-b4a4-7e23654dcdd4","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":40,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"2a4b952a-e282-4041-806c-27f9a569afb5","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"1ef1ea88-078a-4daa-aa77-a213f2402c90","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":40,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"c9e2da21-9b02-4689-be6b-bb9e6c11c242","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":40,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"b44f09c8-25cd-4079-b5aa-01a441d0e635","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":40,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"99f5bda6-dac3-4055-9b3c-cc1a87ddc796","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":40,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"ea8b7ace-6eeb-4a71-a5f3-0c8c4819a1d7","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":40,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"a9b9313e-c748-48c5-af07-dfc192573a92","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":40,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"01e27aa6-418d-47a4-a570-2ae69bf8f498","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":40,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"3b126a12-e1de-4090-b9c3-21b2f0173440","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":40,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"393e9ad7-17ac-4ed7-a7ee-07eac0984489","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":40,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"bdb93ac2-e209-4f2c-bd42-d47d51f387b3","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":40,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"7c97eadb-7ada-4d27-a78a-cbbf18ed9381","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":40,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"64f5fb0c-83b1-4dcb-980e-ed1610094183","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":40,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"6c780652-4b41-49a8-9b0d-1380c0914095","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":40,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"4e1aa6e4-529c-4ea9-ae8e-5734d3b6ae87","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":40,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"6eba7c6f-1f64-406e-92a3-e486901e278b","block_type":"box","text":"role in determining such valuations.","page_number":40,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"e177914d-7b4d-438b-9931-353a597e08db","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"c5385058-d709-4296-b1ed-001e8ecfe727","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":40,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"ab6d0700-5026-452d-8bab-aec02b7c4d53","block_type":"box","text":"a defaulting issuer.","page_number":40,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"e07208ae-3368-429f-9ae4-4e8644fc70a0","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"c6a2a62e-de00-40ae-a302-54f13fef6070","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":40,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"00a0fbc2-a077-40e7-83e9-da72c1abc680","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":40,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"d300e86e-37ea-45ef-814e-b58fe8bd6b5f","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":40,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"daba8d45-a07e-455e-896c-fa0ec5d60f5c","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":40,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"991169b7-d967-48d9-94a6-c7f4beb1ee89","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":40,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"3480daca-aea8-4049-8ec5-41000cae577f","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":40,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"0ec3368a-e742-4e5c-8a5f-8ca0becebfe7","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":40,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"c521ac50-32ce-4ac6-9d2d-0cb70149335d","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":40,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"08a84805-75ee-49f3-9fb8-cd88f0a4f25a","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"70ec8b86-12e8-4865-8a16-b1a957fd804a","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":40,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"37ff45bf-125e-492f-b43e-bac3d8d37f55","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":40,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"1cdf389f-c89d-4431-8a79-af5d89dd960c","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":40,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"3915d270-8a2c-44e3-a8c1-c671a2262309","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":40,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"321cf1aa-00e9-4451-9b5c-f6231f316baf","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":40,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"a275a508-0af1-4b0e-a682-748c7ef91961","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":40,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"2698c8d0-295b-4f87-ae92-580e17a58666","block_type":"box","text":"higher-rated securities.","page_number":40,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"c464e2b3-c048-4eee-81d8-16173fefd83f","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":40,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"01fb3587-40ae-4a15-bef6-47fade25a427","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":40,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"39f7048f-72d0-48af-9421-362d913847d4","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":40,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"9c986b37-e7f2-4e9e-92c0-d273eae61f91","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":40,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"1f25f9a9-de12-4683-bf52-7c72960c98eb","block_type":"box","text":"II-11","page_number":40,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"530d3cc2-aad7-42e7-93a4-40c387fc7feb","block_type":"box","text":"NM0926U-5975843-40/228","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0d39c978-56a5-448e-b048-22fef005dbff","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":41,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"01b53ace-e967-4889-a388-fe224f164906","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":41,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"843fda84-9ceb-40bc-9f45-7909cb27e81e","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":41,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"e97a9068-52f6-4659-a57d-aaea020dcd59","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":41,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"ffe74d84-8941-4d11-880b-c9e42b43f0d8","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":41,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"5880073d-0b5a-4136-8ba9-993d8a508c14","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":41,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"ff6d3097-97cf-4a0d-90ff-2b3f85687bb5","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":41,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"504dc71c-e9c3-4b6b-8b09-b7dd3224a000","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":41,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"00096e85-a824-4829-b37c-77ade8b8db2f","block_type":"box","text":"Mezzanine Investments.","page_number":41,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"c5688462-61d8-41a8-90c9-83584803ba27","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":41,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"06bad51e-1224-45bd-9d72-b7d4672edf71","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":41,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"bb58ca09-bec5-4e04-bc6f-447ac3c165a6","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":41,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"fecac6b8-f89d-4577-93ea-b8bb9bd3ad28","block_type":"box","text":"e.g.","page_number":41,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"f55da0e3-dda2-4c55-a69f-5ed03701db02","block_type":"box","text":", with","page_number":41,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"0fa88c1a-33a8-494b-af36-7b1c8e1fad87","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":41,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"dd686d2d-04fd-4304-ae1d-5210ffd690b5","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":41,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"c382565b-0037-4804-8314-b096036ca0f1","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":41,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"41d4dd90-b275-43b2-89cf-a815fb27bffa","block_type":"box","text":"other obligations of the issuer.","page_number":41,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"73c20ad1-cba8-4bbb-88a5-32d3f31e6c8d","block_type":"box","text":"Pay-in-kind Bonds.","page_number":41,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"a29ff20c-7c6a-410f-af32-60eae3499560","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":41,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"4f89b0aa-f0fd-4b61-a71a-6cc8a3d10c64","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":41,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"b6c7a027-9fbe-4272-a152-8f5e6870ce28","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":41,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"bbd0d284-ade9-4c40-b0a1-75f6e302bf06","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":41,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"5355f5a7-e19b-4fcd-951b-c6de72118580","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":41,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"79d39e44-4b47-4db4-beed-fe5d48862b04","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":41,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"3270c5de-5c6c-4080-bd8d-4ecc65e20387","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":41,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"8fdee53e-c474-4e76-b91d-b06d8c5b9e91","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":41,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"41c0ae04-7b81-45a1-b5cb-e00881a136b6","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":41,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"2f50bac1-48b6-4af3-bfea-73f0cd02348c","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":41,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"32abacdc-dd97-483d-b53f-dc8d0cb29ddf","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":41,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"2a7b9bcf-1755-4372-9e4f-97d59217836e","block_type":"box","text":"Supranational Entities.","page_number":41,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"cfd61191-4454-496c-b1b4-d62efd73e396","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":41,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"a7660a2e-f09a-455a-93c2-cd28b0d3f3ce","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":41,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"705bf814-023b-4da8-a517-ef6bb8938f1a","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":41,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"a4e81f86-c015-43e0-98e6-76c4c4a84710","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":41,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"7beafed5-34a3-4d7f-87d3-564be94615f4","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":41,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"babce27e-ba5f-4cd0-8306-ce7e8e1b2045","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":41,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"a1b9dffa-2698-487b-8e3d-fb0959b31b06","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":41,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"39211cb5-c59b-47c9-8152-77bb42be8dce","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":41,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"e016fd3a-67af-42dd-a24e-8219cbb98234","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":41,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"5ca29734-c039-4591-8e23-253cd9b4e6d5","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":41,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"3783553d-1346-4dfb-8b4f-83194157e4e6","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":41,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"a0a11455-ba93-4df8-877e-688127544299","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":41,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"8d05deea-ed23-4f3e-b959-fc7e1e2885c4","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":41,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"815e8560-57c2-49d9-a9ad-2edcfcd397de","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":41,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"2fd813de-3b6a-4cef-b214-5f31ef74bec7","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":41,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"24f411fa-530d-4f5d-b23b-555892045eac","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":41,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"b5f9510c-a79f-44ec-b8ed-525b4097c139","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":41,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"f2e2f4dd-bf03-4b93-b87e-8ab8ed586013","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":41,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"3616b301-762b-42fe-a634-17a85d08c0ec","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":41,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"5017341e-2383-40a0-9e2e-747a9bef203f","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":41,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"86f24bc1-70a0-4d7b-bb43-488ac69e99dd","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":41,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"40598430-1d99-4139-b3f9-99420bda6553","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":41,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"ef4969c5-06a7-45ac-8a17-f80a3f5f1655","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":41,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"579bd3a4-bf36-4f80-8e47-c2debdee5349","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":41,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"f1561ab1-d804-4520-ab88-6f0e04e93057","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":41,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"d17c87e5-8c86-40c0-8dec-6caeee5990e9","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":41,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"bef3519d-7db4-41b6-bff1-021fde480f68","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":41,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"527fd530-ef59-4858-943f-7769c94df048","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":41,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"ffe8eb67-876e-43b1-a379-71fa4bcc3043","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":41,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"fa399ead-2713-469b-acf6-f23cdad2f4e0","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":41,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"5533be18-9fd6-4e33-8029-05855b0dabc2","block_type":"box","text":"II-12","page_number":41,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e8e7b6b8-3f56-4a21-9ad7-250f807b7f28","block_type":"box","text":"NM0926U-5975843-41/228","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"08a4409e-843a-4d2e-8bf6-6ace319f9213","block_type":"box","text":"Derivatives.","page_number":42,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"310a0a40-7885-4d8e-a263-6fa105cc9466","block_type":"box","text":"General.","page_number":42,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"b2d2f86f-a8dc-42e5-81a5-c0730a743b87","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":42,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"86514189-71f7-4485-a73f-b72ddcc5be30","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":42,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"14100134-e995-418d-9487-89b2d78a8c6f","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":42,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"c971673c-f3b7-4409-921a-fb9386ff79ed","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":42,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"487b648f-9d6e-4bdd-9c83-3e52f9357fdd","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":42,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"38f1b17e-2ced-4c54-bbfa-ef2e8bca2678","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":42,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"cf6910ac-69ec-4517-859c-2a3282eb7742","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":42,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"8cfb01b6-c245-4c9e-ac3a-b6730cc05209","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":42,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"34fd4009-17f9-4368-92a5-57667007f5c3","block_type":"box","text":"i.e.","page_number":42,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"e4b100b1-c38d-4541-83e2-78e583d91edf","block_type":"box","text":", the payment","page_number":42,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"faeb5958-eeea-46b0-919d-0e703a61b662","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":42,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"e9024ed9-bd1e-4430-8f16-a6959fc2ee31","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":42,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"535ce6cf-9f2d-4798-abb8-f5ff610f7c18","block_type":"box","text":"Hedging.","page_number":42,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"04f94f72-5731-46f9-97df-40c8d02a4fd5","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":42,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"ad6fbaeb-a925-4af2-b63b-d2179e55e942","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":42,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"838f3e22-670e-45f0-acd9-23709b26b589","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":42,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"8d4f1f14-78f6-4629-9973-dbe8416a116e","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":42,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"43c9a227-2c68-4a36-813c-9c4e50cf2095","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":42,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"1ea60c05-941d-4df3-84c9-0711eadeae96","block_type":"box","text":"correlation risk,","page_number":42,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"233e538a-c3f9-43e1-af5f-5a188a9dcdba","block_type":"box","text":"i.e.","page_number":42,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"b3b05c8b-985c-417a-9b94-3472d7765eff","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":42,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"43f0114f-6d73-492e-92c8-564961c0d44c","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":42,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"07237095-623c-4567-be98-3dc8bc35366e","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":42,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"4d19a9de-ab08-4a36-9b60-7eb8e3f54028","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":42,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"b5fcb8d3-1c5c-4823-a279-08b1d08fe67a","block_type":"box","text":"Speculation.","page_number":42,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"82ecea70-43e7-444b-b4be-ca8b519098e6","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":42,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"0d095057-5989-40d1-be43-092eb29329b0","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":42,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"50e4905f-f10f-4444-a70d-50e29b200208","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":42,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"1725d0a9-5e1e-402f-966a-18e6d299c4f1","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":42,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"dcc1d7ec-52a3-4a7a-ba46-83d6c48cd041","block_type":"box","text":"in certain cases may be unlimited.","page_number":42,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"5b0017d7-e65a-4d0f-86b2-ea088b906f6a","block_type":"box","text":"Regulation of Derivatives.","page_number":42,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"40ebbc33-2525-4f43-af49-d163f0ac3010","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":42,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"fcb24c0a-9ab9-4d0e-b96a-01d7d6a7c4ed","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":42,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"16ea94e4-13ea-49b6-910c-b481009f30e6","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":42,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"45b17e28-d5ce-466c-9972-df714a4cc54f","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":42,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"f32001e4-14e7-4213-acb7-b424abe18cff","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":42,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"b3e93f94-df2e-4023-9a2f-7a3489405ad3","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":42,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"ed65473f-4ef6-40a8-97a7-a17b67adc622","block_type":"box","text":"coverage”).","page_number":42,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"f7955c8c-cfc1-43d0-a7da-eb657275e7be","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":42,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"99d2de12-0483-43f5-b888-86d6e90b979f","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":42,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"50821cef-06c3-47f3-9448-64ffb981e5d5","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":42,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"82606226-8bfb-4d97-b932-1067944c93ea","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":42,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"fdd06d9e-50c3-459b-9f7e-22be85eff0ea","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":42,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"60a20128-94a8-401e-a683-8be3157d286f","block_type":"box","text":"financing transactions (","page_number":42,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"aa6b8c6f-afb1-4cdd-9cb2-67220ff68982","block_type":"box","text":"e.g.","page_number":42,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"60d6390f-6c5a-41d4-b239-fad88ff58b5a","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":42,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"59c32775-7e7c-4169-9103-0e1918ba542f","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":42,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"24f0547c-97e0-45f1-91d2-cab3dfa7f3a0","block_type":"box","text":"securities (","page_number":42,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"34ed9e67-e2bc-4d94-8540-b81064303724","block_type":"box","text":"e.g.","page_number":42,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"6e2ae778-6ab0-4c53-afcd-0016771bafd5","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":42,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"33cd220b-f4b2-44de-b867-a30fbedd0484","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":42,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"24f85cbd-0eaa-4cf2-81a4-1f75947f3435","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":42,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"c2cb4fa8-d1fe-4972-9ea4-220b6024ed49","block_type":"box","text":"Commitments”).","page_number":42,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"cb9d6e8e-f5ac-467c-8915-9051afcfece6","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":42,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"eac2bd0a-97c7-4456-98db-b60c61cee199","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":42,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"ff6740c1-e6fa-4a22-8469-8311789e52cf","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":42,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"e6eaa6d5-0201-437f-9db0-e2028b8fc412","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":42,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"e7aa8977-b37c-49ee-bdbe-b0810715719d","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":42,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"8516bd0b-82dd-4fe3-b43b-716c4a732e60","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":42,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"cc3f82a4-8ef1-4d00-aaf1-01ea7c6cb5f9","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":42,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"d18c09ff-c617-40ef-839d-36629834c306","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":42,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"79ef1b39-578f-4d8c-bfc5-2242c6f18214","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":42,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"319e167f-404f-4a26-bc89-1ce335a3aa36","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":42,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"6ffe3837-9be8-4715-9836-f8fd8847fb09","block_type":"box","text":"II-13","page_number":42,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e66d2316-d3c5-4c96-bde1-50cd4ec69bdc","block_type":"box","text":"NM0926U-5975843-42/228","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e62c0e21-7c02-47ec-acc2-c649269cb70b","block_type":"box","text":"Dodd-Frank Regulations.","page_number":43,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"98d8da58-3f0a-460c-8082-05600c975759","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":43,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"d3928046-b755-415c-8a21-2eeeae8ebef5","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":43,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"15416a38-ea8c-4457-8519-ca6014b2ecba","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":43,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"18649528-a5c4-4ba0-b66b-241365b424e0","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":43,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"c2358d1c-48ff-4af3-9b23-0e244a637544","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":43,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"ff0b56a5-5cf9-48ed-8c33-56438115c728","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":43,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"46e42ec2-b6f9-40f4-bd9f-a8949ae1e2dd","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":43,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"59ff6434-fa10-4b1e-ae4c-ec255ce5871b","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":43,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"3335b4d5-3b7c-4a3f-bed2-812b5f4b8606","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":43,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"48727aaa-540a-40c2-aa14-f054b38f057b","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":43,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"5203bfaa-b2e4-4dc2-b6e2-b8422609f211","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":43,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"3f941943-a023-4c22-8014-86adfd46fe01","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":43,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"1a97b936-2f89-4e32-9b57-815e2a7026ab","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":43,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"063b33f3-0433-4761-9356-dc71c83063c4","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":43,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"9c69ee29-b217-41d9-96ef-573ec680e0f6","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":43,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"6c613a5b-4435-4b00-9414-28d3ab620df8","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":43,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"abf8bec1-50be-40f4-b670-1c7ca9a369c6","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":43,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"f1100953-4c93-451f-aaa9-422ee2b5bec8","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":43,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"1729552b-ac00-4cfa-95b6-00b6f13571e2","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":43,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"51112920-36d7-4c3b-9789-a465b561737a","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":43,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"bfda52ae-8b9c-49d3-a118-5b66ad488d5d","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":43,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"be4513d1-4764-474b-9898-398da8b0da9e","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":43,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"f3b33138-3fa0-4163-a4c4-7fd040c49024","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":43,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"599497dd-de32-4574-bf91-5a19b47146ff","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":43,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"f54499bc-64c1-4494-90de-fad6f4eb5ec5","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":43,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"b4a63a17-2b52-441d-bfb8-e1472b7288dd","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":43,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"fc465db8-4787-4cf2-888d-637e2d7a2135","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":43,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"008e4c8b-a061-4b51-b0a0-cce967c2745d","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":43,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"65c00398-fcfc-420e-83af-7613df379841","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":43,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"0d4b0207-0b9a-413d-b7f7-b92d5dd065f0","block_type":"box","text":"member.","page_number":43,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"bb153902-5e70-43e9-b611-cdb5deaa3194","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":43,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"a63091aa-9b08-4c14-95a5-4caf824303ac","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":43,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"066b7544-349b-47d3-9805-5632e034dd0a","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":43,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"90ddb313-d18d-4e2b-8fc5-4b69553449d4","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":43,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"c8a4cc8e-a232-429a-9445-8c495c68aa37","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":43,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"5953a755-c47d-4c2f-9fd7-fdb7fd9437d8","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":43,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"e7cf4489-ccf6-4faf-91f2-e4d2fbc5eb33","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":43,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"dd256332-5637-4372-befc-2e5e1e80924d","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":43,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"cbb71c98-7c16-41ef-8734-2c7ddb796d8a","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":43,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"3d3d5f29-dc02-499b-86d3-1fba2cf894f3","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":43,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"a4e2d299-d9c5-44b1-83be-38f9d3bb79da","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":43,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"8819e9e2-3141-4692-9f3d-0444df7a8131","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":43,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"83db8ca1-8612-4ec4-bf68-97b28ad0dce4","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":43,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"706b975e-c9e3-4d0e-8da1-1559059992a0","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":43,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"b0c6f6c1-d896-4bdd-96a2-94e3b4f190ca","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":43,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"9509c1e9-ca67-4208-842f-4b182ed0580f","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":43,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"906e8aa0-c392-43d1-9844-b2fb2e8a87d7","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":43,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"6c5da1d4-d267-4ec9-b485-7b631e3cad47","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":43,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"a7767bba-61f5-444f-8c8f-14f090fc9545","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":43,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"4ce167b7-7f99-4877-babe-eaba447fad04","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":43,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"b8f2c5bb-ef4b-4814-a624-972d5b9cc546","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":43,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"2944f1bd-2f09-4235-8f97-3b09c20afa32","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":43,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"da5cbfea-cc92-4ded-8501-99dfb6d4bc7b","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":43,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"3f1843df-a6ce-44cc-b44b-08f2835b4b7f","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":43,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"7d2cd9e4-d362-421e-a193-3e7d19c1b094","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":43,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"9fe5b311-bd2f-410f-a919-612dc04e856b","block_type":"box","text":"II-14","page_number":43,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d7b2c4d3-445d-4ac5-93ce-a00a37d6e3ec","block_type":"box","text":"NM0926U-5975843-43/228","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"04585196-251f-4ac0-92d7-af3afb280f76","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":44,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"1d28e2c9-9920-4760-bb62-82520a1ec91f","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":44,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d18f2865-b912-420e-8414-ef8217dd9782","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":44,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"90859792-1397-4f73-b68c-c9acb1430344","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":44,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"f9cee5b4-5520-4636-91e3-049f554395ee","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":44,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"a5358cd3-f71c-41dd-95fb-5c202fee095e","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":44,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"276c3c70-c390-4c82-88f6-6e9ef81cb8b5","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":44,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"e343b4e3-9844-4f7e-86df-406af2db3b7d","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":44,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"5dd4cc11-3eef-4131-b81d-b808eabdf30d","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":44,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"24d1a23d-87e9-48f8-8daf-f44ce75b8d33","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":44,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"1326c0bc-2faf-459f-8277-85e5040254d7","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":44,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"7bac21dc-d559-41bc-9d3a-9d71da1595e6","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":44,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"c5e1f08d-2d05-4c35-920e-937cf4d8f193","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":44,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"ba6060fb-1dcd-4266-9887-a6b257030acc","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":44,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"7084f0ae-a631-4ab5-9bb3-8ae1a5f3fec2","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":44,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"7d10afa3-1cee-452c-a796-3b23be9f3fe4","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":44,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"1c57e99a-2b76-41b4-a7f9-c9a7f2f7b6be","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":44,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"153acdce-dd4d-4947-b36e-71def038d4a2","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":44,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"2e4cb1a3-6311-436c-b78e-6126bc55d2ef","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":44,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"0ef8c298-83e5-4cd8-bd5a-0d1f6b4dc0bf","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":44,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"fae550e2-3b98-4d58-873d-e068c6f4bf57","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":44,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"dc0ed9a5-cd8f-4a41-a898-085149fec173","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":44,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"9435854a-a8d7-4ea8-a58f-73706189f4c4","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":44,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"9ab03557-cb68-47b4-9bff-2754f10d52b8","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":44,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"2ed7ce80-852e-4979-a827-3409ba71dfd9","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":44,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"574c4a13-c237-46a9-862a-ec9d9853684c","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":44,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"75187fda-6be3-4a66-adfd-932468daf725","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":44,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"3d5df849-8aee-44ed-90ff-d23d66408e11","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":44,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"77ddeef1-470a-4662-8dcc-f478b18b462b","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":44,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"f75385f7-ebee-4f6c-8cda-c993781a9260","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":44,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"f0a711cc-bc21-417f-b8e1-fb06a9f7c021","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":44,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"58d8fef3-f369-4906-90b4-c70b1e55410b","block_type":"box","text":"collateral received under such contracts.","page_number":44,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"7ddb38e4-3417-4fb2-9559-d89301e5ece8","block_type":"box","text":"Risk Factors in Derivatives.","page_number":44,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"c3a31f6c-5b19-4960-b6b0-d88d521159c9","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":44,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"f89007d4-b433-4964-8598-59248a48180e","block_type":"box","text":"Correlation Risk","page_number":44,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"3fb8d878-6c9d-4f8f-989f-2c67b7e25be7","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":44,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"b69244b9-9938-483c-89f5-3d1cef303535","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":44,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"ae8e1630-0bd5-471c-8242-0f6f6f71a402","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":44,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"e9305540-7c9f-4abf-9860-bdfd0665f41b","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":44,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"f280efd4-3e5e-4c23-9677-deba5e28d04a","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":44,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"03a2142e-7b9e-4f8a-a060-e1f80722585c","block_type":"box","text":"Counterpar ty Risk","page_number":44,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"bbf68ef5-9f19-476b-b95e-ed168ad3c1ed","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":44,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"205a6322-8829-4081-b333-635b006ed581","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":44,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"0cfe978a-87ff-46f7-9520-318bed6e86fc","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":44,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"248e4677-dbbe-4d96-9abc-548ef4989cdb","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":44,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"50eba992-ea3d-40ad-84fd-4f370eae40d4","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":44,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"1ddf33df-e8ca-4291-9f73-4dd6e3a71427","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":44,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"5368cd3a-cb06-4882-9ef1-42da94cfa080","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":44,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"3c7981c6-9960-48f9-8b20-d422335821d8","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":44,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"d1ae5481-c24f-45df-90e9-590975895895","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":44,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"e381e5c0-f51e-47fd-a66f-ac583d880447","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":44,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"4f5761b9-1188-4c62-873e-e9ca516ed233","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":44,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"4f186dd5-30ed-4d20-8826-bc2cc66ea790","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":44,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"14306417-273a-4d8c-b275-570159ba8973","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":44,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"1c3aefa1-b765-44f3-ad5f-994cc2de8680","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":44,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"3453f44c-b67f-4bf4-a312-47df0f0b6cd7","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":44,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"47789b52-5bac-47ea-bbf4-f121dc5f5ee6","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":44,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"10ef72ab-6ae1-4ddd-a16f-ed23d904944e","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":44,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"9bf0cb51-4244-47fd-afa8-dc735bf0f16a","block_type":"box","text":"II-15","page_number":44,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8da133eb-19e6-4116-b8d2-adac73e44821","block_type":"box","text":"NM0926U-5975843-44/228","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"535e9659-3072-486c-b730-c452e16d9ba8","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":45,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"b24b48f2-567a-47d5-a040-7b550f2b48bc","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":45,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d52ca1fa-4386-4119-8519-aa1d090f3fd0","block_type":"box","text":"by the clearing member.","page_number":45,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"2ae587bf-dace-4681-adce-036b145d7c3c","block_type":"box","text":"Credit Risk","page_number":45,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"a3e560fc-ef7d-4e72-8496-225d880c7573","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":45,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"8572fbfd-ad26-446d-884b-0750fc09a0a0","block_type":"box","text":"honor its financial obligations.","page_number":45,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"86d490cf-30d7-4efb-821c-a6ee47557aa1","block_type":"box","text":"Currency Risk","page_number":45,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"a9b475a9-8242-45a9-957f-ddcf4826c751","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":45,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"2256b471-f907-4ced-a7eb-ca1de4e58f1a","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":45,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"efe89aad-3764-4def-a852-1cc77939116f","block_type":"box","text":"Illiquidity Risk","page_number":45,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"f06772b6-2049-4a2b-af84-13a55ba4c98c","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":45,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"118888ac-a3db-4ab9-aa68-673b8b56a7e9","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":45,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"612b881a-cffb-4f51-86ff-84e5d798044d","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":45,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"f7d0001b-1d2e-467e-95a3-6dc63c0b60d0","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":45,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"e9b234e2-f38d-487f-a547-2f45c1563fa6","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":45,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"1eb38890-5289-44cf-acea-9b99c4c6cb37","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":45,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"562c6c69-ecf6-4378-8698-73512d264de9","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":45,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"268d3fe0-6aa9-4a39-ba32-078c55161512","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":45,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"d6d403a6-ade8-4bd1-ae85-3c5f78d5612c","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":45,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"bbc51a86-e8fe-432a-a94d-9cc072dce928","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":45,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"ea3eb7c6-2aaa-4e91-b303-4052c9895725","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":45,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"5c48e391-2e5f-41e0-acf8-c72a5b8f7ed8","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":45,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"58aa18d7-062d-4d7b-8ad3-13bd34153934","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":45,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"ac648099-a9dc-4caa-81d1-b45a7a5d9d95","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":45,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"ecd737e7-ca1b-45bb-8b80-f35eaf8af59c","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":45,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"94134d4b-c76e-4662-8b35-5c7a0e774aa4","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":45,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"04737628-ad48-4ac4-8f9f-1f5d53f9b5e5","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":45,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"da67ec0e-7612-4642-ac21-68d8be07ebaf","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":45,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"8213fc0d-c698-4551-9549-5c2cdc3c51ce","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":45,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"ee9ff6d7-0959-4fb6-b8fc-3c2630035675","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":45,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"3c67040e-75ca-4fbc-8098-fa20e057ff86","block_type":"box","text":"may be disadvantageous to do so.","page_number":45,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"5ee06db1-eb5d-4b6a-b726-7b8b1b882d0c","block_type":"box","text":"Index Risk","page_number":45,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"86898e15-6415-4ce6-9190-1fcf34c5859f","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":45,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"7eff3c25-1e41-436a-aecb-fb989186aa28","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":45,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"f59f0b1c-5862-48f1-90df-24fc33192fe0","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":45,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"9dd541c2-6d2f-450c-84cd-7b2ccd496746","block_type":"box","text":"Legal Risk","page_number":45,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"5ff733b2-65e5-48c7-93f5-950ad81b2c71","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":45,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"29b5e901-7c19-43a1-9bdb-11e4a2b9995a","block_type":"box","text":"or enforceability of a contract.","page_number":45,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"0e592ae8-c8cd-4f11-80d1-a249dbb97cd7","block_type":"box","text":"Leverage Risk","page_number":45,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"69218700-d8ed-4e72-8104-3faacfc021e7","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":45,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"8acfed16-11b6-426d-a74f-6973507efe5d","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":45,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"d7ca877e-198a-47cc-ac12-917e29a65148","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":45,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"74e5f0ec-1d25-4523-9e2e-9a5d2fa9fa5c","block_type":"box","text":"Market Risk","page_number":45,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"e187565e-b3a7-4102-be5d-890d73d79f08","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":45,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"ccf8273f-3dca-48ca-93b1-8497ab16ffd3","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":45,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"26d3c2ba-55d3-4119-8cb7-84d5762ab3ca","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":45,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"b919f9a9-c3ed-4817-ba51-2ba67b033f20","block_type":"box","text":"affected.","page_number":45,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"342487a4-fd71-4ad8-b67a-f7840b21a4c6","block_type":"box","text":"Operational Risk","page_number":45,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"68913623-7054-4373-b5e9-7c3193909930","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":45,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"79e4358a-604a-43c3-b6b1-c63f8a793881","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":45,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"e307b02a-fe7a-4777-b1d2-51040d3c81c5","block_type":"box","text":"Valuation Risk","page_number":45,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"29230d72-1983-4ad0-a2a6-9affa04a2026","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":45,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"141223b8-d742-4423-9eeb-6395b5f3a225","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":45,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"466d5cc6-9176-4b61-a40c-16fea9600e05","block_type":"box","text":"complex instruments or quote prices for them.","page_number":45,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"8214e3b8-be65-43d1-b24a-6665ab0417ae","block_type":"box","text":"Volatility Risk","page_number":45,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"cbfd5fc1-8984-47e2-a375-ce989253175a","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":45,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"a9710833-064c-494d-9290-905f08adce29","block_type":"box","text":"Types of Derivatives Transactions.","page_number":45,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"d729890a-dd97-4d1f-a897-5ac2cdeeb0da","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":45,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"8dca697e-9aca-43be-8b91-316b596ad8b8","block_type":"box","text":"including the following:","page_number":45,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"a1da840f-cb5b-47de-91cb-0161860d75b1","block_type":"box","text":"Futures.","page_number":45,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"26a1accb-2ee6-44db-9ad0-5044165e3b9a","block_type":"box","text":"II-16","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c4862f4e-6a0d-4c79-a606-3f25e5716664","block_type":"box","text":"NM0926U-5975843-45/228","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fcbe25eb-cfa3-4bc9-8486-426e5fad798a","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":46,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"db1ce98d-468b-4828-9cd0-ddb34476377e","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":46,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"a737157d-00c0-42c2-9c2c-14dffc5d784f","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":46,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"94c571a8-67d7-4d57-aadf-a8509320da25","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":46,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"34bc2872-5fdb-4515-b724-d4dc92bdb1e3","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":46,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"ab8b852b-2d15-4bac-9726-b281ebee7db8","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":46,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"8cabcca2-8ff4-4832-bb33-b14428a1cd60","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":46,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"9c66720e-ac96-4278-a793-09d9c86643dc","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":46,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"7b5552ea-390c-43d4-8896-341ac42d6a33","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":46,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"7f71af74-dd98-4e2f-acc8-da11dc400ac0","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":46,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"801c0e52-2123-47e8-aba4-4cb14d4994d0","block_type":"box","text":"of the futures contract.","page_number":46,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"64d6c841-6efe-4816-95c3-47f218960607","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":46,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"77e8d6e3-fdc6-4f78-b8a4-1d82394e30b4","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":46,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"0a8172fc-2f39-4b51-9e66-238ba3e3d585","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":46,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"856b7ef8-a36e-4216-a8a9-3cd1096a03e4","block_type":"box","text":"relating to the futures position.","page_number":46,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"28cc195c-db34-4cc7-bc05-5b3846a2cd14","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":46,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"f2424e7f-b405-45d7-912b-7b426cf3bfee","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":46,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"db4bec19-04a5-4e37-ab72-a64381af7b23","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":46,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"c2301531-2a38-4a70-ae64-68e4dfa6d47e","block_type":"box","text":"Regulations” above.","page_number":46,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"d1658141-d573-4748-b840-5a0f0a9c44e2","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":46,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"4f442f55-20fb-4da4-88d8-4bd268d4a88a","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":46,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"427b110c-7457-4c6f-917c-03609347b8a8","block_type":"box","text":"(","page_number":46,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"9b2bafdc-19df-4011-b694-e110c7a347b3","block_type":"box","text":"i.e.","page_number":46,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"b7c168bc-4f86-4013-866f-c73bc5d8b196","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":46,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"cea300c2-99fa-4baf-b891-deb1da3f872b","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":46,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"1a36f418-693a-4ebf-9ae5-5bbea878a014","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":46,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"3cba96b1-017e-40d3-a0fd-a67f6c695025","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":46,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"2195c1bc-99ff-407c-993b-d0ba25ab6e91","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":46,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"48664ec2-a446-4ef1-aa96-01dfbbefc0d0","block_type":"box","text":"Fund intends to purchase.","page_number":46,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"b125d607-927e-4992-aff1-b449e812e85b","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":46,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"8ab85a09-744e-47a5-8b72-47e1a7c116ba","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":46,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"f4f56da4-e1fa-4b0f-a9a0-61de1ad4a43c","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":46,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"edf5461c-2367-4793-a16a-4357d66fd458","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":46,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"e944e0ad-c1e1-4e63-9dac-ce8fbee291e9","block_type":"box","text":"illiquidity.","page_number":46,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"b0079bb2-c8f6-4357-8032-b9a2e4d5d928","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":46,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"69e82ed2-94ea-4899-a285-fe596ea3c996","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":46,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"9f62ca83-1744-4cd7-881d-f76adabe3cb6","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":46,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"e78f9d6d-6a37-4a91-8e9f-e1bc95878341","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":46,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"a93e304b-6525-421b-b275-ef72807bc17e","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":46,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"2a5de4e2-2604-408e-b02b-8be98f687381","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":46,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"e6d8b15d-0d13-4194-819d-2299c38f48e3","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":46,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"9a1cdec0-6e23-4e21-8cc5-af8b3b730b47","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":46,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"b65acc58-2fcf-4cb1-a53b-bfdaec6b56e0","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":46,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"920c07b1-0d1c-4c38-ab17-1c822f1ad4c0","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":46,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"52667dc1-071c-47f4-ad8c-44623556c39b","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":46,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"41d9cab3-67a9-4bec-8c94-b91ac2c72c17","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":46,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"42ac5d2d-08e0-4561-b7cb-784d73c66ee4","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":46,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"266f2bc1-4ea9-4e55-bc71-33edc3b27e39","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":46,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"2133fd8f-aa48-410c-b50d-e551b26f385e","block_type":"box","text":"Swap Agreements.","page_number":46,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"71975398-5384-42bd-a3af-cb4b776e9166","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":46,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"555d44b7-1c32-4772-99c8-15b9e857d3e2","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":46,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"c4db5140-92bf-4e18-b079-50ebd79a4168","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":46,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"13760a6c-8439-450a-9e00-3fdf7ebf29a2","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":46,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"8b9852a4-e0eb-4679-be1e-908cbbcc7205","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":46,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"52cd5ad9-1bc8-40bb-929f-ea24cc694615","block_type":"box","text":"a “notional amount,”","page_number":46,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"331ad705-e5c2-417b-8c83-854ababfcaa7","block_type":"box","text":"e.g.","page_number":46,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"921a88ff-93e2-4873-8875-4d309042e783","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":46,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"53810628-b6c4-4747-9a21-68b8f2acf5ad","block_type":"box","text":"II-17","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"99d27bf3-179e-4b7e-b9c4-ae302c5d8ff6","block_type":"box","text":"NM0926U-5975843-46/228","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"74e54de6-16a1-4ddf-b37b-289c73b535ef","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":47,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"5a6b43ff-9a36-4696-965b-bac35f86a821","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":47,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"5aaae79c-0c22-4cc5-822f-036096432122","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":47,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"4bf56a08-17f9-4b99-8b87-3bcd2c2d85e0","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":47,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"5de47e1f-783d-4fd6-9bdc-a89a935ae9e6","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":47,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"724df27a-6b58-4d3d-8eab-36dc8010e67f","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":47,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"62b0e162-f158-4b18-bec9-d3df5fa93b22","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":47,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"97c5d8f0-6809-4005-bc8e-3a7a905f7b5a","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":47,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"d164ddba-4ed2-406c-8e5c-a626319c85bd","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":47,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"6be44e03-2855-4c7d-a901-82719f430f2c","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":47,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"945bbc08-e2e5-4e59-a060-4c76e5372af9","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":47,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"54dff134-f974-4add-9580-5f2fa7e61775","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":47,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"70937551-d0ee-44de-a7bb-65d05a129e7e","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":47,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"f4e69caa-d710-43c7-ba99-2e8aa5d0e19a","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":47,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"fa0344d0-d551-434d-ab6f-cbec05ea6b48","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":47,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"a9ba84e9-d78c-48e9-ba82-2bccb130b81a","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":47,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"98ca25e3-e441-4872-8a80-56b8d3c22920","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":47,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"8836e97f-ba78-41ab-b741-1d1c64527899","block_type":"box","text":"index CDS.","page_number":47,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"b90ecd25-3c46-44c7-a5b3-cd45cdd42d46","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":47,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"7ef5f955-6e22-40ef-8ea0-9f0462e08450","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":47,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"782472e7-6581-4b87-8286-f73094785d6f","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":47,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"5f1d7d13-b5d2-41ad-86ba-325b260b1bb2","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":47,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"8b1632a6-795c-4738-9a27-b98e6ca4cecf","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":47,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"c3820b84-2a82-4790-a144-e0c61887bd01","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":47,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"3b98b88b-bf76-425d-a828-87cf84bd835f","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":47,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"91b9bf13-9b6c-4906-810a-1318d1a0a718","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":47,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"3d97f829-9f05-4153-b419-0cdc111a1a4f","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":47,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"a3abcdd9-010d-4d30-add4-65ed8e6d40b8","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":47,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"82c906a4-7758-497a-8b12-35ea8f6896af","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":47,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"1adc78bd-5e70-4ba0-9479-25cb3e7fd4c9","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":47,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"98feb4b4-c906-446c-a0d7-7c085dac4159","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":47,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"4f4bf8dc-292a-4c55-8d6a-d997aea5170e","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":47,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"78c9b3df-a82c-4173-93a4-380d86c1fc4d","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":47,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"23d5a35f-224e-467c-9a41-c50b48fb62a6","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":47,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"a9a97524-e8f6-4276-818c-c56c0738d604","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":47,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"99ee600d-fe49-4dcb-aa00-1d911ec08b3d","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":47,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"4106fe1a-5c3b-442d-a009-df009146f0ee","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":47,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"dd38b610-a1ed-43cf-99c3-01b2cd3d47a3","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":47,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"bf866661-182b-4f57-9f4f-c438b84df59a","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":47,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"5df89d13-3f14-4a5b-bea6-f25f60270d9e","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":47,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"6e2e3d86-78fb-4d2f-9422-06e809edfae8","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":47,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"1fa05987-e98d-46fd-8fda-f6974ab4442a","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":47,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"d3a2e38a-3463-4420-985e-7176bce979d4","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":47,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"6407093c-9d57-4e70-a242-94b23f8f0d09","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":47,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"6202145e-d0ff-4a32-b85c-ed1771860f2c","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":47,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"a68e2256-5fa0-44b4-b5f8-6202da02b003","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":47,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"3f86d608-bc61-472e-9c6d-85cc2a1ff423","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":47,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"8eb64c0f-8c99-4a9b-ad10-a889c973c9e2","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":47,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"4a76d8d4-e154-4c20-bd01-2e4879fe31e0","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":47,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"1d032e05-1e6e-4e3a-b9a7-2049daeb0145","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":47,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"24abd68e-ec9b-44e6-9a38-4ad68e7d3974","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":47,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"58c54cae-02d6-4be1-a4c9-1d163fdcf92d","block_type":"box","text":"conditions.","page_number":47,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"19956938-f7a5-475d-a5b3-cd11b7e79fa4","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":47,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"7743ec62-a74f-48f5-90bb-ce0fcc4028b3","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":47,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"0d18f3c0-9e4a-44fd-ac1e-6dd8c2484c81","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":47,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"e3a9b7d8-460e-4d7c-ae60-442bb83674a0","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":47,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"861d3fbc-d336-4c1a-97fb-35fb29ed613e","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":47,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"7bf74a16-bdb0-4d36-a022-785bedc279b0","block_type":"box","text":"II-18","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4dd5480e-dc15-425b-bc61-727fcdcf5f5f","block_type":"box","text":"NM0926U-5975843-47/228","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7a8d4d16-7cea-4515-95fa-acb5cffcd69f","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":48,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"4660725d-6152-4da0-bb1b-e1cba894fb73","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":48,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"aa69d250-3fa6-4354-b4f5-228aa7e135e3","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":48,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"133f337b-4865-4368-a284-e276651138a4","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":48,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"73502068-fd22-4f77-88b9-77bf69361653","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":48,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"f054c27e-823d-4c8b-b795-90e738f59946","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":48,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"d94d7fed-6ee7-405b-beab-2e20e9c2aae6","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":48,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"87bdaab2-332a-4357-ae27-2338f805a6cb","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":48,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"144f0ad9-619a-450b-b3ab-2812ef52f263","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":48,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"655748b5-1585-4067-97a3-a0ed27b7a8d9","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":48,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"dd2b4daa-12f9-43bb-a167-00b2a911f719","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":48,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"c97fed36-8f04-4a06-9fb2-6beb3d623a97","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":48,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"1c127491-0197-4985-93c3-f63a1da2543b","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":48,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"514d3e58-2cdb-4982-aac3-04b3f3ed3abb","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":48,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"4baff96d-0b0c-4a9a-98b5-c53ea4e2c3d7","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":48,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"91b699ee-9e62-41e1-920a-058a86ecbafd","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":48,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"018e9bb6-d81c-4ed6-b670-49dc49b4f726","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":48,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"d5874ef5-da5e-43ea-a068-5366f3ee1374","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":48,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"83792888-d36b-4be9-839f-2a4e9041ba03","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":48,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"a211d493-6722-4b86-9bbd-72a82c2bc59c","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":48,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"ab6ac791-6c49-4bb9-86e0-fef03e433127","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":48,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"164e499d-0afa-47c0-913b-7d31c3f62ac2","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":48,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"1b092ef6-68e2-4525-9a7b-7cacfcf81799","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":48,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"222b2695-db33-4192-9783-58d32648241e","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":48,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"9b7039f6-a5c7-437f-bfaf-581a59095bac","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":48,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"baa6e8f8-4ce6-4878-ad03-177b56d58abc","block_type":"box","text":"cleared interest rate swaps.","page_number":48,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"7bb1efd0-0b67-4e9d-b8a7-8a73fa9f2934","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":48,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"7ebb48d2-6f0e-48d6-b34c-a699cbe67fe6","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":48,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"670fcfbc-583f-4d59-89ef-9e1372e46c39","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":48,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"ffe471d8-a2a2-49c6-a454-d84e1a38dc0f","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":48,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"5e40dcb3-d4bd-42fd-8d27-188b22dd97b3","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":48,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"6828ee7f-b0b8-47dd-b508-faa6059bb201","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":48,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"f9af8182-82df-4274-8d5d-31580aacbd8b","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":48,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"bf66b16c-840e-4aca-8c12-5ec1ae9730ac","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":48,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"2bef25f2-36b3-48f8-a889-e110edd0a79b","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":48,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"57058dba-cccd-4932-9b1e-b35c950fba70","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":48,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"bdec5f89-ee06-4e69-8e81-9cb601d5ee5f","block_type":"box","text":"or variable interest rate, index or asset.","page_number":48,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"a10ba161-30fd-451b-a4eb-7f6875cb96d1","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":48,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"b5d4d91c-db89-4416-88d9-a5c718f47a26","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":48,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"61060272-175d-4a17-b9d7-c82ab303d5b8","block_type":"box","text":"such interest rate floor.","page_number":48,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"6a38a8ee-10ad-40a0-b663-76174d92802a","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":48,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"9aa7e53b-5766-4a29-9a30-c89d1e33d0cc","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":48,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"9ab2458a-3c8d-4014-93bf-32c7aa520dde","block_type":"box","text":"such interest rate cap.","page_number":48,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"65460809-9265-42ac-8075-b535d37f334f","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":48,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"07b7b64e-b7a9-492b-abfe-13bb46b9aa6a","block_type":"box","text":"commitments to pay or receive interest,","page_number":48,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"f68298df-a06e-4b1a-8b78-ad8f4fa0b595","block_type":"box","text":"e.g.","page_number":48,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"954f9d12-ce74-4dbe-b44e-a2ff60ffa853","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":48,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"435c48f6-e003-4375-85eb-b49eb77b7798","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":48,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"ec775db4-6914-4690-a048-52e5c1cf0465","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":48,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"c0bdfbc0-4e90-4af4-84bf-aee151d46e3f","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":48,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"4147aa0a-2cdc-4d66-b138-fae29c05374e","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":48,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"907a3d8c-7031-44b9-bbeb-96854da83a9e","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":48,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"5049cf7d-d16f-4355-bd46-da32406386a7","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":48,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"b28c9fbf-89bf-4a12-b48a-e33fca8795a4","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":48,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"0e98ecf4-b86f-4aa4-98e6-13ddf331be4d","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":48,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"03e30cd3-1714-482d-bb12-94f2df472b8c","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":48,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"50ea1505-a390-4ed4-b215-72f7fb919bbd","block_type":"box","text":"II-19","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d3a42f71-0738-4d76-9797-2dbc8a2258d1","block_type":"box","text":"NM0926U-5975843-48/228","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"26b837a6-1c08-4f8f-9b9a-67b5387bd68b","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":49,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"b3936fb6-8905-49fc-bb8c-0e3e005bb983","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":49,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"5502f619-2e3c-4bfe-850e-b5877189f22d","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":49,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"a623b1fa-bdc8-4d4b-9f9d-800f1917b6fa","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":49,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"47eaeb3b-62ef-4dbc-a3d9-466d9e8c9a93","block_type":"box","text":"Total Return Swaps.","page_number":49,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"15a6e1c6-c8dd-42cc-ad04-316c2ecd8ead","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":49,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"bf959632-1f7e-4b81-b8a3-bdc53b7a1993","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":49,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"b81d8c82-652d-4f3c-8e3b-1f635ff4d93c","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":49,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"db86ccf9-071b-4cd9-bf44-f0dd0c74df3e","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":49,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"367b6be3-d510-46f8-adea-59c1cfa2b5e3","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":49,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"91b11ed4-27ce-4190-887f-4a6aa08c522b","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":49,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"01732ced-47af-4adf-aba8-20f181ebb5dd","block_type":"box","text":"“contracts for difference.”","page_number":49,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"4568d250-5717-4505-bd06-d794f3c4e51d","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":49,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"135f8258-c3e4-40fc-80fc-23458bddc85d","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":49,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"5063b8ae-c8dc-4752-9d54-382a28384c4b","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":49,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"6187e0d2-893e-4195-aeb6-117af6b76d59","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":49,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"87c17fdb-14d8-4631-beda-c94c6dab550b","block_type":"box","text":"the notional amount of the swap.","page_number":49,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"e27eabd5-98cd-492b-8715-e7d9d4877cb4","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":49,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"e2a33cce-7f80-46ca-a976-db314f4cbb35","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":49,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"2ff81a48-a281-4dfc-880f-54d64cdb51d0","block_type":"box","text":"Options.","page_number":49,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"e9bdb5a5-bfab-454c-acb0-948a53f14ed8","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":49,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"83aec7a0-bfde-4caf-bcd3-bf671d2c236d","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":49,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"996d74f2-5fb3-4169-9bd6-7614bb278c34","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":49,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"2f337869-12a1-44e7-b20e-f45844e91bbe","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":49,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"1c6636c0-2c76-47b8-abee-08aaaa9c82fe","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":49,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"449e589d-5983-450e-9eb0-c8f852cff5dd","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":49,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"93e97666-6f06-4e8a-b1a6-3c3b9c7c197c","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":49,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"d7c47d81-a1c7-4386-8619-0b643e5aa07a","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":49,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"b5826f4f-f1cd-48d9-8bfc-4a459100e32c","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":49,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"f1b5e5b7-14c0-4fd2-9741-a07f1f420baf","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":49,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"896accfd-d3a3-4fda-93e6-bc380ea8f563","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":49,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"3cf8c97d-6b1c-4192-afb7-507717f52f36","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":49,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"1709cf33-0d90-42a3-8a73-8014a462a1b3","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":49,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"1d23feee-686d-454e-bd19-086773bc7116","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":49,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"0923d3b5-8b39-4121-b6a4-d2127c0f6079","block_type":"box","text":"OTC markets.","page_number":49,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"9093bb7c-15e3-4e46-bca6-af7d24a1acd5","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":49,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"cda0644a-49b3-4bba-9758-07adbc9a9cfc","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":49,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"b17ac3e8-6100-45cf-9d69-ebab1a4a744d","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":49,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"c44d5b87-ca2c-4db1-80c0-a77c5dc00d82","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":49,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"3b384202-3ce9-488e-9ac1-9aa4b8880388","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":49,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"7f801611-e09d-49f9-9c44-0040fe293636","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":49,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"b2ea2366-81eb-4a58-9ea6-29f43908c0e8","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":49,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"a8a64e7b-8192-4142-9af9-7a073cf57cbb","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":49,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"48794cba-aadb-4cfe-8275-cfb0e3f1bef7","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":49,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"5e90c130-7daf-40ec-819e-e0a09136e856","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":49,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"8f31e31a-d90d-4da0-95c1-a79f8cff9b42","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":49,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"80fb445c-8074-43ae-bd4d-24da5c078c95","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":49,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"40a2f9e9-e55b-4862-8c21-44ed6f4c2c20","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":49,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"a1f5a09b-13e0-417b-a5e6-6250c13af0ef","block_type":"box","text":"terms.","page_number":49,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"8d47e424-bcea-4325-bea9-92c5fd92a523","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":49,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"c9afd7cf-7234-493d-a09b-4dac352b343b","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":49,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"2a952a87-9b46-4c21-9f18-4a2ba0f02ab1","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":49,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"f8f3dfbb-e227-4cb2-9378-09ab1b2c0058","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":49,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"90929f6f-0713-4dd5-a925-600c8e2356b9","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":49,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"12517be4-5667-421f-b4f7-d0d1588328be","block_type":"box","text":"II-20","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"199371f5-b8d5-4ef7-88dd-10640fc8c437","block_type":"box","text":"NM0926U-5975843-49/228","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6e595f50-665c-4fd8-a613-7243a4f2da84","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":50,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"03159edc-0fc4-45b2-84e7-180b52e121a3","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":50,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"4442b007-ca52-4c73-8ee5-0bb2a8edcb6c","block_type":"box","text":"Call Options.","page_number":50,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"fc917623-d5ce-4736-b9a8-8d7968b70466","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":50,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"6c4419f7-24c8-41b7-baec-56070b252496","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":50,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"258088eb-4caf-44a3-bfa8-dba173372139","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":50,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"7c10b071-2882-470b-8540-85aef025fbb8","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":50,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"ac453c9c-75d0-4730-8c41-4e9df3f0c083","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":50,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"748c7376-1de7-405f-8cb4-8e1a05bcbe66","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":50,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"8630f4e6-7b32-43b3-a680-434f5c1a58a2","block_type":"box","text":"of the option.","page_number":50,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"69881d3f-9431-451e-956b-b2dc14f63d0f","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":50,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"86d5560c-92d9-47e3-8565-76d424e312d2","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":50,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"6f466541-78db-4d4a-9931-64fae52f736b","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":50,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"8865f467-bd56-49c1-8dc9-66f8b3cfb071","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":50,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"a5864815-b603-49ce-8b5d-91c799c65d8b","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":50,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"603f5cea-c195-4bdd-a3a0-537aff84c39d","block_type":"box","text":"A Fund may write (","page_number":50,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"8ca2fe35-6636-4564-a9e2-75ffe420311e","block_type":"box","text":"i.e.","page_number":50,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"becbe971-d0d9-4820-be01-584700ea128c","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":50,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"4b4bcffb-1641-4133-b152-92eb60fc7385","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":50,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"83a5ef36-1ed1-48b7-abd5-f5dba8aff85a","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":50,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"e67a5576-f3de-46f7-aaac-5f380d550c78","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":50,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"df3f3c96-3f6e-4596-a58d-dc5fa0ee3f90","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":50,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"73a9bbea-d3e3-4777-a390-ff445fd7aabd","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":50,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"2fecea64-3fbe-4601-b633-24a8237a6e74","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":50,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"6d946985-b794-44e5-87d3-cccafe9ac405","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":50,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"b382cf7b-62f0-4b12-8b05-65c6274a6faa","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":50,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"a4ff1039-79af-471b-b65e-52bd55112ac1","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":50,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"8d7d4c76-2b02-4a16-8af2-cdd91708be60","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":50,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"15e77ef0-a6dd-4676-b8fb-a0162e2506c8","block_type":"box","text":"A Fund may write","page_number":50,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"7258f3be-d4ab-46c8-964a-1849aa2a84ec","block_type":"box","text":"(i.e.","page_number":50,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"dd27337e-e857-46bb-ba03-6dbd837e6ff8","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":50,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"8cac94aa-c10d-46d9-891f-a0e2e9b8b4a7","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":50,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"4d4dfd3d-9778-4d29-bf53-5986f2a70130","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":50,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"ca78654a-04b2-47a9-bf89-1d9d080c7130","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":50,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"fbe16ec6-c4ca-45f9-87b6-bac6c66222a9","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":50,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"0e79442d-51bf-4bcc-9df2-1641d41dc4fe","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":50,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"c771af76-5c5c-468a-8338-609c1f74b781","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":50,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"e61a3d57-eb04-4c52-8639-37a9ab4da80d","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":50,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"b2bdf4a6-3f1f-4e05-a092-9ea03f53b51d","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":50,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"f59e4ec5-7a62-462f-a512-cbcabab5f959","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":50,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"1ac4d7c4-8e6c-4f0f-be71-cc1a7845049b","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":50,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"34cfd940-8b97-4905-9bc0-bcbdfa5eef68","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":50,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"0fdf4784-43cd-4756-8c38-3855bc53bf40","block_type":"box","text":"Put Options.","page_number":50,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"0d0e2e6a-17e3-4e16-9a9d-ebb5c2a72351","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":50,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"566a8546-0d35-4dba-8762-d4e0a91b517a","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":50,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"8d6b122a-cfc7-4e07-8f95-35cb258fbf9a","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":50,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"b64b6230-9859-455b-9c0b-724796b1144c","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":50,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"f37fa85c-e3e4-4494-8ddc-ce7b4c0abfe2","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":50,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"58c3db64-bc4a-4e23-803d-177822761bb2","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":50,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"13707e4c-71c1-43eb-879e-dd61b70f585f","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":50,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"84d70f82-e182-493d-9a95-4bb84c9e41e0","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":50,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"6d6ccc56-8c15-4c6f-a579-b3c41110e510","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":50,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"8bf69594-8c90-4f17-a537-12c107c14bd1","block_type":"box","text":"purchase uncovered put options.","page_number":50,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"13f2be6d-385e-4067-be01-1dabe1965598","block_type":"box","text":"A Fund also may write (","page_number":50,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"ae8e3601-b57a-409f-b52d-f621b2063b8f","block_type":"box","text":"i.e.","page_number":50,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"6e7de48a-071f-4cb5-81a1-39d534ed8cbf","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":50,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"be72d1b9-cb08-4175-a6bd-038b9eee5878","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":50,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"226dd8d7-3fee-443e-af81-3efd37484cac","block_type":"box","text":"A Fund also may write (","page_number":50,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"4d06f03c-b481-4572-be5f-021e12138a8f","block_type":"box","text":"i.e.","page_number":50,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"9dc131c0-0d29-46d1-9127-3162341a3701","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":50,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"5e2d725a-0ca4-416f-a1a0-a101bc8b7df5","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":50,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"efb7ee90-343d-41d0-8e4d-db1e18c81749","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":50,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"f2827bef-721a-4813-9c34-87007ae95534","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":50,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"3c00c9e8-a5a1-4928-907f-81189025ec46","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":50,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"5300f0b6-22e1-4f1f-bb3b-1fae1946861a","block_type":"box","text":"II-21","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"00866ffa-f3ae-46fb-bfef-ef008b9adfc5","block_type":"box","text":"NM0926U-5975843-50/228","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"72717256-2760-443c-b431-0d745304f450","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":51,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"b8eb9326-1c52-4441-bcd1-bd80e7cebc8a","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":51,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"73c02e40-9c62-452e-9ae3-1b76138c1d04","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":51,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"b9737016-8090-42d2-a48c-2329988b8730","block_type":"box","text":"the exercise price.","page_number":51,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"f7550742-615b-4031-acb4-c47352441f64","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":51,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"412bff35-a765-4278-9c5f-fefcb29da905","block_type":"box","text":"The following information relates","page_number":51,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"08c79bb3-6378-44be-a309-55245f82cade","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":51,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"e5beaf8e-5c46-420c-b86e-66abcd561202","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":51,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"4e8de9d2-c7e8-4c08-b39a-3c670a282745","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":51,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"82f66907-3647-471c-8302-99fd61ce287b","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":51,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"b10bc088-19d5-4070-897b-afc30f50c596","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":51,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"471bc758-4a45-4161-9021-93c28e28e5a7","block_type":"box","text":"market in order to maintain its “cover.”","page_number":51,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"8506403a-729b-47d7-aedf-29b4e0f4e957","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":51,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"13129847-a948-475b-a474-727f84ee235c","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":51,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"8f4f72c4-3be2-4988-823f-cb0e5ee2f979","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":51,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"039a2ec2-3652-40a6-baa0-f0ca0c2f5264","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":51,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"96dd32d6-4e46-4bf8-b5ae-994b9d9ee0a6","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":51,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"605d0802-d4eb-4bf8-b964-e78dc1515a59","block_type":"box","text":"and incur transaction costs.","page_number":51,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"04e1e07c-ab83-49c2-983c-3d23a0999a80","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":51,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"f1c0846d-2d7f-4253-81b5-62fcec34f878","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":51,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"421fd72a-f7c1-45ca-9760-de2633471984","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":51,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"03a91a38-4c1b-4b48-a58c-d37b03f1d891","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":51,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"6447935d-9029-46d0-b37b-63d957ac693f","block_type":"box","text":"i.e.","page_number":51,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"c2773a29-a8cc-4d81-b8df-8514464f6680","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":51,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"ee7bdd16-5938-4493-ac6b-0895c8f27a51","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":51,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"c1f0c187-e254-47fc-86f4-cfda7eee5b69","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":51,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"8f905cf8-9a06-4345-b627-e414b1a2e881","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":51,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"c6e3f572-042c-48af-8e8e-a8f392fa9280","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":51,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"cf3a2a19-33f4-4627-b847-9f144bd88231","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":51,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"d2f69af3-68ba-455e-881c-be66254acc64","block_type":"box","text":"required, to be cleared.","page_number":51,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"b9cc4787-f2a5-4d6d-9574-d0c396ef804d","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":51,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"4d279e9e-325f-4990-92b1-c7a6fab5c31c","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":51,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"f86158ae-bdcf-409f-8124-fa15f9e3b004","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":51,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"963d2e0b-e44b-4302-abac-3f86a9072b47","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":51,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"3e01787c-5c13-4da9-903c-5d0a92fd0b99","block_type":"box","text":"Derivatives” above.","page_number":51,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"3e1952ad-0f4e-4ec6-8a73-0af45d7113a0","block_type":"box","text":"FLEX Options.","page_number":51,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"2cdc77bf-a983-4ce5-a196-fc8f69b227a5","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":51,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"013a9075-cf40-4e13-b1f6-417732aaaed4","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":51,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"f718b26c-219b-4955-b5c5-3bb25aa51b7f","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":51,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"478bb885-62d1-43f0-b159-4884cdfe3980","block_type":"box","text":"exercise prices, exercise styles (","page_number":51,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"1d44ce71-2a5d-445e-aefa-3bca95841b17","block_type":"box","text":"i.e.","page_number":51,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"2770f6de-61ab-4410-89a3-35e53469906c","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":51,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"84355578-832d-4cac-84a9-a42d6b1c7607","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":51,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"ab3f75bb-cca0-4b05-ba6d-c951b18b2207","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":51,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"fd278fdd-993a-4f4f-ab4b-2a25e3b936d5","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":51,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"3b8c2e88-9c2a-4520-8c82-96c59eff3b26","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":51,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"697861db-c290-4ebc-8219-6f8011584a21","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":51,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"9ac7ef32-f56c-4049-8ac3-13a1c5496310","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":51,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"8a80a2a2-c7b6-4484-8ef3-9407ef37f3c0","block_type":"box","text":"FLEX Option’s expiration date.","page_number":51,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"89ce6643-e0e5-4e06-8ccf-5f8f84146da3","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":51,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"a6ea2e20-9e16-48b2-baf8-506b26bd307e","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":51,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"2a1a728e-6c38-41d1-bb49-7bcf35581667","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":51,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"e48b134c-8f30-4a4c-b5c4-96cfef86f9f7","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":51,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"1e3d8708-ce19-41cd-9018-015651155d36","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":51,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"5b31976f-3649-4d8c-83a7-7842d9a8764f","block_type":"box","text":"FLEX Options contracts.","page_number":51,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"20313ff6-242b-4401-ab03-3c9cee84148e","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":51,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"2b3a9c83-c253-4807-b4e8-856ab386a9d2","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":51,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"d329c3bc-1b26-4702-9340-143086d6731c","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":51,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"f750c752-25cc-4dd7-891f-5519274d67f9","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":51,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"07c874dd-8147-4103-a52f-feed400671e8","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":51,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"ff50a7db-0449-4fab-8ce1-5b55b77f7dd1","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":51,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"7e3caf95-0f9a-4253-a862-5915d89b3e5c","block_type":"box","text":"II-22","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d33d13eb-a60e-4477-9010-73f22f60a1ea","block_type":"box","text":"NM0926U-5975843-51/228","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"535f99f8-02c6-4e2e-8866-817ab5d9530e","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":52,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"7c2fa0fb-e139-407c-a695-ab1d487d0b9f","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":52,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"f433fca3-75b0-4420-ada3-94f19c13df22","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":52,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"6cb2e0f8-ff8f-4a99-b1c4-e48cef27596e","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":52,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"d2ec67e7-5150-49cd-ae37-c52bab525e69","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":52,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"3df63000-22f5-4238-adf8-8acb766987fe","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":52,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"c3262952-d57b-47c9-aab7-8744475b5eac","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":52,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"d470bbe3-5903-4776-98d3-4f838f3eb8e3","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":52,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"71cfb477-bfb3-45d1-a75e-45a4a0f24bcd","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":52,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"d871da3f-4f7f-49ef-9892-43813420134b","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":52,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"b54af2d7-c2df-435f-8b76-c9168f6b328a","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":52,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"390337f6-1aa8-4e67-840e-e9cfd08f8e13","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":52,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"126ca3c3-e867-4c73-872a-8d43331c8fad","block_type":"box","text":"expire unexercised have no value.","page_number":52,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"e218ab0d-d41b-4233-bf75-d31f60bd63ee","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":52,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"ba00766b-10c4-4248-a5d9-fa5902c8ebfc","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":52,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"f77359b9-adb6-4ddf-ac7a-f72baa73f37e","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":52,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"fd3c0bce-2f99-4317-b141-d2252813f0a1","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":52,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"38d893a8-a56b-42bf-86ab-58c4f5ec27ce","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":52,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"779e2a27-dc92-4fc1-beb5-87e7698acd9a","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":52,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"9a1f051f-c114-4a78-9d5e-e65cac3d12d4","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":52,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"79aa0c64-5472-493b-b553-fad9197de05a","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":52,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"b4ba9e30-1bb1-4a69-90ea-1707f4a52085","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":52,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"9f10f10a-d674-40e9-99bd-2624144c1433","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":52,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"38e02379-a30a-415e-8763-555f043e8828","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":52,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"7861630f-736b-4c4c-a591-9e859425f30b","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":52,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"5ab8a760-20d5-4a19-ae55-49b10c2b8cdc","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":52,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"dff919ff-06ad-4aeb-965b-a386ec0db712","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":52,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"204f22cc-bb5d-4a78-962b-9e7e12e05afa","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":52,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"5135e320-858a-403b-b54a-47ab2b70312e","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":52,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"f9a7065b-cb62-4cdc-871c-f9986c662eac","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":52,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"696aa1c1-dec5-4800-90c5-636be00fb188","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":52,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"2bb610ac-9c0a-4977-87c1-0a7c9afec710","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":52,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"02c95d9a-90dc-46dd-a525-1726e0b666da","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":52,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"c844154a-59d3-43e0-83a2-40ca85f3070b","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":52,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"973d003b-aa72-4f10-8320-f8c4d17b3929","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":52,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"b3a01aa0-a1ca-4b79-9906-72c7e3b19480","block_type":"box","text":"Foreign Exchange Transactions.","page_number":52,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"cab6bb6b-9575-4246-bf70-828d3838ddf5","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":52,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"9cdb7472-e8e4-4145-8f56-582130dd1e14","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":52,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"26f59657-be67-4727-81ce-2f5bf2d2ce74","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":52,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"f73c770e-772c-4405-8f1b-590875078e0b","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":52,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"df462cdb-fb82-4ee8-ab5a-53a1bf0c370d","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":52,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"05e6d521-5fbb-445c-b5be-2f60113af33d","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":52,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"7217fab2-80a8-4467-ac03-8cd4de278196","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":52,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"7c3d32d0-5195-4276-9c08-fc1bf09b993b","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":52,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"b26e7746-69cf-423f-9eac-25cf76976f97","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":52,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"0d2acefb-ff16-4127-bb1c-51dba03c0ba7","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":52,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"2a55bfab-2bf1-47a3-a3de-7d8db57980d7","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":52,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"7c74cd6a-b7a4-4bdf-be4d-2626132db63f","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":52,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"11e3a391-b834-4633-94e7-ed86b64358d9","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":52,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"ba9463f5-8e9d-4cd2-bad7-a81a663838c4","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":52,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"2c897d71-3c29-40a8-82f2-a823c3462579","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":52,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"edbf51a4-dfa3-4eda-bf57-70de823d4699","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":52,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"21aebe74-882e-416d-b4a2-62e5fc37f2e0","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":52,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"fae14022-2507-482f-ab35-06138bb26972","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":52,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"7de05979-735c-4c57-8c06-c2ca614ddb7c","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":52,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"866861d0-0dd2-4c33-90b6-7ed92bbc8116","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":52,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"9ce0a79f-40e7-4641-a795-3eb82557920a","block_type":"box","text":"II-23","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0ac5ccb9-c3f5-47ef-8409-cb6415a2ea4b","block_type":"box","text":"NM0926U-5975843-52/228","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"049d18a7-e5a0-4c07-800a-c47194b1a320","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":53,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"9b43f519-3b2d-4ee0-b50d-221b9a268d0e","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":53,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"e818ca76-83ac-40eb-9c34-520bd424f229","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":53,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"823ed815-3f20-4c45-a571-ab3038826ade","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":53,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"47afe4f7-87fe-4db2-a4b7-01e62dd7c257","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":53,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"01e63b96-270f-438d-8e74-419d5f806cca","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":53,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"bca9f924-f720-4593-9701-ca29aff9fa62","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":53,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"ba7d960d-8f4b-4f2d-af9f-b1c8a29a2e2b","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":53,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"8bfd07bb-a8ff-4433-a13f-1069f0ff47d0","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":53,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"598f1e20-9ceb-4a11-a7fd-1e468d6e8522","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":53,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"d3f2b1d5-26bf-461c-a429-ca1167fdd70f","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":53,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"8ca57372-b7fc-420c-b892-4ebc399c887e","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":53,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"da5fb378-ff55-4294-bee0-909849d662cc","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":53,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"94e562e9-d4f0-4aad-91b5-bdab411a6e29","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":53,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"2a3449db-88ba-4e34-b743-46f6ba3f9253","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":53,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"a4ad281f-ec2c-4181-a5b6-96e5580ee5c8","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":53,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"982b25fa-ae72-4e71-b68b-0f008f804d8a","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":53,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"378d3bf5-7217-455e-87c3-874b94ac4d47","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":53,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"fbd11ad3-54d2-4d15-bdee-c47a5795a55e","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":53,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"f4025dbd-d64a-4c33-a9b9-a1289c8779d4","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":53,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"cf3afa15-b2d7-4767-8b91-39b2c12b7d3e","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":53,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"5e69d1c7-5815-466b-8b1d-ea34d2ce582d","block_type":"box","text":"involved.","page_number":53,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"70e8c81f-ace3-4526-afd4-9d46e22b73ab","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":53,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"1369060c-89ae-48a6-a6be-f1f23b69cd07","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":53,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"50998224-c9ab-4469-a977-bea3d1236fa7","block_type":"box","text":"denominated in such currency.","page_number":53,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"a0ce6550-c35e-49be-ad33-697a51f90b77","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":53,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"db6da8a3-7620-462c-9751-ca3475e1efbc","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":53,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"dedbfc57-c9fd-4003-9f19-c7806be7d987","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":53,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"e73f6a04-496b-4dcf-b272-8b9a6b2b5857","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":53,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"c845ccc5-3f8d-437c-897a-b9b738b799e1","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":53,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"8117ac6f-d8d8-4d39-8abe-0f02116eaf98","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":53,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"bd5571b7-88c0-4cba-b5b2-5ff2aaa9569a","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":53,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"4b29cfc9-c7ce-4209-93c2-ee9028c595ad","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":53,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"69436a89-82a0-46fb-92b9-020ba54b24f2","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":53,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"f0def3b4-77fe-43c7-beff-32d4962b6ee0","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":53,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"d6b1e4c7-f55d-466b-92ce-4d624c59a0a5","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":53,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"1b3a7a76-e24d-4602-a865-694e2012ebed","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":53,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"3eeee97e-964b-4204-bfae-c1c0ae258505","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":53,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"ac2b2cb5-1973-4b0c-8c6c-af3f32079187","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":53,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"9b2ece16-2f16-4d21-a57c-37ce59ff9cfa","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":53,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"a7a9f3a8-4a66-4055-92f9-6872d7179378","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":53,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"31703c98-e427-4401-b1cb-0ee6e0cef3a3","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":53,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"5dc30362-1512-4844-bc53-9103c314371c","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":53,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"5cb383bc-d5bd-49e3-89b1-2f88dc0c038e","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":53,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"83123fe9-a8d2-44be-aa93-12d4f2eaa023","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":53,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"710f9509-ce9d-4922-9273-28962066dae7","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":53,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"8cfc09a7-ded6-4d74-8390-4d2522ae464c","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":53,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"338083d4-eaea-4e72-871b-f3299b6d72a6","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":53,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"f8ea1184-c0f9-4e0f-a15c-cc08482d2df9","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":53,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"23cc00bf-39cd-493d-9397-597345efc3dd","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":53,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"b656c172-aa84-4197-ae1d-f950e22d5086","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":53,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"0b10c27a-590b-4a98-9842-a6d5321fb839","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":53,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"8a7b2035-0409-4a76-b51e-ebde7a6180b7","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":53,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"b5429e38-6f2e-4632-8683-796e518c443e","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":53,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"4aa62a98-8eb5-45a7-a39a-634f03d436fd","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":53,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"bf66c14f-ba91-4d5c-b79c-fc8b4bac6030","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":53,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"1423f0b0-0b2e-4ade-be98-5eb0c9e4bf18","block_type":"box","text":"II-24","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f179272-5612-4cde-8080-3e1b7f5b5195","block_type":"box","text":"NM0926U-5975843-53/228","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1f79a644-8d5a-4b80-b99f-0561482ca95a","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":54,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"ca1701b1-4e2c-4d5a-93cc-c72f26a77379","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":54,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"60016cdf-ed19-4454-a549-38239bc00e19","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":54,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"c814504c-7eec-4730-a25c-d3b614f5826e","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":54,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"11f5c451-fd6b-4461-8fab-0f0da604fbb8","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":54,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"e1e5a6f5-b5a9-49bd-89b5-7677265ffd57","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":54,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"211b4f9b-a009-420b-bd0c-38f913780a28","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":54,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"4dfd8389-cb32-4340-9967-c5f663993ad8","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":54,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"259ea219-7eef-4918-a20c-6cdf427d45cd","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":54,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"7dd887d0-bd19-403f-95cc-150829d4404c","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":54,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"70bc02d3-ed50-4dbb-9754-08cdc9de29e6","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":54,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"2f44847b-5eb0-4977-b5d4-ecb26b839be9","block_type":"box","text":"traded.","page_number":54,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"5cb70109-4a8f-4356-8733-2866540078fa","block_type":"box","text":"Currency Futures.","page_number":54,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"26fb1480-9614-4c0d-9a33-8e68b544feff","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":54,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"19f91b7a-3b6e-42f9-b6e3-6e0e298b662b","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":54,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"d3c6953f-2184-4bd0-9588-673c719ec21d","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":54,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"37222c1a-1acb-4af3-a187-f773a00b5848","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":54,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"7729cf13-418b-443d-b370-afefdd42552e","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":54,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"2c1a3afa-7497-464d-8479-2f70248a71b9","block_type":"box","text":"Currency Options.","page_number":54,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"e9b04b93-bec0-4ce0-8169-e24f4a942953","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":54,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"3750cf76-c39a-4ff0-ae8d-2ac524889997","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":54,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"c9778f19-b7f5-4f55-919e-b4d4ca74855e","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":54,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"16d1bae3-1cb8-42aa-bad6-f9cf62caccd9","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":54,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"0513b381-4913-4f67-a303-ef9a08bc5be8","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":54,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"e2bc424f-0807-4627-9b58-e74ac7c4d406","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":54,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"e2db6799-bb93-4827-9b29-3b551e4052d3","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":54,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"22736171-86ed-42bd-b6e3-a6851cda23a0","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":54,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"9fa2359c-764b-4db4-bea5-8c400da6770f","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":54,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"916bb972-ac15-4b98-86ac-159511044516","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":54,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"18395eba-c0b0-4100-aadb-561da4e514e5","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":54,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"5d9b8ed1-d483-4cd2-87e7-41f188f6a6eb","block_type":"box","text":"Currency Swaps.","page_number":54,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"db8a5145-c542-49ab-96a4-5ac8dd62e0be","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":54,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"1f6d902e-0805-4e1d-a6ef-ba7fab961194","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":54,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"de9a1e7a-b4ca-4a29-8a6e-a9552f127d97","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":54,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"b0c59939-0e74-4b3d-b879-6a1c78fc6777","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":54,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"3600b3fd-3f42-48a7-aa58-8a21b3a0129f","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":54,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"1866a793-ba71-4964-b88c-b3b2ae38d535","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":54,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"cb0725e8-4249-4e9d-9eef-53bcd705fbb2","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":54,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"4b94fff5-ac0b-4c8d-88a5-07e9f7c891fc","block_type":"box","text":"Distressed Securities.","page_number":54,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"6ac6d958-3096-4392-81a0-c24fe4301928","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":54,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"a9168107-2ded-49d5-8b1e-c424ac67584e","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":54,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"fde22e69-acc5-4244-b00a-f2f11ec88ccc","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":54,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"5f561379-1173-4e79-b41d-2183447f58c6","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":54,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"680780aa-8af6-4498-9a4f-0020658cd565","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":54,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"a45dbca6-0db9-4d6b-9149-24a3c250064f","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":54,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"2ad44242-c025-41e8-b936-b0274db05b23","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":54,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"1ed5559e-b001-4326-8442-854bb4744ae9","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":54,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"5ecf1167-cb8a-4f37-b976-a58616b28f8a","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":54,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"c37bd0c8-fa75-4f2d-a354-69f66d0f5e7d","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":54,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"451e5036-406d-41a6-af34-d5116e6768fc","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":54,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"5511d842-884b-43a5-9e0e-dbfcccf99be7","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":54,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"cd77bf69-a930-4db0-8fa7-8d18babb52e6","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":54,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"c9294335-8cb9-415c-9057-afe23058d0f2","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":54,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"890358b0-682c-428f-9626-ac33f68046ae","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":54,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"46c9f3fe-1b81-4990-b7f4-e0ef193b8cc8","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":54,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"4e467d6d-3a5f-4c53-ade0-4c8a100606e1","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":54,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"ecaa24c6-1793-4117-a88b-b19cd75669e7","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":54,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"9d606c3b-2832-4059-965e-a22f222e79b5","block_type":"box","text":"satisfied (","page_number":54,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"6a3580fd-d2ff-49fd-b6a3-ee7a7f962245","block_type":"box","text":"e.g.","page_number":54,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"858a5236-8fcd-47b6-81f1-92fff58164d8","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":54,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"0494b7ec-7fb8-4c9a-ab43-1753281f986d","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":54,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"1bf8dd8c-0878-4e45-a519-934f03138511","block_type":"box","text":"II-25","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c880b6a-3d8b-4cdf-be27-9250d77f7000","block_type":"box","text":"NM0926U-5975843-54/228","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f3a9131e-6010-4421-9de8-cdbc762c024a","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":55,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"16cccaaf-88c5-4d1d-87d1-125322c9b4cc","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":55,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"9149cec8-dd7c-4fc8-b38c-a922f985578c","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":55,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"ec1a8b8d-64a7-4735-84ee-a2ebe069d6ee","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":55,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"b384b9d7-f2d9-42f1-ae5d-c61a74afdc7c","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":55,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"016fcd14-dc7a-4559-83db-74238b2fb337","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":55,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"e5f518d4-1c66-4fe8-952b-f7831708a8d3","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":55,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"511ffbeb-607f-4aa8-879b-391ab07d99ac","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":55,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"0e5f4c6a-9d22-428a-a4f5-db03917bac03","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":55,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"da71b206-9425-43c9-9164-6b39ba99fce9","block_type":"box","text":"affairs.","page_number":55,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"9b4f4a96-9a19-41d5-8e52-ac040d6ee91e","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":55,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"109f3687-926e-410b-934e-06ec92138c89","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":55,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"75596b25-987a-4ffb-a35e-e53f13021cf3","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":55,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"fb931035-c5df-4b48-afc5-711456b53f8f","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":55,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"f670dd9f-307e-47f6-8761-a16d142df583","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":55,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"5d93cf2c-b88f-450c-b091-55b5c31218da","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":55,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"a949607c-4348-4bb4-8d8e-5b9f9fd447f2","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":55,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"3fca11b4-c986-46d9-a8e7-e95f67053046","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":55,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"82811e15-723a-45cc-a15e-2e4085cd3c7c","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":55,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"a5a71361-9ed4-4263-b767-3bfaccbce2ae","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":55,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"39dc188c-1ab1-4207-94c1-28c6135af5d6","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":55,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"455be194-10dc-4e2d-8081-69c92981c74a","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":55,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"32706b92-4074-4a40-86e3-caf5faaf654c","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":55,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"8549a7ee-2b95-496d-85e5-0e376c749f4f","block_type":"box","text":"Equity Securities.","page_number":55,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"179bc637-1c0b-400c-843e-fb0fb2a9da15","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":55,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"26ce2e4f-444d-46d0-980a-963490473830","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":55,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"7bb32676-8e19-4e9b-bdae-62b7366f1713","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":55,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"b2ffa0d4-1d83-43b7-8b71-acdf5185b1e0","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":55,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"de828289-a087-4da6-aa6e-4f0e935e0f7b","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":55,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"09a3a9a2-a866-4e19-9054-40a26ea58cbe","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":55,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"21eaf60a-b3da-447e-8957-b36ffc328ec9","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":55,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"4319af2e-8aca-405a-b8f3-5dd21a5dae6d","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":55,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"b466bb17-ba80-488a-9e67-87905e2f08ca","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":55,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"bc4c1b18-26f6-45d5-a93e-95af0464d3a5","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":55,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"736c1ed4-df37-4b70-9d2d-2953cad296bf","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":55,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"42092112-bc9f-43e0-9cff-87d99b266d4f","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":55,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"bd8ef6f5-a375-49f4-85f8-9a9d40710b6c","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":55,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"13048f49-2321-4983-90da-fde3199545f8","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":55,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"b6de949a-9831-497f-bf7d-c06908f2bdd6","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":55,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"f469ee74-8ea0-4a5a-aee1-fb92330c57d5","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":55,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"b50a11b7-4b97-4dcb-9be0-57e978063625","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":55,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"a0681de9-79ed-4bf1-8d13-c47a778ab43f","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":55,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"a1871b18-e231-42bb-8f1f-ad5656af66cd","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":55,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"71ebdaa9-b4a2-4f14-a82a-29428c13ddd7","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":55,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"4d4cf743-6f48-4ebf-a5ab-3111c7ebfcdd","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":55,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"9aedd331-553c-4a85-97ba-3fb29e1cb5c5","block_type":"box","text":"initial public offering.","page_number":55,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"956e3dc9-18ff-440f-8a80-2d0be93f7ecf","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":55,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"755cc4ff-bd65-4091-8f24-a9157714666a","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":55,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"c96204b1-8cb9-4d8f-a434-db5c37853587","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":55,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"cbec69d7-7138-4011-b02a-f330e0bb376f","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":55,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"2f6667ef-3bba-4ac4-b353-0fe9fc4ef60a","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":55,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"53ebb7b7-902b-40e9-a079-2eca149e3937","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":55,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"e2590725-48be-4b62-b1b5-7692c97980bb","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":55,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"de6cb47d-b758-46e5-bcf3-1cc67e01a841","block_type":"box","text":"more established companies.","page_number":55,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"1ae14878-aae0-43a6-853a-2ea9ba1f503e","block_type":"box","text":"II-26","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"86faaba6-d329-47b6-9474-03c2f844c87b","block_type":"box","text":"NM0926U-5975843-55/228","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0f8d4214-2458-4145-ae88-b91d8f128a6a","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":56,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"7cfa19e7-934f-4a0e-b366-5bfccce7a374","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":56,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"d88c8e81-d6a2-4c9f-b42b-62f5049f550a","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":56,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"c1e0dc04-1b03-456d-a11b-56d9e168ef4e","block_type":"box","text":"below.","page_number":56,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"305bacf9-2882-4cf5-8895-8e276552f658","block_type":"box","text":"Real Estate-Related Securities.","page_number":56,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"f7d9e366-566a-453f-b327-8fa7cbd8ed9f","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":56,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"5ddf4f4c-e683-4807-883a-a0afcd2a1306","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":56,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"faa8b959-e40e-4084-9781-8afe4aa4742f","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":56,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"58338526-9bb5-4937-bb12-8858e6cdeed1","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":56,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"8d311f45-e4c8-4e2b-9458-c114e10a6b33","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":56,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"7446c5df-0853-421f-b0a9-18ecb0e6fb1b","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":56,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"a9ac71d7-d752-48ca-94ab-e26d57cd9ee6","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":56,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"70a2b811-3471-428d-9d5b-eadddf4d2960","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":56,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"c1c0156b-1340-4f04-8ff0-3d1f040ae5a6","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":56,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"e2dc95a7-0b15-4d05-9257-b527eec2dbc4","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":56,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"5ea47f17-d06f-40bf-afab-42a028c7e9f3","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":56,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"b8f7b6c2-9b96-48bd-a207-f87fca99634f","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":56,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"1f02bae0-216c-4605-ba5e-0954dd6e4e9f","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":56,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"ef35b803-8e84-47d3-8100-01c7673d2e3a","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":56,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"2b9c687e-82ce-443d-a9ca-e11489569336","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":56,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"670ffbc8-9e4d-454c-8884-a6a03621a5e1","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":56,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"cc9aadbf-2640-46fa-9d48-1472729e7727","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":56,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"5ff1b98d-5e05-4dd7-96de-64f6cba0f8a8","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":56,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"6137e399-6e63-4ab9-a9b9-843748c88181","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":56,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"79e8527d-d13d-49ed-ae9b-01188f37f010","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":56,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"deca1029-0818-4500-a102-a7b532638ff8","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":56,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"1668165d-38c5-4bfb-be36-4a825b9faa41","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":56,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"9664c933-8443-474e-9326-1781d3792724","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":56,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"4838fc3e-2449-4bbf-a9ad-ad17c34e6f6b","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":56,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"c781174a-51ac-4dd2-9632-358b951cd228","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":56,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"b180ed68-bce7-4684-acfe-71583620dd79","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":56,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"c02f0351-8e4a-48a6-a479-90f7190294df","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":56,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"36fb5fbd-0104-43a7-b211-1b1360bfa84a","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":56,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"f07a90f0-9395-4762-9532-1033565b6e2f","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":56,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"1c7fe2f7-004d-47f7-9ee0-da42096ac8ed","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":56,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"c112702f-9a9e-4985-9c27-b1dbeb6f441f","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":56,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"b5c38b62-ec79-4980-92cf-8abd41462912","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":56,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"1d8a69a6-18dd-4a25-975d-81080afc4ab8","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":56,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"a642afd0-4738-4e2b-9882-b98df7cf3fb2","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":56,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"a3ad9d04-2080-4fb3-95e1-818be6535aa3","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":56,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"da3d97e1-78d6-4c22-881d-f8c782793054","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":56,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"88cc9f8d-06ba-4b7a-999a-3123b2fba235","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":56,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"0c5f896a-ab10-4ad4-b4da-2152d4054d6f","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":56,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"47c62e14-27a6-4fc7-a387-0fb50fc30ee9","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":56,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"ae0cf470-49d1-4efd-bb12-0117e6c6c867","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":56,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"f5af05aa-4153-4633-a785-2ef559e38225","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":56,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"8e1c155f-707e-4b76-9da5-988b6759f6b8","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":56,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"227d0a20-1528-42d8-982a-d9f0c66f199c","block_type":"box","text":"cycles.","page_number":56,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"a10c3eae-fe63-455b-85d1-0c06530fc728","block_type":"box","text":"Tracking Stocks","page_number":56,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"3d2a9b27-5497-4530-9807-68f299aa9a8f","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":56,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"77e86ca8-13f1-4789-9416-c1aadf0121be","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":56,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"7f5e01f4-e3a2-4c11-b4d7-ec06992a6f90","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":56,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"041320c9-d173-4f32-973a-7d4d843e3e54","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":56,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"d0fbc91e-fea6-4a5a-a761-42762c570d78","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":56,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"1158141f-75e9-4e3a-97ca-28cde4d861ac","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":56,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"d900ea34-e3ea-482e-85b8-3278af81fa37","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":56,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"c1d6a406-e852-4654-a001-67be640905dc","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":56,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"b13abe9b-9527-4482-8d9c-18d302e2df1b","block_type":"box","text":"II-27","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d8fcffe9-b816-4f70-a528-54bbdcbfd192","block_type":"box","text":"NM0926U-5975843-56/228","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f535eff1-f802-45d6-b9cf-d0b7d01b2c10","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":57,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"a675083f-f34e-4c55-8ad7-c288866a54de","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":57,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"fb54dcda-1609-45ed-a94a-f832dc2107b4","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":57,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"edb7f7fd-18dd-4abc-b278-cfe6fadc6d4c","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":57,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"bb6c6995-f87d-4461-ab03-023fc78fbbf0","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":57,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"bcde1b40-a7f0-445d-b9f7-9ebbf886a23a","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":57,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"91fbd0db-9af0-4787-94ea-12a58ca0a54b","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":57,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"93075406-bf8e-409a-8a51-e4e7bdd84f9d","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":57,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"6fb2dfb3-3116-4355-ad03-5850fe365aa8","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":57,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"b51d720f-d880-4625-8e1f-9c34668f2aec","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":57,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"923074e4-3621-4c4c-a282-b599add6953c","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":57,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"aca314ea-cc8a-4dcc-983b-b61233f7ed5c","block_type":"box","text":"ETN.","page_number":57,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"a799ef87-bab8-47c7-b299-507b452146cb","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":57,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"5a60d7f2-dafd-4eeb-a7e5-ee91247adc7a","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":57,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"55c242e5-7408-4783-8b2b-dd7b276dfd40","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":57,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"3222a76e-5c43-4a20-a3a2-daa49699914e","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":57,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"96c9cbca-9df1-41b9-883b-13cba1ce2caf","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":57,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"270e23ba-6be1-4612-baf6-fe31d93e2b22","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":57,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"c729240a-8c95-4175-9170-181d71677de5","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":57,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"16ba53f9-1b78-4311-9b56-412927670c52","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":57,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"dc1d54c7-79b9-452f-9d97-d4520c9f53a6","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":57,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"8b9b99a2-4e02-48b6-8d78-b90b2b14da86","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":57,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"07500aab-ff56-4503-9eaf-37cec59ca151","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":57,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"2fe7587a-7d6a-4108-ac33-c19c6eaf4bb0","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":57,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"22d9987f-960f-41cc-beac-f0fb5aa4a33a","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":57,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"e287a042-c213-4728-9a61-efeab7b23824","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":57,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"ae009ec9-07ca-4c96-831e-82e461a9a680","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":57,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"e6ea2200-f759-4522-9167-669cf3b68ca7","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":57,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"356127f0-33aa-4b93-8db7-24ae4f3d9670","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":57,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"5462e159-e880-4995-b951-05769c293f2d","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":57,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"f3fdfcbe-ef7e-43f8-8d62-0994d17306bf","block_type":"box","text":"Foreign Investments.","page_number":57,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"2da028e8-a7e8-4875-8dfc-1f34d08151ea","block_type":"box","text":"Foreign Investment Risks.","page_number":57,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"c33672db-e024-4b2a-80b4-54347555e9e1","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":57,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"a9573d71-f90c-4de4-8c1e-e268b6522bdd","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":57,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"be346cc7-4123-4cf7-a112-bcc7ea7c8f59","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":57,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"7609db73-69b0-4332-9d4e-b26ac6b099a8","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":57,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"442f9fd7-0435-4bbc-a7ed-2e4422082545","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":57,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"2d97f75b-6aec-498c-a140-bec02fbd5d94","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":57,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"21c35800-e082-4937-acf5-ff07c1d7c440","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":57,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"38d7994e-94f7-4519-9cb9-43fa74c79d99","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":57,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"19b72f4f-5f9a-4fa6-a2ac-688f7a5cdf31","block_type":"box","text":"benchmark index.","page_number":57,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"f113fe6b-367e-4001-9d4c-cc83b3c9bfe0","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":57,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"d79b9bb2-e6b1-4ae9-a7ed-74d5673925df","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":57,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"485012fc-9cb9-46dd-a039-27d786e875cd","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":57,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"edb50d8d-6dde-441b-97d7-9a28eea9bcbd","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":57,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"263d1205-8cb6-4d1a-8090-920f1c031a8a","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":57,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"0a3f79ec-007b-4ddb-bcc4-943b3d2e7ad6","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":57,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"81eea9cd-7f75-45e6-af26-77808888546e","block_type":"box","text":"securities and zero-coupon securities.","page_number":57,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"8fba5533-a09a-4243-8fd9-10661e2f54e6","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":57,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"29c8c8d0-0735-483b-bb30-307f52d10ac8","block_type":"box","text":"taxes.","page_number":57,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"860d5cb7-fd19-4f9d-af95-9a000f207440","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":57,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"b2907794-cb27-422e-af9f-f5293af34942","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":57,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"8233959a-c72c-4935-818b-d542e7fab40a","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":57,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"c2e6bc33-987e-4ea4-8546-85767e19dc54","block_type":"box","text":"II-28","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ab90bfa5-c22f-4cf7-9f86-3cce3bf000e7","block_type":"box","text":"NM0926U-5975843-57/228","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e32a94f2-8925-4ccc-b597-0121a5e71d0d","block_type":"box","text":"underlying security (","page_number":58,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"b9ca6bc8-895a-4239-bd3f-97557d107e2d","block_type":"box","text":"i.e.","page_number":58,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"6393a417-d86d-4f5c-ab9c-962133f450ef","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":58,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"c1703d41-7a42-4380-a63f-ca4caa9c7e57","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":58,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"90b57b05-b1a9-41de-8722-3957aa56b8de","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":58,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"d1c39b90-65ff-4d52-995c-0ec7b81b879d","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":58,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"2462cb37-303d-45e6-96b1-45bd04be3ffb","block_type":"box","text":"Foreign Market Risk.","page_number":58,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"c86678c9-d0bd-4fc3-8c14-4c2fae58bb7f","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":58,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"f86b6384-e4c0-4d6b-86bb-01430e6ef088","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":58,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"9b08c2cb-a0d9-42fd-beee-51e84634bc08","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":58,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"68f55e6b-7f0e-4b11-ab69-250178967b84","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":58,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"98031db8-2e78-491f-8c13-3a5d4347c0e6","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":58,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"2bba8288-a0fc-46e8-bf66-6130f4e2d774","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":58,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"3c1bc25a-c65b-49cb-ae3d-607a2f4e1444","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":58,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"63873104-f101-461e-b3f0-11727c29f5a1","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":58,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"1ba2b552-f845-4788-b55d-77412e773267","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":58,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"b75cc6a7-e9c3-45d6-a0ab-271eae360057","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":58,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"c661886c-103d-45eb-9f8d-3ab339c6009f","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":58,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"51ee51d3-f6fe-4b99-996d-e2f9e4267af0","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":58,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"92b04512-2511-4e22-bd3d-9984aa83bc7f","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":58,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"e76fab25-4123-46a7-aac2-7e4500716a87","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":58,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"ee37d95a-5e4d-4fd3-ae55-db863a0e7f8e","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":58,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"20fa5cc9-5afb-47d6-a308-cc77eb1aa12b","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":58,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"1cf8a592-94a3-4c4a-9466-52650278d3b1","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":58,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"e478d357-245e-4125-a6e3-9ad0ded274b2","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":58,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"706609c7-fc2a-4f43-8416-bae4617f3d93","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":58,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"c6775caa-0b49-4484-a152-364171e47ef3","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":58,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"9985f476-433d-4d1e-a1cc-041c17efa8af","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":58,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"16b06c79-3a44-4e14-b934-a8ddb95184f5","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":58,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"f809ceb0-d76b-4f6e-999f-633d30aae8c9","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":58,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"40a7e206-6d08-4818-81b3-c31b66904464","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":58,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"f90ad579-7add-482e-a8b6-fb52e9e3b943","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":58,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"4a05e483-7b6c-4d92-bb52-0ec8f72038fe","block_type":"box","text":"Fund’s operations.","page_number":58,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"eef3d3d0-cea6-4bb1-836a-036a80b7aa03","block_type":"box","text":"Foreign Economy Risk.","page_number":58,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"a3038f85-54a1-433e-aae3-ac31c4c17292","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":58,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"93a07065-f0a8-444e-a033-d7c6f5da712e","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":58,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"61098dac-dce6-4518-b572-087d998c1241","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":58,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"b09430e0-fbb1-4d55-8621-a7ce1bb8f001","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":58,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"595bafa8-fb75-4982-b96b-4ac7f43c2849","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":58,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"3f4e9646-623e-4a56-b0d0-c1bd906e8f64","block_type":"box","text":"measures.","page_number":58,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"54cc367e-19e0-4819-8f4e-5b2971a8d86e","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":58,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"f0a63370-e251-482c-91cd-e81476a9e33e","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":58,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"7425147d-9499-4a30-894a-fba284180ad0","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":58,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"33d59ac7-e46a-412a-8ec0-4297ff14ea91","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":58,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"1f7cd413-f408-41fa-ac87-c4e07918e351","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":58,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"6f2a095a-748e-449e-b8b2-cd7a833ca256","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":58,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"2d4e4952-1757-401c-b6f5-04a66822b586","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":58,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"e2cc4da1-49a8-4ead-8a7a-93845b3e8f8f","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":58,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"492fd115-7063-43d8-9a45-25b707278afd","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":58,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"31f4ec96-72fa-4659-a3fc-229d03b6c86f","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":58,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"b1365c43-884b-42a8-b1dc-5c4e8662178c","block_type":"box","text":"United States or abroad.","page_number":58,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"5587b6c7-d230-4968-8d8a-89ab7c6ce42a","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":58,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"2cab2e9b-b702-4b5d-86f1-7a3fc749b75d","block_type":"box","text":"Many foreign governments supervise and","page_number":58,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"8b128150-eaf0-4937-a8da-2c92a1d8835c","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":58,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"6049d153-6869-4cb0-b913-e2dd199d443b","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":58,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"423d42b2-1422-4b4e-b3f1-dc9f9e846723","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":58,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"b4670a43-9e91-4660-8d7a-25cfe0faef09","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":58,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"edd9cab8-e944-45f2-9ef3-0bee043947ad","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":58,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"6e6ec33a-0886-4484-9226-fd690e6be07e","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":58,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"2e3e4dc1-a23c-4895-bc4f-6e71f56021e5","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":58,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"110fd726-5be8-4761-9895-fa648710e5f7","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":58,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"442eb32e-effa-4cb2-8b81-4fdbc11381e2","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":58,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"942f36cf-a8ad-4b72-a3be-82e9748bbf07","block_type":"box","text":"II-29","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2dd8ad7-8dc0-4596-9fdb-50aeba81bf34","block_type":"box","text":"NM0926U-5975843-58/228","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"77bb06da-894b-46da-9399-53c06647b195","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":59,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"f2eafb1f-a860-429e-b1a1-edbb77e2e93c","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":59,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"38401400-874d-414c-a680-d0828d165b84","block_type":"box","text":"investments.","page_number":59,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"ac399d57-9181-47b9-8741-4ffee99db7e7","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":59,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"e787c813-ed76-47dd-8e1d-83c20a60b34b","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":59,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"28573135-cdb1-43f8-b216-8a1ca2bde9cb","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":59,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"223807a6-c64d-4fec-a1e7-5f30f1ee5b38","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":59,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"6166f7c0-dd50-4b92-9ef4-0e6796890b51","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":59,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"bcd1cc9d-3b0b-4982-abcf-728fd365bd44","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":59,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"d1a2dbef-4c4a-47c8-b313-f126af5a6638","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":59,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"3d0715cc-bda4-4cf0-a193-c649f56ab1d9","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":59,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"fca8c83a-b9d7-4fc2-985b-dc9b53a0d112","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":59,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"507022e1-cfcd-43cd-8c5e-2288712ff089","block_type":"box","text":"States.","page_number":59,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"6f0b673c-07d7-4b46-ba26-8e0ac6d813d2","block_type":"box","text":"Publicly Available Information.","page_number":59,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"9c8274e2-e1b6-4814-8bff-fa8fe3fecc02","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":59,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"015293c2-e4fb-462d-91c4-de1c68559144","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":59,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"dedb2c77-3570-45f6-a604-25e1ba2c5222","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":59,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"07d1f9b0-be95-4e8b-a59e-fb2ea057b9f8","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":59,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"85e6f588-f03b-40ac-bd0c-56afb7b7f436","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":59,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"05decfad-5b69-4f4a-bbc7-cfbd89b9271e","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":59,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"532c7c44-ad28-4303-9ac8-a81e0e2a68b9","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":59,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"1e85218a-741e-4fa2-b6fc-5a224c56e073","block_type":"box","text":"United States.","page_number":59,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"45c007e0-f69c-4704-97e1-1cfb9c0f36a4","block_type":"box","text":"Settlement Risk.","page_number":59,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"f7c5298f-36b8-406c-ad89-7055199c1faa","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":59,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"4c82c98b-5608-4ce4-bf34-b718d948a15a","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":59,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"235be0b1-19bf-4734-9c02-ab1649bbf163","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":59,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"39412cb4-e5ce-4f04-8217-78cb283d3bf9","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":59,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"33bbe6fd-69bc-44c8-9f66-5b142f2dcdf3","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":59,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"bfbd28d3-b836-48e3-99b1-7c892849fb7b","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":59,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"b03e262d-9630-45f7-9db3-b3ebcc2f77b5","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":59,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"2607a117-7e29-4791-b84a-43c4c40ff258","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":59,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"c8902fe9-5a92-49ae-880c-245fcd586cc8","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":59,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"f05c0fad-fdd9-4cbc-bb97-d9b4220acbc2","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":59,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"44b2755f-464c-4765-baef-912208c26228","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":59,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"84de362d-b3ef-4c37-80f7-b8e4e06f3cb3","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":59,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"65a19322-67fb-4f1f-944a-6f8ab606e33f","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":59,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"ed62e862-c883-47b8-95a6-470d4488e841","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":59,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"162ea091-911b-48d8-9639-8378100ea9c9","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":59,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"1283a6bb-5da1-4826-acb8-90f37456d85b","block_type":"box","text":"Sovereign Debt.","page_number":59,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"988b24e7-2ec7-4f95-8d19-fb73904237df","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":59,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"7619c30f-ac2e-4674-a2b6-bf6f0526bb3a","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":59,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"0133ebe7-61e7-40f8-a04d-c443442463ea","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":59,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"117e52b7-3776-45cb-abe2-ebf6dec771fe","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":59,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"8f6d391e-0691-4331-83f8-9b10573c0e56","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":59,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"ffb06da5-7993-4200-abcc-abac01cbc6dc","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":59,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"bc9e3f7a-a490-4963-957d-006c671dc92d","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":59,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"077359c9-053d-46c0-a67a-71a9dfe0a7cc","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":59,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"9d68ede7-48e5-4f47-9706-50609e6a91d3","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":59,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"bc5b73e5-a548-479b-8881-69c0837fef67","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":59,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"d03f339d-613b-47f3-b4a3-fa69c4229947","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":59,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"4b1a2e91-6c32-4ec7-ac1f-e82f1ab19e9c","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":59,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"e8b34ce5-66ef-4ad9-a644-31d01219a6ae","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":59,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"a66239fa-c8dd-46ba-9d97-745cada58d59","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":59,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"2bf40777-064c-4643-804d-8f1d4ae4429c","block_type":"box","text":"debt.","page_number":59,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"03372723-2fec-4d7f-b80a-46cfad8c551f","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":59,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"9630fcca-1f17-4a45-8cef-6ec0c42a6d5c","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":59,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"5669a157-fcd2-4da4-a9aa-6f68fcf4f1ee","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":59,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"8b23190d-34bb-4744-a8a5-b13437983142","block_type":"box","text":"II-30","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"291c1ab3-a276-4c08-82cc-20b3f54f320f","block_type":"box","text":"NM0926U-5975843-59/228","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"19ed4d77-5b1e-47d5-a18a-15ff9976b142","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":60,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"2ed9ece6-2500-4a40-9cc5-5f2f7a36d54b","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":60,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"c83835fe-9848-4eb3-ba9a-281a85415b65","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":60,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"75286b4e-7a5d-49ea-8b15-b22f8bdf2f6d","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":60,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"9da60e51-bf5d-4370-b39d-97e821960cd3","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":60,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"fb43b39d-ee01-49c0-a630-e56b2c7aec69","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":60,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"013d6a74-a38e-4fc2-a648-0a72407de7db","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":60,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"bd41b338-cc96-4910-b3fa-7cf91bfd8af2","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":60,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"abdf1b49-926d-4476-866b-39a14697c6c4","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":60,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"cb66dd76-9050-43c6-85f5-a2cded8c8209","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":60,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"c906479c-a53b-41cf-8736-ab2a36799e7d","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":60,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"35b08d9d-617a-400a-b8da-d661ba3722b5","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":60,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"6781c5f8-22e3-4586-8a93-88c865293b36","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":60,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"76526c8d-1c33-4514-bfc3-b9f27694ecca","block_type":"box","text":"in the Fund’s net asset value.","page_number":60,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"0a373152-83fe-4e6b-9676-680c8782d1f8","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":60,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"46e5a7f8-01da-43ff-a4f8-8ac4c9b9894d","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":60,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"821e53c7-0f1d-4da9-9e25-01af84a4d148","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":60,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"2023b9a9-1fe4-4edd-ae15-650c2e51a7ac","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":60,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"9407b7ef-9219-4c5d-a537-15565f3524c0","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":60,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"d25d1ece-df0a-4c2d-b777-d4c046b1d5a3","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":60,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"f3352771-c511-4c93-a441-f9205fb5cf00","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":60,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"d02a11c2-ad85-45c5-bca7-324a1c745885","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":60,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"f0e802ca-8c37-4ed9-b2bd-0c59f2b6c5c5","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":60,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"3b50db25-b735-41bb-924f-9f6ec1004eff","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":60,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"972d83a5-4661-44fb-8c06-7e31e4340bd6","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":60,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"40968e36-5b9d-4cd5-84f9-11ed3a3b3b91","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":60,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"ce2b5d96-a389-499e-876a-1c670107aefb","block_type":"box","text":"United States for trade. 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If these","page_number":60,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"76eee41c-81b8-449a-88b2-fbeee40360e7","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":60,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"bb2ef960-581e-48af-866e-19a6c2e652dc","block_type":"box","text":"Fund may invest.","page_number":60,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"4c2eabb6-0c49-46c9-9fa0-4c385234d231","block_type":"box","text":"Funding Agreements.","page_number":60,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"4bdff17e-fdf7-41ad-a9f1-e376849cb535","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":60,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"fabd8461-2e3d-4333-9fd4-d17d7a4b38f7","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":60,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"7cb7a989-296c-49b0-a273-65f84e032c87","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":60,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"907258fd-cac6-4d29-94b6-f1e958519321","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":60,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"a27e0a30-a9d2-4d8b-a1d6-0a161fe481ac","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":60,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"655a5df6-7d03-42c2-8a6b-3feba43889e7","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":60,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"ff2d218b-8c68-4511-89c8-881cc988a967","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":60,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"ee2b429a-5e61-4f84-8ad8-d85e23a85658","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":60,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"c344b120-29b0-4c26-abfb-70fbe4708ed0","block_type":"box","text":"Guarantees.","page_number":60,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"f22b0be7-2b65-4aa6-8c98-b5f4553c4d8c","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":60,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"7e471404-4ebb-43aa-8d15-69e2cb466591","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":60,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"2c8d1a66-68bf-4b7c-a3e5-37798fab3a83","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":60,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"d70d32b2-723c-44cd-8162-72de753be1ce","block_type":"box","text":"Illiquid Investments.","page_number":60,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"aedb6d42-8089-41b9-aaac-3c3254cee9f6","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":60,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"d75138dd-cc91-48a2-8613-a80041fef8e5","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":60,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"818bc60a-ca15-4692-bea4-39e5335c3ca1","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":60,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"16582c88-28eb-4fc1-b115-214779f6f484","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":60,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"2dbd3c5b-3f1e-41a0-a846-1c947fc101be","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":60,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"f3c80426-ab0e-483a-ae3c-ebaf62486302","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":60,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"32854f1f-e0d4-4110-be13-7ebfbe570526","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":60,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"810058fb-8594-4199-b6d6-3935450956d8","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":60,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"c88ad3b0-ceef-4a39-af69-f835c8656379","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":60,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"8b32bf76-803e-4bf4-81d9-ef913389c630","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":60,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"db3fa784-4619-4453-a236-657cb0deb647","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":60,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"d99a461a-71df-495f-9455-3fa541006b94","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. If illiquid","page_number":60,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"3b1edbb8-9363-4ba0-a090-e3bd7b1be1db","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":60,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"31a1e6fa-bddd-4b8b-b05b-f751b69c51bf","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":60,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"c597a19c-a5a9-4e48-8dae-45b3d83beee4","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":60,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"c37f89b6-ef90-40d6-b8ab-d347ea59bca1","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":60,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"e9f8e5a5-66d8-4a7a-870a-52a87a986649","block_type":"box","text":"market opportunities. The risks associated with illiquidity will be particularly acute where a Fund’s operations require","page_number":60,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"bda27f5e-fbc8-448a-8693-2f2c83ad3c2e","block_type":"box","text":"II-31","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe18f212-f008-464b-95ec-b6e091c22e55","block_type":"box","text":"NM0926U-5975843-60/228","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fd8af097-1d26-4274-8aad-81a3430594b2","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":61,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"f1aff965-abfd-456c-87ab-f26908f0324e","block_type":"box","text":"short-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":61,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"9f2e1122-5c98-44b8-8bd6-153e696fedd1","block_type":"box","text":"Index Funds.","page_number":61,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"c2cd6abb-3878-46e1-a808-c2228e5cafdd","block_type":"box","text":"Cash Flows; Expenses.","page_number":61,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"e6b01ed6-869a-4f6f-bb6d-5012e6e66650","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":61,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"27b2b185-cf50-45c5-9553-7580221376ca","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":61,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"b881acce-01ed-422a-b2e2-393ccea1225f","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":61,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"c4999230-0b7b-42be-9711-95205268273b","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":61,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"e00241f7-60b9-46a1-83c5-bf88893a717d","block_type":"box","text":"the investment performance of each index is a hypothetical number which does not take into account brokerage","page_number":61,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"57700b58-7556-4994-8c4c-a5ccc836a649","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":61,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"4fdf4e30-e157-48d6-a5d5-d7c010964a1e","block_type":"box","text":"(","page_number":61,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"b5aa2715-962b-4fae-b280-6bb3b4ebda20","block_type":"box","text":"e.g.","page_number":61,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"98fa487a-f652-41d1-a43d-8d4f12523caf","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":61,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"07ce8dc7-55e6-40ba-94a4-a899e0a7f4c7","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":61,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"8431ea87-927c-4cc4-8675-f52d2cc9aa98","block_type":"box","text":"particular security as an investment.","page_number":61,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"356f440d-9b1d-4ffd-865e-9611f2b3abf8","block_type":"box","text":"Tracking Error Risk","page_number":61,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"c490485a-2d0c-4b30-ba60-e6dd0e2a6740","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":61,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"2db04baf-0250-4f04-8925-0cd428c24799","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":61,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"330c6d27-3b00-461b-8852-0ad2f43cbcb3","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":61,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"e1aa39e6-1134-42d1-9301-4ed8527ffc44","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":61,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"085e8660-d5d6-4c45-9a4a-a1db05fbd4e9","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":61,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"3e80c528-99a1-40b8-9727-cc862d38852d","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":61,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"367ebd4b-8ef2-469d-9cb0-a131939f0316","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":61,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"a9c98db2-217f-4ba1-bf25-2fb763598301","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":61,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"f5a7f5d6-990e-4381-8dec-9680449683c6","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":61,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"18d3e4bb-1a75-4fac-bc48-7d01bb5a3219","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":61,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"88cee1d3-84ec-44bf-98b8-42be87c2f4d6","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":61,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"5a5a6228-3e9a-4e54-b0a2-386662aa1387","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":61,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"991f6ae1-6c6c-4528-98b2-3854ee700e51","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":61,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"05c403b9-b241-4a2c-b3af-9bfa27c72137","block_type":"box","text":"price growth that does not appear to be supported by publicly available information on the business and assets of","page_number":61,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3e511cd0-bfc2-46a1-9354-84d04cd9237b","block_type":"box","text":"the issuer, unusual or significant short interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":61,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"84a1dd13-dadb-41cf-9d77-1465689eaa3d","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":61,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"d0b883ff-b162-45cf-b080-655c7c7c1302","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, alert the index provider as to the alleged issue. The","page_number":61,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"9ae0933a-ea1b-441d-83e3-1978375b3706","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":61,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"7f343563-7f10-47ff-90fe-b5bd2f6d3090","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":61,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"2f845dbf-d864-4d2e-acbb-5097368d5972","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":61,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"1499a0bc-fdea-4229-a309-862e3229fd0b","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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BofA is","page_number":63,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"f57e8770-2082-4ab1-b5c0-f3a99dca66c1","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":63,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"549355bd-e92b-4421-8aa7-02a4f211f439","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":63,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"ab85a335-955c-4523-8786-33801f3db9ef","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":63,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"be773d2c-9ceb-468d-a833-3cf20e5e9a0f","block_type":"box","text":"completeness, or otherwise.","page_number":63,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"6d1e7637-19fb-4755-86ca-92f21b36943d","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":63,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"8141f943-614e-4bbb-923a-16b613c020b0","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":63,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"52165186-1f14-4750-b57b-df4e75a243ea","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":63,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"e6ee6920-6de0-46d7-ba95-f9034908543e","block_type":"box","text":"Indexed and Inverse Securities.","page_number":63,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"500f0c9e-a83a-410d-bb09-0f643ea4c0ee","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":63,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"fcdbe7ca-20cb-4a16-9eea-f8e037875b18","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":63,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"97ff8dbe-f2a8-4c28-a940-3cbd85f01e9d","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":63,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"d31e508c-273b-4e40-a01c-ff9538790b02","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":63,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"ee366fb6-acc2-4548-ab62-51c46c3d7cc5","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":63,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"1b46c14e-7a8c-4bad-bdee-4f8608c5d568","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":63,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"6256ba58-809f-4e1e-8b48-ec65952b2bba","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":63,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"9d9c7126-9239-414b-b8bf-97146a3d2c1d","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":63,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"4e36d6ee-13d2-40dc-846a-269369b4d4b9","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":63,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"32ae96ac-d333-47d6-bc61-20249abf41b2","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":63,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"4eabeb79-c84a-44f7-bab3-ce1c988fd0d5","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":63,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"ed7f76fd-9d0b-4bd4-83f1-8897f5ff4c51","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":63,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"6f03ad89-5ce5-446a-a779-29f609c51549","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":63,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"6c04e067-7a65-4aac-845c-89bab92edc60","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":63,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"fab53a6c-e069-48c2-8513-dae58589a726","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":63,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"b519be64-86fa-4c98-9f36-79ea4b0835cc","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":63,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"b414d116-a4c6-4661-ad71-05e23f8be9e9","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":63,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"277028b9-f285-457d-9e14-449c50ba6a86","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":63,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"7366d1f6-e1ac-4dfa-9ce1-f930097938d7","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":63,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"268c2a04-b858-4dcf-8338-cfc7ef15d512","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":63,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"0277049e-0369-474c-b98a-10e197a58f45","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":63,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"6438cd60-af0f-4fcc-a0d3-2d859c17912e","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":63,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"a279b9c8-0c2c-4d0d-9e11-ca434379bb99","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":63,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"8ef551ce-d17b-4cae-88f0-353a52eeb3e8","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":63,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"3faa8437-e696-44e5-a24b-65a43e90b895","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":63,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"beded122-7122-4baf-a732-4a6d444f7acc","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":63,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"cadd189e-37cf-4bd5-a163-2e43fb45a58c","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":63,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"274c309a-95fd-49f6-ac16-d94e6a299b2f","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":63,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"a8f12ce8-e745-4ee9-98bf-f8de06116c68","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":63,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"736c32ee-19cd-4455-a6fe-0e42c7138f9c","block_type":"box","text":"Inflation Risk.","page_number":63,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"1f4b281e-80b8-4a1e-bbcb-6bff0ed9ea4b","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":63,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"be50214e-4cc3-4fdf-94e9-587e46e937ae","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":63,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"c5acef60-d68f-468c-940d-4df03e270414","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":63,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"0afec246-c7e8-4e0f-9d50-705d7ed938e5","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":63,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"8074b7f5-1bf3-47b2-811a-4d9a30e91ee6","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":63,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"1fce15a8-abc6-4a44-9d80-574658f57b4d","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":63,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"39cd0996-95ca-43fa-b2f3-7ceaa7139826","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":63,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"e8bd1770-2b7d-49db-93a5-86e257ca71df","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":63,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"5fb1a149-a4e1-4f58-8df3-458d0568ec85","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":63,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"40a609a5-4dbe-4af8-9707-09ff75579bf1","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":63,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"84ca85d8-610d-414f-aeb4-02acd71ac7f7","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":63,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"b3d8c7ce-a819-47db-b1b7-e3c30025c3f7","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":63,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"420b85a2-c43a-459f-a7ac-05829c64911f","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":63,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"93569837-f032-41ab-8e32-24e6e8300235","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":63,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"28a05a93-1ebf-4e11-b92e-47f4d26780b5","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":63,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"b9aa63fe-9b7e-4bf2-96e3-a6d006e6a8bf","block_type":"box","text":"II-34","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"277fe58c-f6b7-438b-b5b3-830f6c9e6041","block_type":"box","text":"NM0926U-5975843-63/228","page_number":63,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"85e9d5d8-8507-42a0-9af6-5cd6dbddfd65","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":64,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"69d16fcd-a72e-4c20-b2d7-745869b1e07c","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":64,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"92e1d9e3-5f5a-47c3-aab0-70b13d558f89","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":64,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"12c13f6a-8e90-4c03-a132-be7f0e8160c6","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":64,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"20fc49f5-f5c6-4a17-9721-38af39948aaf","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":64,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"51ec9a6a-0a51-4299-a49b-0e59a4200143","block_type":"box","text":"be available for very limited periods.","page_number":64,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"6341f27d-77f9-44d2-9a21-0985f933d711","block_type":"box","text":"Investment in Emerging Markets.","page_number":64,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"307cf0a3-9faa-4f68-ad47-f2a6ae4cc36d","block_type":"box","text":"General.","page_number":64,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"3e035689-40c3-43cd-9508-5a4ad0f13b29","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":64,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"c6cc9fae-2a6a-49fc-9348-11e7356c2640","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":64,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"6c070217-15d7-4365-927d-c43c88cc4271","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":64,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"cd769780-2600-44aa-bfbe-7f179c650667","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":64,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"63fc31a1-3fe8-44de-a55e-fdf8203e2e13","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":64,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"c363797a-6b7c-413a-bab5-1b6bbdf17327","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":64,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"1543cf23-15a8-476c-aa1b-2c7566e1911b","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":64,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"0a6041ac-e4a6-4a08-bf29-f5dc05dd08e0","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":64,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"b0dd1efc-dc48-4d55-a6d6-2c5cbe580b36","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":64,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"d7085b6a-ac62-4a4b-a517-e5af45fb8312","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":64,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"9eb9564e-6ad4-4f82-a91b-cc4a98033a65","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":64,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"7dc8dca6-dee0-45e8-850c-0b4b82c8b339","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":64,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"d32b1b17-d32e-4aa9-a901-d51b367bfc47","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":64,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"bfd184ba-d7b4-4d63-8d22-301c9ae68088","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":64,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"3321101c-799d-447e-8d79-a49bdeaca2dd","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":64,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"dc08270f-f406-4c8b-8bf3-76978d612daf","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":64,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"f6b5af65-7b5a-4771-9cfb-9ef7e6707f0b","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":64,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"85ce87eb-3192-4e2e-bdce-89a1e3432a3d","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":64,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"0d7de75c-6a44-41c5-bb4d-dcb255ffe2c0","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":64,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"874f3306-669f-48e0-bfc6-22ec83955228","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":64,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"df52fc0e-1bd8-40b8-8869-a8b191a5ab9c","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":64,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"1bc8f503-96f7-4b48-9f35-7674801f7971","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":64,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"ec00cea2-3b9c-469f-a6c3-72e8cb33c10e","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":64,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"1b94c25b-72db-4865-a1ac-601f43ef7b85","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":64,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"a3a40700-150e-4be4-b3a5-77bae6573606","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":64,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"da84c07f-bba8-4ccb-a66f-ecea9cd07187","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":64,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"4e460a9e-c1bf-41fc-a233-78b596c4cf82","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":64,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"e139b1f6-a95c-49f7-895b-100a293855d5","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":64,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"b95f2b87-525a-4cc1-886e-5bdc97c83d01","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":64,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"7fcaf59c-0f86-4192-9083-56acfddbd4f3","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":64,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"2030a924-71ab-478d-8c6a-74d4b2bf480a","block_type":"box","text":"volatile than investments in more established markets.","page_number":64,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"b7f0dd79-8b07-4425-a12d-8e8a9e5e14b0","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":64,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"d03d74d7-a411-4c85-b5c7-3c764ccfe10a","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":64,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"4299a143-d5b7-430f-8d55-cffeec13fe93","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":64,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"30b16e90-84c6-4a08-b554-b5692e9a404f","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":64,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"af91b6be-0693-49b4-a2bb-df8077f55c8a","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":64,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"a3371ca6-78de-4132-a3a7-8fea5af93ef4","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":64,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"d7dca876-bf64-4a96-822f-250419d8c159","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":64,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"de64c4d1-393f-4201-8ae1-cfc3a6e21d50","block_type":"box","text":"acquisition or disposal of securities.","page_number":64,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"944ebb2c-40cc-4cab-9597-c5c863fad2d6","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":64,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"7017ffb7-03a5-49b4-8496-e1df5413d65a","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":64,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"714ef2b7-d6be-4575-8af5-1557eeb74016","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":64,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"3bcd99d2-599e-46b1-b207-ae633df106d1","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":64,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"53f714f6-7136-45f4-8df7-c2106db1e374","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":64,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"41cba60c-26f4-4972-b3d6-5f16f3cdb6ef","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":64,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"8595c3b8-9f91-4e64-8639-1755ea9fc5a2","block_type":"box","text":"II-35","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c642eea7-c62b-4505-8ffa-a7ddd3afc614","block_type":"box","text":"NM0926U-5975843-64/228","page_number":64,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e5afbe77-bd08-4e5c-bef5-dc65cf2a0456","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":65,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"fb640bb5-2d9e-421d-9c1d-4d967eadb843","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":65,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"bbb7909c-5299-451a-8621-8c871748ec2c","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":65,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"5051e3e6-f17d-4f69-8060-dcd923543199","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":65,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"9549a5ed-15ca-4a99-b6bb-e7809bf6fb25","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":65,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"f23daf7a-1ec1-441a-8926-d073d6482d71","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":65,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"db8bc1aa-9b32-468b-b233-7283fd149647","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":65,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"724ae241-5ac0-4910-89d5-9b324b6be325","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":65,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"7057852c-ea49-4ec4-b2a6-1faa6d868f65","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":65,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"4886d9f0-e4ad-4d98-9756-4b83ea0ecd4e","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":65,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"c227b0e3-85c7-4452-9123-c4791ba95123","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":65,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"52d848a3-fa5a-44c4-920c-75f3821dc775","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":65,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"4f3b5ddc-e8c5-4fcf-9783-7fbe7ff9a150","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":65,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"1f18cc99-263a-45d3-a02e-1cd49081a388","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":65,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"f75f5f81-838d-4728-8c1e-abc5ddf2812b","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":65,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"136b790a-85cf-4ce7-be41-66dbbad79f14","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":65,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"9138bed7-3402-45a3-bf09-a42dbc548996","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":65,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"1bb14b0b-06f5-49b2-a8ff-aa578b5b90b4","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":65,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"58a0597e-3d0a-413b-ba55-1c22fba7c949","block_type":"box","text":"performance of the Fund.","page_number":65,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"f49fc9aa-44cb-4373-82ed-da0532d4a079","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":65,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"ed3c11b4-bf65-4ab1-8915-d20d3296e597","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":65,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"6e8c5d04-8237-4780-b2dc-1a0c4cae1b8a","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":65,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"ce7c6556-9d91-4da8-af8c-d16bc6fafa66","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":65,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"ee450840-cef3-4bd4-872a-d956fb32c9e1","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":65,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"bd77efde-957e-471e-aa52-a507de6cbe75","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":65,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"1dc87114-e641-4e35-abbe-5ab3ea3993df","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":65,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"f6b11de4-ab8b-4a2a-bf08-7318a1e388a5","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":65,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"28c2616c-f646-4bb8-9609-999291e60474","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":65,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"653e2835-07d1-4ef7-b793-a4e19da26f07","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":65,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"64b42830-4f84-4cf1-94c9-2e282579e665","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":65,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"3997edff-dfdd-4b40-84bb-b4437307fa49","block_type":"box","text":"affected by a variety of factors.","page_number":65,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"105d45a9-66db-4dd0-90c4-ae8ec5fbe5ac","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":65,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"0b3f1fba-49f5-490f-be97-b455439a5de7","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":65,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"f7a93f2b-83e4-4c0f-babd-8c81c5d53bed","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":65,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"36997a28-f9e3-4263-8d59-791b7401cb39","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":65,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"7d1fa56c-2564-438d-a9c2-bc1e12e67264","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":65,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"fa60671e-21a6-497f-82b3-d882e48f874a","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":65,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"e2ea1a5f-5fbd-4a88-9ab2-d55c6bfad6fd","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":65,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"dd86ae0f-bc1c-4269-adfe-0681a3a1c7bb","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":65,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"021cc6be-4489-4340-95f3-7f651034a639","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":65,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"fed90d5d-7fde-4ea6-8238-ab1cf4c8b060","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":65,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"6c2503d7-e904-4025-a9b2-74a3c51e7444","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":65,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"85d4259b-5aba-431f-b722-b023f98d9a9a","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":65,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"f5503f2c-783e-4395-9815-cf5cfc8c8d0b","block_type":"box","text":"nations.","page_number":65,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"a6d2ffa0-ba7c-4f88-9214-4c92dc314860","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":65,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"75420038-4187-4ea5-aec0-25e52194f11d","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":65,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"c1eb6334-bacf-46d9-b172-3bf87d40250f","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":65,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"4303b658-8efc-4bbe-9177-d06ef48ffb34","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":65,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"cb704bee-3a46-4131-a246-0dec900a5989","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":65,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"94963504-ff30-49a7-b4f0-ba2b6e75c86f","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":65,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"5695707f-df0d-44ea-bbbd-07caef53def6","block_type":"box","text":"market Asia-Pacific companies.","page_number":65,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"61892f05-209a-487b-afe7-70d790ce6000","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":65,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"eb4b2b01-c40e-461e-9fd3-68a7c6e2b1c7","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":65,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"a1842e63-fe26-484f-bf66-f68aa816a77c","block_type":"box","text":"services for such securities outside such countries.","page_number":65,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"3c6c501b-443a-4c3e-8bb6-7bf3f0cd824d","block_type":"box","text":"II-36","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"31177110-fc61-413b-8b94-69fff47c3fb1","block_type":"box","text":"NM0926U-5975843-65/228","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d0688ae9-6acb-448a-b3e4-cd230c5d30f4","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":66,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"0c385633-a6d9-4cf7-84e0-4403d62a7501","block_type":"box","text":"to commercial banks and foreign governments.","page_number":66,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"130611c1-8127-479f-bd01-ff97866cf651","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":66,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"4911c872-c9f6-4ed5-b89f-9e2da3f7cbd0","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":66,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"23598fda-ab75-4e7d-a613-0426e2a944f3","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":66,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"3e823f5c-b379-4508-a9a4-43e462e2460a","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":66,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"1e22c71c-2adb-4a41-97a8-87dc4f08a1a8","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":66,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"20cf0dd1-d7a8-47b7-93b0-f4168a7e96af","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":66,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"da04fdef-b166-491d-91c9-c0f8e31356ff","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":66,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"76f81b2e-8838-464f-9f56-4ffcf41cb284","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":66,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"7cf4a9dc-9bc4-4cc7-8086-52a7b34d5f7b","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":66,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"dc41fe2f-bffd-433c-a2e7-c7a4a5a21fb9","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":66,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"5097e27d-bafe-4657-bc70-8ee4a9933d26","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":66,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"450e38d2-1930-4cb8-9794-047a02362de3","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":66,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"7a596f45-7c90-4332-aa88-f56d7905e350","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":66,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"71986d1b-34e1-4629-afcd-990680556122","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":66,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"8165de7a-f6ff-4386-9883-1c21811ab3f6","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":66,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"7b907289-3999-4ed4-952e-deb4dd14827c","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":66,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"f23e1293-2c42-4cca-9d5f-6adcdf6803d7","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":66,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"40332326-f662-4fc5-a4d5-8c96b246ad24","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":66,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"065ffcbe-43fe-4af5-a466-e37a654d55c4","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":66,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"50340d06-d6e4-427f-979d-87f836590229","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":66,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"d6bc8322-66c3-45fd-860d-7087e8c17b1a","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":66,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"337355ff-8f26-4128-9a86-329f544ffe6a","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":66,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"4256bbef-0369-4072-b519-ceaad0f3f9a3","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":66,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"6b671e67-c0e7-4a7b-9198-29af95c276b5","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":66,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"0ff1374b-00a5-4c20-b933-5d1b18db4b78","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":66,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"ac0ceec1-45e9-4bef-816a-5cfebc0c1ec6","block_type":"box","text":"investment at that time.","page_number":66,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"dc647e95-0ced-4d4c-abc5-7e9bb2276dca","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":66,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"dd2a3fde-0f4d-4e5b-8def-1425abad0549","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":66,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"cc2301b2-bf29-4e76-9ce1-2167f77f1fb5","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":66,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"5b5c8ef9-0bfa-429f-88fa-1eb5654bcb0f","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":66,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"7fa9e22e-5618-43ea-8440-204f681f8cea","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":66,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"e74713a4-4b4f-4862-956b-fa0a06a0bac8","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":66,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"3d630ec7-4752-4388-b407-96dfdc173f98","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":66,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"dc914706-bb99-4bed-8093-973495e23f2e","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":66,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"a31fda32-66fb-49c0-b3a6-a98d281dc8d9","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":66,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"9caa565f-62be-4250-9d5f-5c2b48122dd6","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":66,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"82da1a6b-4cc3-4d60-857e-89da843b56ae","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":66,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"01beebb8-8858-47aa-80d3-e5ec454e53cd","block_type":"box","text":"government).","page_number":66,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"c89aac1a-8c8e-4cdf-920a-a89d4eaae257","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":66,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"7d459cf6-47b4-48ea-a540-8a841edd6680","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":66,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"317a3de4-b4dc-4af3-9fd1-d69d932285cf","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":66,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"a1841ea7-14d7-44ff-a24c-cc1cc439fa52","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":66,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"0340d27c-5063-424f-bb05-e056f507a369","block_type":"box","text":"foreign banks and other financial institutions.","page_number":66,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"22e35a04-d5c4-4884-86fe-f409ebe1edd4","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":66,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"96b6097f-19eb-4e8c-b6f8-bd3867e24020","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":66,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"8f51ef4b-88d8-4ddf-9f7c-13862c5f103b","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":66,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"a4bcedc3-1b3a-4215-8003-46c8b95a0627","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":66,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"5879938d-69f7-469e-80be-1074edf272ae","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":66,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"83f31bcd-83e4-4cfe-b615-3497de57fa0d","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":66,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"4ef914d1-187c-4fa3-a455-aa8cc21c7108","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":66,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"8a6a35b5-814c-4950-a119-f025c7602819","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":66,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"3810f2bb-16cb-4f84-a143-72f8b065483e","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":66,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"a2483e44-95d7-483b-9c3d-135af8dbaef3","block_type":"box","text":"II-37","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8fe67d1d-c326-4c93-bf0d-fe2bcbf7f325","block_type":"box","text":"NM0926U-5975843-66/228","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"58ae5c07-d893-480b-98db-87b9c4d40a3e","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":67,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"d6813f0b-d7c4-4c3e-a8fb-c0db82c98c75","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":67,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"d7180115-f215-4e7d-9d01-142f8c78fcdc","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":67,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"f35bf5b9-a121-4c41-8084-6e79eac598c6","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":67,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"01fbfa2f-f8c1-4deb-9d7e-ec117fb2433a","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":67,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"67c717c2-88e6-4b7c-b5fd-2afac8e7978f","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":67,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"741959d5-1641-4ece-be36-9baa25ea92f4","block_type":"box","text":"foreign securities.","page_number":67,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"8244e8f7-be54-4aee-bd2c-4d31ac548f58","block_type":"box","text":"Risks of Investments in Russia.","page_number":67,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"0716aa19-63d3-4737-8514-d8046e5b768b","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":67,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"6a646c27-c960-485b-a146-86943a3c0f5a","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":67,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"c57c223e-d5dc-4cd1-b481-74e9a21a80e5","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":67,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"76558c21-09ea-45c5-b576-5e644629c90c","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":67,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"36b62db1-f9c3-4d49-914d-54a992a46bba","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":67,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"04ea2d1c-81be-4961-b46f-313d04627bee","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":67,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"81c57fbc-eb44-49d1-b5aa-013f674c02eb","block_type":"box","text":"developed markets.","page_number":67,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"f1f1bea7-1650-40af-9749-c6dc1fd4bfc7","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":67,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"221f2430-166e-48ed-a73c-87bf04c7a0e5","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":67,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"a70aba2f-6e03-45e0-9936-9c4fcd2e7fd8","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":67,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"e0837029-8a6d-4ef9-a6d2-ea5832f88f24","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":67,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"65a12aca-ff8a-4f4a-89a1-c25bb4cd5ee0","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":67,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"cfaf2d6c-c951-4fe5-846a-47ae9f9831bf","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":67,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"0a984771-479c-4368-80fa-821b760ae087","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":67,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"e0d7639e-2d5a-43dd-b37f-f7138737b1d0","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":67,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"9ee275ed-e3a1-4e63-b93b-aa7704a8f1ed","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":67,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"af7a479c-867c-45a5-9d57-fde676809d2c","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":67,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"16b68db0-a7a0-4d01-81a1-8497f5956d2f","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":67,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"36e87c55-3397-43ee-a847-9ca2c985a25a","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":67,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"3058be0f-f549-4979-9151-4977428815e7","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":67,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"2f8579d0-07b5-43de-8502-608b06a59bac","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":67,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"3ca43dff-0e98-45f5-8149-14e8bbb12db8","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":67,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"81dbc55f-f906-4cc5-a49e-8c51ea2aa5c7","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":67,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"a9231d25-3797-4682-b079-1c0164663fe3","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":67,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"4a07c5d4-0a45-48a2-a50e-fbbc3896502e","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":67,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"f0e8c274-0dd8-422a-b432-8607627cfcd3","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":67,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"12c05388-9efd-460b-8112-9e5c8de66059","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":67,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"b9113924-1dd9-456e-ae08-0bac85e498af","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":67,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"d0c36905-4852-4ad4-bdd4-ee09839fd97f","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":67,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"7c6384cf-c407-47a8-90f9-84b5844159bb","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":67,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"af1c3874-0a00-4c53-a1a5-b36e4a8e9b91","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":67,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"e203ead4-66f2-4bbb-8bf3-62a444189146","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":67,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"f8550658-8843-4ca8-a9cc-878b036cd0b6","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":67,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"594e6858-6167-4f82-b899-fdd366bbc41d","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":67,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"84331bf5-36dd-4f0c-a344-c01b26582ed1","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":67,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"87493553-a430-4b65-8143-b5b8bf09f438","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":67,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"5a07edaf-be9d-4d19-8762-5cea5a6b3377","block_type":"box","text":"sectors globally.","page_number":67,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"501dad5a-d7e6-4ff9-9b20-01543113336c","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":67,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"5f904636-4d15-4583-8795-5871d22b5e0e","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":67,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"a7acb4bd-75f7-4e50-8084-aa8eceebcd1b","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":67,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"38f20062-66f7-4d92-af43-9367f2cd514d","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":67,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"0e3c20dc-48bb-4389-8a60-1e9edb262f5e","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":67,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"e4e54f53-1164-4308-a68c-1bed05ebe428","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":67,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"66055671-5447-4fb2-9403-df55005eef7c","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":67,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"87d99467-507f-4843-9663-fd57a9c31242","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":67,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"9b1972f6-4fe4-4166-8951-7b5a6eb8dd1f","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":67,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"422df4a1-0837-4092-bb0c-64e2bcdfa2bb","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":67,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"98c974d8-5976-4646-98c4-472891d5d012","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":67,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"7dcf82d0-5f64-44ff-a2b5-4471f0234fe5","block_type":"box","text":"II-38","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c28b5dec-27dc-45b3-8e0b-141816d3ac4e","block_type":"box","text":"NM0926U-5975843-67/228","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4aec69fb-8515-4fd1-9cf3-a743d33e299c","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":68,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"40073183-faa5-4e11-9e8f-a04b1efe5338","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":68,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"81acfcba-bf43-428c-98c5-9afa4c44149e","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":68,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"ecc899f1-6da9-4909-8e6e-1147c614ad87","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":68,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"66f1439f-5b7b-4e83-825a-1447ef862879","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":68,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"fe1ae175-bd15-404a-9217-c46119ce5fb8","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":68,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"fbf31f6a-0371-47c4-9b31-f49154c82900","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":68,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"2a31795e-08a1-4f74-950e-1db2a1d131d7","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":68,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"8723f7a9-02dd-46be-9638-9959e1bc964b","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":68,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"550a26e5-f9b8-40cd-8be1-1730f221e971","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":68,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"a0cad189-d4e4-41c3-9d12-f66ed98bdffe","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":68,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"2d67ceaf-6914-4e1f-b9a7-b6e3bcf1a6fb","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":68,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"2e426d16-3503-4c8a-acf3-e036e982b208","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":68,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"999389ab-9d39-4026-8ec4-c6c8cef2b649","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":68,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"181ec2ef-6d98-45cf-a47e-462608e23b0f","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":68,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"fda37613-c39d-4ca1-97c3-a936bdff7fbd","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":68,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"f03471ad-a778-493b-907e-8cd556604fc1","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":68,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"5c46ffe8-5238-402a-9d03-8b63177fb159","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":68,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"29b43057-dd59-4213-87f6-adae303bf327","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":68,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"0ce0fc69-d745-44c5-9f57-c9718cca5591","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":68,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"265d77fe-33f0-46cc-bd56-13861ccebb4c","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":68,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"ed172f63-2de4-45b6-968b-b8359ac1db57","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":68,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"6522f859-d0d1-4215-ad91-cf6fd83bfb6d","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":68,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"d7a83425-1c91-4678-a5a2-02adaaed795b","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":68,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"2ea9395a-d713-4dc2-996c-5f56abc98dd4","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":68,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"a421fc77-9b5c-4a0b-9b83-46bcb22fec6f","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":68,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"3cfcfa8f-f89c-4245-acfd-a2aa0d841c5a","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":68,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"fa74e7dc-8c5c-49f9-9990-829641408591","block_type":"box","text":"impacted.","page_number":68,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"74333ea0-872c-4e7e-894b-a69a1239238a","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":68,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"a6593497-2e0b-48a0-bf4b-f0756dddff4c","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":68,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"8381fa08-ee73-4f1d-9f5d-0d89b5ca5128","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":68,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"43f00558-570f-496e-9b99-6d7b42b5a86b","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":68,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"a175c468-a398-45d6-ae2c-603068b4c331","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":68,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"70623648-a40d-4efd-8b3f-2d8c67619511","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":68,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"872ef90e-8f80-4acd-a8d7-ce289bfaaa40","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":68,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"07a63e6e-194a-46f6-a21b-b96dda56de57","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":68,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"c2774999-3cfd-40b4-aeff-295bcb21a3de","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":68,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"ed2721cd-b766-4c14-b42e-c1832c623ac0","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":68,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"5d4318be-ce90-4e92-ac3a-bd6335fba94c","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":68,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"a5c2ad2f-1d64-4dc9-bd8b-ae14da015b54","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":68,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"f9ab9883-edbe-4dca-ae6e-b6af9af647c3","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":68,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"ed8ddbe6-93fa-49fa-89f7-382bfc891555","block_type":"box","text":"economy.","page_number":68,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"a7fa8bbe-dca9-4e3b-a8e9-9ba30ad9d639","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":68,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"ed8c2ea2-0991-420f-99f9-2d07043353c2","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":68,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"d5f81332-568e-4167-a8b0-9667ecc0961b","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":68,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"ff3ce33a-7d28-4898-af72-e8dd9df51404","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":68,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"d14adadc-431b-4757-abe6-afbf7d4dd248","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":68,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"699823aa-0de3-4f67-815d-256b2a7093ee","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":68,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"5defff7b-9d57-4e85-a271-dd6debd0e1c6","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":68,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"115faae7-826d-467d-8a53-f67d47073bed","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":68,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"f374cc1b-4d07-438c-8582-b37a6179a6ca","block_type":"box","text":"typically the case for investment managers.","page_number":68,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"f5e91b46-f253-4554-8650-066e5bd70846","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":68,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"7857ee54-e8ca-49a6-aaa3-5dc8ae6b0a8d","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":68,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"cfed61b2-6467-4882-8295-db41ebe5c72a","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":68,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"f1050d19-005e-4263-a827-ce46247a4dce","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":68,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"86bf0607-8ba0-4d45-bb71-f88f38c61ad3","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":68,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"7028f8fe-a59e-412c-b438-1b34b06a8829","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":68,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"2b308ac5-7a65-4743-af8d-c9487742dd90","block_type":"box","text":"II-39","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3bf783f3-ffeb-49e7-87dd-d208e152beb0","block_type":"box","text":"NM0926U-5975843-68/228","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0a338477-c297-4ef6-97b5-2c329b4a36ba","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":69,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"c5d7c27e-2d65-4663-9423-feebf04d6aff","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":69,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"c546b50a-1ed7-4788-b9f3-89f73ca33c27","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":69,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"289edc5d-eeee-4c46-a79b-603c9cb12560","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":69,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"afb011da-5136-40f0-87ff-041420a84759","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":69,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"078810ce-1fc2-40f7-989d-becae676f4d8","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":69,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"389f4fe4-05b1-4178-a759-1fa56d8eecf2","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":69,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"41eb9ff5-3bf6-42b2-a451-7f108e830d29","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":69,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"5d664ae2-509b-4643-9399-30276276b472","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":69,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"69ddf52a-9636-457c-804a-1e08a01a44c0","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":69,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"763bbb17-a920-4702-9635-e4e5602641e5","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":69,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"38744fc3-24a6-4311-81b0-10258283ff83","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":69,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"5e2ad034-5ea6-4b12-8673-e92a0feb13df","block_type":"box","text":"will be indirectly subject to those risks.","page_number":69,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"d22767dc-d18d-4825-a1c3-fe5f31507f81","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":69,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"5e1137f6-6fc0-48be-bc79-561e0f039aa5","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":69,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"b6c520d0-1c0b-49c6-bb15-8c79f5bd1963","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":69,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"2420b729-d457-495e-8add-a3ec30afe601","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":69,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"180edf06-fe73-43e1-b976-576a3236140f","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":69,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"d8c7307c-d1c5-4280-b233-180d257157c1","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":69,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"515a3fb5-ca63-4471-8f6f-d11e608801d1","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":69,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"e268dc48-1fcc-4505-b9ac-47cc2ea3a5b5","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":69,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"bc3edb08-9a2f-4486-aa6f-49faf0a1f231","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":69,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"e72260a3-a205-4c96-863f-4af3e925fb09","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":69,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"553aa177-f4a7-474a-afca-83ad2d3a3078","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":69,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"77f824ab-cb92-4389-adba-efbd4f3b7a92","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":69,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"4025bd13-983e-4fbc-812d-f5b0e316fc11","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":69,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"9d35da1e-f8f2-41d8-85cf-956e7d932660","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":69,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"ff09d3a2-e68f-4e09-818e-281c4482be69","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":69,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"aaa6ae49-9074-4e3b-8ebc-3fcc274ef7e9","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":69,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"850a1c67-76ca-4d71-8900-6f531fa2d6fe","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":69,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"00bd509e-176a-4252-bae7-2ae3377c3240","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":69,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"a15c74d3-edb8-4856-9d0f-d9bb2bd3f24e","block_type":"box","text":"impact on a Fund’s investments.","page_number":69,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"94ae4368-ea3c-45ad-be38-c8cedeab36cf","block_type":"box","text":"Brady Bonds.","page_number":69,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"49f53647-1ee7-467f-b939-1e94315275ac","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":69,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"d8072a22-6186-4ba2-8377-b086678765b7","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":69,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"3f87701e-94a5-41f7-b493-901f61270cf3","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":69,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"1c9d2cf8-06c1-4a77-b669-327dc5933d30","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":69,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"4f890a90-d0fa-42cf-8541-27cc878d2530","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":69,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"c32adb74-ff6d-485e-add3-582c5d9db6e1","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":69,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"75a75fae-ff93-4d7d-a82f-27ec5abe925a","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":69,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"e146ee92-677e-4529-8e14-e338095dde1d","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":69,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"02fc21d0-068b-4595-abd1-f1cb875a23d8","block_type":"box","text":"Venezuela.","page_number":69,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"a37c7bf7-42e4-42ac-a24a-6592c5f985ab","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":69,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"cba506cc-2806-4ce2-876d-9de966d4eb52","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":69,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"089d7cbb-844b-43ce-8c97-bd370314c848","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":69,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"a7576d47-3e6b-4a45-94e0-3a0d56d6dd83","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":69,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"fdbd8227-8b80-4ab6-b683-6d7e54c22e67","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":69,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"60797162-b83e-4484-9d35-bdfdda01d133","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":69,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"6fb35939-ed7a-411b-9ab6-7126de95cd94","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":69,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"e0bbfaca-32fe-48ea-8a02-6f9fdbba0ad0","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":69,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"97b12cde-8ae6-4174-b8d9-a91652325455","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":69,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"f8145f66-1f76-43c6-87aa-73c42cd67e37","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":69,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"31f41c17-6e87-4d6d-a71f-bd542c8412a4","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":69,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"e16386ab-0f19-4eb8-9d97-e31d55846799","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":69,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"656805a2-b6a9-46a2-85fc-c41e1bcacb58","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":69,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"33d79f62-e879-499c-9d74-dd120c0bea48","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":69,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"ecc9c09c-b872-457a-b9e6-04a4459a1977","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":69,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"2490a351-dd42-461d-842a-9d174511e610","block_type":"box","text":"II-40","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"724de289-9682-4282-8a8c-50e64217c45d","block_type":"box","text":"NM0926U-5975843-69/228","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9960190c-4139-4fb4-9ce7-d15fddcdef45","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":70,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"bad52a8a-3a26-4d19-8143-3f1ad6543a02","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":70,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"782c63f5-7c1b-4f46-846d-d70b813654f3","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":70,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"819c34ee-891f-42c2-a268-81331353d948","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":70,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"740c9914-2dd4-43a1-8b74-90c7ce3f0689","block_type":"box","text":"China Investments Risk.","page_number":70,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"244b69bb-85db-4331-9361-52f360528deb","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":70,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"d6e5bd03-0ec9-41e9-b173-34a04ae4c542","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":70,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"9d73eb33-aaea-49a2-ad3e-5ef0af213b46","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":70,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"35fe88b5-1feb-43c2-a2d3-bda60f1cf63a","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":70,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"89f363b5-61f1-49c1-be7c-b2f24679ba0c","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":70,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"e45e5eb4-94f3-4f75-8e5a-f4eb864c2e6d","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":70,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"9df1da3c-57dc-4750-84d2-03c5a6925f09","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":70,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"f0eb93ed-3741-476b-a2b5-73bac8fe8494","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":70,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"fd5f8e25-8104-4cb8-9a02-4b3eeb25af4c","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":70,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"1ef0fc40-51ef-4ae0-92b7-618bb5afab58","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":70,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"0bce709e-252b-4435-8af9-1a8f0254ca3d","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":70,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"e266f16c-6c6f-4935-824a-458fda4b545c","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":70,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"5b816ed0-287b-4995-b173-5ffedcfd0857","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":70,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"8a7d378d-1c94-49b5-bc66-7bbcf38d95ba","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":70,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"0f87541c-9cd7-468d-921c-426532d5075c","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":70,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"ab11a6cf-fd7d-4173-8b14-698eecfd97a5","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":70,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"b8a02cb0-87b7-447f-8595-6f8e72f56662","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":70,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"08bd02cb-ca14-4c89-8ecd-eaefd6df2a4e","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":70,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"5aecc766-fedf-4f22-a87e-454a18f56c6e","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":70,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"5aac8e60-cef0-43d5-9812-706b511cef17","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":70,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"c2e853a6-9cc0-4b43-8d8f-a92ca0643561","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":70,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"0063dddc-cb7e-4733-af3b-933231953a6b","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":70,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"9d3e79ba-4a92-44fc-80b8-dccf9c8fe076","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":70,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"754c2b43-e17f-474d-a874-f5038133687f","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":70,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"18cbb283-f4d0-421b-bd77-267fdb9b7bfc","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":70,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"35d7be1d-c81a-4b42-bc2d-1b04f190b78c","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":70,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"4bd6a7e9-8216-44d9-9857-6a970fcd4c5e","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":70,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"a34176d1-5ad1-4f5e-bafc-a794ff2979c1","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":70,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"af0779a8-9760-4d48-bb73-91cb11333b4c","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":70,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"38c2c889-9b3c-47ec-bd2c-312bb45cfebe","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":70,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"41eec0c4-2be1-4d7c-8279-f158ae448a0e","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":70,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"9663b26f-e3a1-4b26-9ef2-518e0065c584","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":70,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"e79030ad-03b2-439a-83c8-2eabff6462d9","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":70,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"b027466a-55dd-40d3-b06b-c6c77b0c32cb","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":70,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"54f1a9e0-1164-49f0-ab37-25e45ba54a71","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":70,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"73adbab4-c115-4533-bbb2-0812c5e04d6d","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":70,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"8f5bc6c5-ecc3-48e6-896f-eb51242d1095","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":70,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"1c905d7a-bb1f-4bd7-90c6-2b6edd2f2390","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":70,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"c1e12d98-d6cf-4696-87b2-e65e924fb282","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":70,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"6eb87edd-8406-460f-a328-f1733ee2f128","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":70,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"a44d78c3-f7eb-4100-8ab3-9589ba00c3f9","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":70,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"0f621e63-3f2a-4299-8da9-ce245f8582f0","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":70,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"e2dbe4e7-9c1d-44c7-9269-f3477a206649","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":70,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"4c1a9336-5b14-4d1b-849b-086aea4f191e","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":70,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"701ac977-9882-4c35-b8ee-fe723cb1c4b4","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":70,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"ff2d9a29-d574-4866-b11b-bad45f19d78e","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":70,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"e0f6047a-15aa-4189-b55d-35cff42f0390","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":70,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"be895632-f3e3-4eb7-8481-a0bbe22bda87","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":70,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"827c6369-34d4-4a95-a6fe-780404431cb4","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":70,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"17bf6614-0e2e-4329-a907-5cbccbdbc420","block_type":"box","text":"sub-custodian.","page_number":70,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"6c91350d-0691-4054-afc3-973045a0143b","block_type":"box","text":"II-41","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1b0be895-2a00-42bb-a0a3-7dd89e6963e4","block_type":"box","text":"NM0926U-5975843-70/228","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c2256673-0e02-4a83-a6e7-62c059f8a095","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":71,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"f2b5e506-d62c-4f74-8d35-eb670cfe887a","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":71,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"b279c85a-72fc-4dec-b39e-d079ffaf94f1","block_type":"box","text":"on investor protection considerations.","page_number":71,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"6ba17237-4b51-47e7-bf13-3870aa420d45","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":71,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"76e75616-0a13-4ae8-b901-dde1b158319e","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":71,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"5c21905d-27c3-4a29-b81b-7b60ecffe8ad","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":71,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"81d1ab3d-deb1-4976-9fe9-db1c176108f4","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":71,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"3aa935a0-4a3b-4250-ad07-7ff6ebce7bb8","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":71,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"0d837d49-0724-4354-bdfa-eb6f135f8294","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":71,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"0b1cf289-569f-440f-8310-8e96ca6b4372","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":71,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"c9c72480-738b-4610-94f9-ff333365867c","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":71,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"9880935b-21f5-4596-92cf-eafa8d0d27c5","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":71,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"c9dc4039-38a7-475a-8aa0-ee1f85ab8d8b","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":71,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"6d6fb295-8118-4242-835e-cabce469e6cc","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":71,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"d0ced97f-6d15-4450-88b9-ef9c245c7e0e","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":71,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"d7a39f52-b4f3-473a-95d6-7a6af7c7f2ef","block_type":"box","text":"accounting firm.","page_number":71,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"16bc9fae-7f7d-403d-bdd7-4b4137fe23c0","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":71,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"1f0d5f19-cc45-46eb-a871-6e0e9d4e7455","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":71,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"6f904e51-c480-4e06-8267-f64b2a390ca5","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":71,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"4bbd5ddf-2da6-4e5b-83ed-5f98cc1a28b6","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":71,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"a3509e36-a125-4785-8fc9-0757d526c7c0","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":71,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"4e14565f-ed6f-4569-bff0-ac847608c0f4","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":71,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"0372b566-1857-4140-99d2-74c364e76307","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":71,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"47802b88-e71d-40ca-91b9-293816ef66d6","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":71,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"e739d086-633f-4fca-9cbc-f49def3bfdf0","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":71,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"eed08d30-617c-477a-89d9-b684487df066","block_type":"box","text":"RMB (“CNH”).","page_number":71,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"d2f6b241-d21a-4410-8cf5-2e90e18b4541","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":71,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"6f950712-bd82-4fd0-8fbc-7845cda269ab","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":71,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"1f6b76ad-cf16-4ce3-8588-891ab2267fd9","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":71,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"1086fa11-51e8-4510-93e4-d7c52c8177fb","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":71,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"bbc34179-a4b3-452f-9e8e-01f973590d94","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":71,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"ac01e014-be71-4fe5-b1d0-455f672a2276","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":71,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"bd511bc4-aebc-4799-8e6f-a0dd88683054","block_type":"box","text":"represent equity ownership in the operating company.","page_number":71,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"fa429555-c7d2-4749-8a85-d62bb9a858f2","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":71,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"f0928276-0ec4-4ae7-88a7-f3f90db72a9d","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":71,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"254f3291-32a7-4a03-83e8-965af4deba46","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":71,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"bc836c0d-196e-4f21-8835-588ac798b481","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":71,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"45948e84-73a6-45dc-9071-aa608cfe18d5","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":71,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"5c0b2606-c707-43ce-9027-bb55810a9ba3","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":71,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"c7692586-4859-4145-b012-ba9f0d214254","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":71,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"5a1a1cd6-b522-4e92-96e7-e41ddab4a956","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":71,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"3a8cf005-d76c-49d2-94cd-0943574d51f2","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":71,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"598495b6-2de1-4c49-a163-13c9abf71b32","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":71,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"f1cde417-d12a-4639-be0e-f7486b5299a8","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":71,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"b8e74555-4365-4a65-94e0-7b1cc43b590c","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":71,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"eae09b8d-2275-4738-ba9e-51ce05ae34bf","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":71,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"e770cd88-8c41-4df2-b283-3528d92a842e","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":71,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"0c64dea7-6978-435b-80a7-6c69a03a23a9","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":71,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"d248a104-2f9b-4311-9ed7-f40f3cac419e","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":71,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"606efcbe-7eb9-46b5-9bcd-76cb021717af","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":71,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"28127bda-ea91-4890-a0ad-9313e6f4a88a","block_type":"box","text":"losses to a Fund.","page_number":71,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"c553aa37-12ef-49f0-82dd-8861c86008a4","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":71,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"a1ecec48-8bfe-43d0-9912-031c011ee8e0","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":71,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"d78acd64-318a-4168-8cb3-e72817aeb4f4","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":71,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"0b7b6b80-c7b9-4cac-aafc-a75ffe88bec2","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":71,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"bf46faa5-fd01-46ea-8e48-e01d40dc0c91","block_type":"box","text":"II-42","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c3d4621-737f-4dc0-82f4-e902f8876d06","block_type":"box","text":"NM0926U-5975843-71/228","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"65bf9d97-b0cc-45cc-b615-5c79ce6b43da","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":72,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"1d39f73f-8e02-4857-a2b5-ece561ea3532","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":72,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"8260810e-e82c-4fb2-a9aa-a0735450f694","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":72,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"748a6cea-0406-46df-8772-12740da9d986","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":72,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"40ee8e1c-c923-4bfe-a065-f242f4535079","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":72,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"dbcac1a8-0f67-4732-98c3-dbcd6d4de492","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":72,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"df3c97d3-6929-4103-93e3-d01831f93bd5","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":72,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"afd906f6-52f7-40a3-8985-99ab445ad5b8","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":72,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"8399dcf7-316e-4d78-b6fe-5e003ec6dd59","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":72,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"4b8badee-f766-455a-9689-98953fb94e22","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":72,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"8e9f8d56-49d2-4af8-bcef-fca98a4c0bb1","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":72,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"278332c0-6fd8-49a3-9097-20fc14bc9157","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":72,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"cc714e8d-e7c8-462c-882a-39f1927bea91","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":72,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"f72372d0-2e9e-4d1e-a5d1-2e950fdc8bee","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":72,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"6668ce90-fd13-446c-91bd-9c8b62b19b8c","block_type":"box","text":"such companies.","page_number":72,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"c1bb7490-30c5-49d2-b58c-7ddcff442cc1","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":72,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"96097f2e-32fe-470b-906d-d3e823e0af33","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":72,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"e3615a4e-e483-4517-8033-7caed1c03efa","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":72,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"24552afb-23da-44c0-b28d-feb28ca9e37a","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":72,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"c6a5bf6b-0985-4551-b2a1-d0f293ee6f4b","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":72,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"2dfa7e4c-7cf8-46c8-9196-aa0ae87676a5","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":72,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"b06282d8-0e56-4b4b-b7c6-e78c3f7e2ac2","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":72,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"8efd3cca-36a8-40d8-8808-949c10295380","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":72,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"b01bfc55-4f36-46bc-98d9-2f94e259c0d7","block_type":"box","text":"standards.","page_number":72,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"19b2f97a-6491-43de-b63e-0dede171995a","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":72,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"893308c0-2cee-466b-bf8a-d032512b3715","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":72,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"c586826c-d6da-437d-9554-b68a8274605c","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":72,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"52786f95-1c92-48e6-87b7-f4c08d401412","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":72,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"68cd63e6-7816-4dbf-883f-3ef3396054e1","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":72,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"bdb315fa-74c3-4de4-b24e-7304d4f4f285","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":72,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"ce1a7ae4-2d2d-4e5d-b228-48aab69a87b5","block_type":"box","text":"General","page_number":72,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"4be66139-34a4-46df-aa25-9b0e387fed67","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":72,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"15d438d6-49ad-44bf-8367-b843b093caac","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":72,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"c955c9b8-9899-4043-9c8b-b0378aa821e0","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":72,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"9003c713-77d4-4a93-9fb2-b01926b6f3cc","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":72,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"61e58f39-472d-441d-9ef1-76ba804039d3","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":72,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"52a58a8a-81ab-41af-9c31-e6e39d17ddb4","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":72,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"ccac2fb9-57f2-44c6-9412-eacc1cdb03ff","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":72,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"c6bfe4bc-a39f-4150-b1d2-e0772cd9fa15","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":72,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"71154f65-ad7e-4f33-8bd7-ba99968fd95a","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":72,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"e60e3363-04bc-4fcd-9830-98db72d52a8e","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":72,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"7065cfce-7f77-4bba-8a92-2d66b94323f1","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":72,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"751c67bd-cc88-4f8d-a3dd-5f1f0fde6c18","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":72,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"2b9df12d-9a2c-4aba-afc7-2abc6a0da52f","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":72,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"024829dd-7bc1-4ccb-8be0-e18ec0d1db7a","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":72,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"90f21417-ba55-400a-9382-3180b9b061c8","block_type":"box","text":"company established by SEHK.","page_number":72,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"b97ac034-3911-4442-a4cd-f96791bf9e9d","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":72,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"0c6fc7bb-b319-4837-9114-08d9190e99d4","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":72,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"00ecdd1f-1689-4259-84d8-d1278b685b9f","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":72,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"a89adf51-d78d-4ae3-bba3-d723d060bb9f","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":72,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"0c8dbb5f-a550-4dc0-b615-bb273455522a","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":72,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"98650bf6-4339-4579-a349-4d5cfc4a8e94","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":72,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"d3fc247f-0ad0-4baa-9654-eed44a093ad8","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":72,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"01d1bcd5-6569-466a-99e1-f7ea4ad62c5a","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":72,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"0d8f1af3-4861-45d7-898c-66d2d8433855","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":72,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"51446f04-23fd-447b-8911-5edbffcd26f6","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":72,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"4eae7d6e-0eba-415f-ae61-0d6192e9093d","block_type":"box","text":"II-43","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"64d50087-cb59-4afd-b925-89e03e2b9b23","block_type":"box","text":"NM0926U-5975843-72/228","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d55266e7-a63e-4f4f-870a-a07681e6224c","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":73,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"68d561bd-7d44-40f5-8367-8e3ceb0f7154","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":73,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"fca095d3-c97d-495b-8972-03d4b17a1ee2","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":73,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"86d02aa7-0971-4c8c-a9c5-2659a6f8fcaa","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":73,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"1ccc2048-dbfc-453f-9b00-c0b2c4f2233f","block_type":"box","text":"i.e.","page_number":73,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"0a848c64-ca50-49a0-af7f-2bfc1b9715be","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":73,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"3217eb92-0c14-4203-8c60-3c354731ad00","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":73,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"874cfc85-68c9-4f63-b406-34edb7971c4d","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":73,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"d012f316-fbdc-4358-ad72-873d5e258a19","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":73,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"bd2c5c21-a2ff-4d53-b4a3-98ea6e50869a","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":73,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"300dd8d2-598c-41ba-9225-96d63ae05743","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":73,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"db0090eb-405c-44ac-ae39-dad6466afafb","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":73,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"7a0679be-ab09-4a59-8081-14cd869e5df9","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":73,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"dce1d75b-63d2-4435-bb9d-d54530a4bbf0","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":73,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"2caaf290-c583-4788-bfe2-320e798017a1","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":73,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"0ccf8f46-9c9a-4b6a-b7da-082a11c15747","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":73,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"e06ec4ec-6dd3-4021-8d91-3288f3893555","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":73,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"99d94dc5-a911-4214-a034-5b1ecec8985d","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":73,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"7713d051-0ddd-44f5-8c60-4460cb2d1c10","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":73,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"1919e1d0-781c-4155-9c60-7b0652ebbb8f","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":73,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"54816905-6716-4f4b-b7ae-b418702e3747","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":73,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"1deef399-919f-4080-b553-cd69940a9354","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":73,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"9941b831-49da-43f2-8d0e-0072f364b412","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":73,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"14f15724-b939-4f95-901a-c5012a1d016d","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":73,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"cce6578e-a63a-4bbd-806d-c1d9bb5ca051","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":73,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"08434e8c-02af-4dce-a4f5-89469464de35","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":73,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"98445d5a-f821-4593-a7ee-59af5d04f752","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":73,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"0e020b50-4aac-413c-815e-cb36a199d298","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":73,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"fbe4c3b5-21c5-41cb-885b-470865551907","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":73,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"41f6d28c-0f05-460b-8c32-20219ad69516","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":73,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"3c0b08e4-4776-47e7-bacb-540911d0d8fc","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":73,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"3ac5cf81-778f-4d0a-8653-e0ec275efb7a","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":73,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"81a4fa2f-b1bf-40f6-add3-ecd284028ec3","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":73,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"66abb4b2-ca08-4b3c-baeb-1ded97e1e4d3","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":73,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"42d00cc7-a0c6-4500-9c58-6ff73df20f08","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":73,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"8229cf46-0dca-4692-8504-6b7a579871b9","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":73,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"5a57e420-4697-4028-8a2c-6c325a0021a5","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":73,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"2caf6e0b-f69d-4d1a-b3f8-afc4813c3d0d","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":73,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"f63d1562-f9c1-4805-957d-0a6e70adcacb","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":73,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"02dbe946-c1fd-4f91-9a69-4fcc941a1077","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":73,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"7f942bf9-be07-41fa-8eaa-5027fcaf44bf","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":73,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"2711c2ef-b836-4e71-9eba-72afaf3d54f0","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":73,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"b7b83045-fbb7-49c2-99ca-d4e64a549986","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":73,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"d29572f9-edb8-4b46-a6f4-cd41c3fa0e68","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":73,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"4f04d311-5528-4b28-bb2e-7f4fd727601d","block_type":"box","text":"PRC.","page_number":73,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"a7e4b544-f256-4a4e-8a2a-1a0ad40e323f","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":73,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"92866032-c87a-4f8e-a195-cf6d4f10ef15","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":73,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"cdcd84ed-4ebc-432c-87b7-151353635f87","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":73,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"db350f7b-73c9-47be-b0a5-817fb2c3bf0c","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":73,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"6ddd9607-ab88-4fd2-836e-728c7cd108c1","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":73,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"618494e1-1e54-4c1f-8f91-7205f47f246f","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":73,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"d1d87bb6-2922-48b4-ae64-fe7d89a15a88","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":73,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"c21c6d57-40bd-4c65-ba8f-cf8c51a396d1","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":73,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"a10e6049-d5c1-44ef-a40a-aab6eee7404a","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":73,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"bb2ca3e1-ff24-4906-b343-dd98290ab2c0","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":73,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"7a637834-ebc9-4b7a-a964-18957b6888a1","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":73,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"1f736df4-5a60-4eb1-906b-07122c7528f4","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":73,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"6e0c1d7a-f01f-4324-a0a5-6e377ff795e2","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":73,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"31a22a40-1439-4e03-b709-bdaf02cab13e","block_type":"box","text":"II-44","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f9c1f675-5345-4671-af8e-79d518f44346","block_type":"box","text":"NM0926U-5975843-73/228","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"235c7f91-1492-433c-bf50-0fee5259f46a","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":74,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"b8b2a816-3abf-424a-96ec-9e65a4e84a70","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":74,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"a3212a9f-314f-42ec-944e-f72db11aff19","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":74,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"ba856dd3-8b88-4640-847f-b42e57e27dc0","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":74,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"b11c5470-6c2a-4fa5-88b8-37fe4631eb5d","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":74,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"33df20a2-fa2a-4ce5-96d5-fd7b7f8bab56","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":74,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"a089c7c4-d1d3-40ee-8ab2-3d76fcb98e48","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":74,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"d2123c7a-31ac-4923-af88-e8bb294438d4","block_type":"box","text":"Suspension Risk.","page_number":74,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"ce164beb-dbf0-4561-8c55-03a7b60876b8","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":74,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"1ad99f41-57a8-4e9a-9d34-0166c9745890","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":74,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"1c1ff132-faf8-4fd8-9cf1-1139c9ce23dc","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":74,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"7fa450c1-0707-4c52-9617-f79deb861f7d","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":74,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"507709bc-ae34-4d51-b1da-28f953436333","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":74,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"45001880-4567-432c-a4ee-56a7f070f282","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":74,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"3d490bb4-bd37-46db-a8e9-4601aa4d6903","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":74,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"dc84952c-26d3-4f2d-ab05-db0cb90955aa","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":74,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"d813b2c1-0e7e-4c9a-9612-c495905e4c2b","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":74,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"f7d13ee7-6a8b-432c-913e-aa79fc1e2fe1","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":74,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"83386814-7db1-4434-a39b-23edcb021987","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":74,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"d590904d-2273-4a51-9195-5a4d7237f06b","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":74,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"3e6b79a9-4d4d-4d99-bb39-eb4e331c08e4","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":74,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"6c3e72a6-267b-43bc-ba6c-6194857d369a","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":74,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"7d2ce243-b8e0-4b4d-adc5-fc3d9be7a65f","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":74,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"576ce415-c788-44ce-8c72-5a4f775d56d0","block_type":"box","text":"A Fund may invest directly in the","page_number":74,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"956e8f71-db44-4af1-b41a-411b20b8cf5f","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":74,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"d5f78197-a309-41ca-9449-e7fb932b69ee","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":74,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"888b6b7f-d1d5-446e-8fc6-63f19e1cbf46","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":74,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"f2a60f2e-77ea-4274-842d-8725775cf632","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":74,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"c2f0c96f-acc0-41cc-9cbb-dda61c03a3e4","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":74,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"7220999b-7258-4894-b0a9-16dea170a5a8","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":74,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"7dc010c2-f1ec-4129-b50e-cf2306886560","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":74,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"c18e18dc-956e-45e1-8d7c-c9d277fdfc84","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":74,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"3b88f53b-38a0-4978-b01d-85822a591560","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":74,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"0d67da42-a6c0-4b7b-a5ff-e2d45acad915","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":74,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"0d4e75cf-b13e-4c8c-9215-52f02e73c116","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":74,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"db7fc183-0cd0-4e04-acdb-ad795eecef84","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":74,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"80a24d8d-f252-4d23-b16d-ad80c469960c","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":74,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"714d3d95-2b49-4383-9299-da362fc52b86","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":74,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"0480aaf9-532f-44f2-a866-2cc038c232b2","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":74,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"5d246b4a-f478-4837-acad-b694448fdcb2","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":74,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"143787f1-491f-481d-8051-52140292ac0a","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":74,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"9a3144b1-c716-41fc-b766-ee3707a9d2f4","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":74,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"78ebf20d-ba89-4187-abe0-6d4d412eb47a","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":74,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"7cad7e99-2b06-444b-ab51-4c2eba36fd5a","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":74,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"8b02ea7f-a81c-4ad7-bf58-4b4671e299e2","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":74,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"e9b98f9f-a34d-49bb-bf1b-dc9c4a49121f","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":74,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"7662cae0-6332-4ea3-a71c-1a23973149a2","block_type":"box","text":"i.e.","page_number":74,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"12edc6f2-786e-46b9-93b7-5fb627bf327a","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":74,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"c1528627-8d93-4591-b927-91bfda1c8642","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":74,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"e971cf6d-9059-4de5-9b73-935002ef4214","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":74,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"00f93ff7-4b2c-4532-aa9a-b1ca4231319b","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":74,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"ba7d90a3-3012-4028-ae0e-e19e5e55befd","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":74,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"059f4ccf-c670-4770-8e2b-fd7b9ed90428","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":74,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"9e997b9c-d8f4-4e53-99ce-bd457dbabcf8","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":74,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"d46027d7-d9b2-4603-bb18-a793219f5cfe","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":74,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"ba2d09ca-c40a-4e9c-97ed-761f61c51afa","block_type":"box","text":"parties.","page_number":74,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"c3eeb522-3010-4f66-b898-fb5e2e50e417","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":74,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"bff7554e-a3b3-4fa8-8d28-9c5bb6f84d36","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":74,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"d2ee1a37-5a72-45e5-bd78-45879249deff","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":74,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"757bc0ff-d2b0-46e1-822e-2405850cd397","block_type":"box","text":"II-45","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"47001ad7-43c9-479c-894e-ea8fda7ce729","block_type":"box","text":"NM0926U-5975843-74/228","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cf613e87-2c9e-4490-b4cb-88a0561c0db7","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":75,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"e9ace6d1-d36d-44d3-b43b-89baa6950ca4","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":75,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"4782a562-0685-4ead-ba37-f53218a6ca34","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":75,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"cd5668cc-c819-4722-8b09-8317015f8e18","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":75,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"a32d0c91-99c6-4ae3-9725-66b3e6d0b5a6","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":75,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"63e504fe-9e63-4740-89c9-1eb2c09fd00c","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":75,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"1a00a5b7-3345-46b2-8554-f6da8b369404","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":75,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"84aaacfe-cd6c-48fc-b8de-13ead64950af","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":75,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"54f24106-1749-45a9-b243-38e35a2da8b0","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":75,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"c8ba1d74-aa73-4bdc-8a80-7a1c06f28606","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":75,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"e9a003c0-145b-4364-8507-a2296a831072","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":75,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"dab4c174-0f61-40c1-93f2-d1b62c3f7e1a","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":75,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"553d852e-00e4-4960-87aa-ea5bec1653b0","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":75,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"7480ac70-70e9-4f78-a107-ecaf6e57ea7e","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":75,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"946e41d0-f090-4693-a697-773945715724","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":75,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"1a10e55c-f828-4dab-a318-1fd6c4d9e3a0","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":75,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"34d1e5bc-0ded-43b7-a7c7-a7d69d3c880d","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":75,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"ae7eb259-0570-4e2d-b75f-011659846c85","block_type":"box","text":"performance.","page_number":75,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"8737a15e-d34f-423b-b824-36e736b60d4b","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":75,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"87e8177d-435d-4da4-8a35-bbae3c0c65dc","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":75,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"a572314b-6533-49fe-a689-130dbeaa7e5c","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":75,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"54066ca9-6356-40e7-a1cb-ee860518eb8f","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":75,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"3c85bd40-639b-41e3-82a1-ada2ec5d18bd","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":75,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"d8e2bca1-fb26-4833-909c-e193c9df795c","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":75,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"ae3e1951-41c9-46f7-add3-e1b9e68a47e6","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":75,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"77d53b56-1f4b-492c-8419-9b5d3b2a2129","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":75,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"1b53df0a-df14-4dad-b0ff-f5877d406fc0","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":75,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"2bb9e8e5-ec6a-4700-9b0f-ff1958cce491","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":75,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"6d42c382-a219-4e59-abd9-4e01d2f2cf2b","block_type":"box","text":".","page_number":75,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"a7581fbd-0352-427c-8f39-68421d1ad514","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":75,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"a56ae30b-59ac-48f7-a043-ff2d0dd1af21","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":75,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"f7d18090-1730-4142-b93a-5bfb1aa1a4ea","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":75,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"aab3a61e-e63f-4a86-8593-02e4fce6da5e","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":75,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"192aea08-8f34-48fb-87e3-4f2a40cb033f","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":75,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"26a68f73-eef1-4ba9-b1ef-d59708645fd3","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":75,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"c5566148-b0c9-4c42-ada2-a569e1cca343","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":75,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"1b0c7dc0-2886-40b5-9d14-bf9dcdaf601f","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":75,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"262afec3-12d7-4acf-83b9-e7c57e1189a9","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":75,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"9ad8e41b-0c70-4fc2-8c74-743e52edec25","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":75,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"d45127b8-2582-46fc-82cb-e0f631a599fb","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":75,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"8fe44733-644f-46f4-b264-e443977efede","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":75,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"7cf729b7-bbc7-494e-805f-4f2f89ea4f4f","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":75,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"7eab5c72-fda9-4bca-9fa5-2bcd1b686740","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":75,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"20dbc172-703d-4c3d-8b69-96fd60492f2a","block_type":"box","text":"without notice.","page_number":75,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"e7c2ad54-a777-4fe6-ad86-9e3106bf9235","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":75,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"72d1f2b2-dad7-4e50-ae5f-f8dab7ef676d","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":75,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"2cb981fc-0e41-4da4-aff0-89beebd2f57e","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":75,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"58ac7006-e048-4f82-a651-9260de10a3e1","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":75,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"c9936da7-1adf-4ccd-8c40-fd0f9d0e3497","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":75,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"e40573fb-3110-4a13-8445-489313c39a74","block_type":"box","text":"December 31, 2027.","page_number":75,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"65e6ac23-e62e-413a-83d4-92b5f9611380","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":75,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"c2dc5848-4b4e-4728-b326-4ebc18818e3e","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":75,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"2bbb7bd2-3ad5-48bc-9775-9bb3196cc5be","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":75,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"524b6e6d-f7b8-43ad-8c85-cf60d0cd4856","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":75,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"0081a245-d8f6-4583-98be-80898c34531b","block_type":"box","text":"II-46","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3518ac2e-4373-400d-b570-9fded8631a38","block_type":"box","text":"NM0926U-5975843-75/228","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0b04ddf0-24eb-4c30-97b3-64494893b770","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":76,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"acef4a14-69b2-4c7b-8f58-49c7ee4f9029","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":76,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"4fb48792-cbcc-4a47-aed1-61ada1af2a5f","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":76,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"11398def-27a1-4dd2-8cf8-660ede6adee1","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":76,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"8eb74938-736c-4b06-ae2b-0c9920f80185","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":76,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"163df4f4-40f8-4413-96b1-e7ce483b109f","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":76,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"79a19a6b-ce2f-4d54-8941-5224a393c7f3","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":76,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"793bfc73-ee5c-4ba8-b2ec-268048307db4","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":76,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"56a98ec2-5490-43bf-b87c-93e545322c6b","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":76,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"c6a9f652-a1eb-4e50-9821-831c78a668a6","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":76,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"3b4ebbc7-5a47-4d81-bc5c-580fd3d370cd","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":76,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"47f955e6-f225-443d-82ec-3d9703aa7888","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":76,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"f6e0a336-0c6e-4cd2-82ab-6f286cdb8dda","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":76,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"ab744236-72b6-4e8f-a8cd-345f438b88ce","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":76,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"c0becd81-112e-4c01-90ee-5476bb0c9c89","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":76,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"67651413-772b-422c-bffb-10265f58e7bc","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":76,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"ef8f25d8-5ba4-4aa7-9a22-0369f1fa150b","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":76,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"251b5a95-10b1-46c4-b7a1-f6929e884118","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":76,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"518775c7-e297-4aed-ad80-f62c924ea714","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":76,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"3d7facf0-1b9a-4c85-8090-9045103589ff","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":76,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"e0a2743a-3c28-4c31-9a22-8602c2c5d1bd","block_type":"box","text":"the PRC in notifications.","page_number":76,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"41964662-24c9-4ecb-8012-65e4c5d6f798","block_type":"box","text":"Investment in Other Investment Companies.","page_number":76,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"aea37aad-5b69-43b2-b909-87df84745013","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":76,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"3127792f-f5d6-4c10-9ce4-7a29bf4f4f30","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":76,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"8da38fc5-4102-4e86-a7ba-54673b57be17","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":76,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"8fbe93a7-1cf5-49e3-b8de-866212ee64f3","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":76,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"b9129ec3-048a-4950-a003-aebddeeb4c8d","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":76,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"7f238d58-8b8d-467b-9771-189ef0c34731","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":76,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"4c43758d-2942-4a40-a1a1-548920ae48ef","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":76,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"b738a69b-84e6-4388-9505-f197f4797426","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":76,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"f185368a-74e5-42cf-86b2-865242b2c75f","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":76,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"4931a9e5-ca77-4d6b-8887-c7591ce34e10","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":76,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"07419ba4-9130-48b7-b183-56ed3649dd12","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":76,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"963d38f7-7d4f-4c8d-8416-bcbb329a488c","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":76,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"d822b63a-8215-4da9-ae3b-9df4a333651d","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":76,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"a6c9322d-db23-45fe-8047-57e6658cbd08","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":76,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"2dc3aa31-e118-49e0-b248-bd64d04841b9","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":76,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"4598a6ab-5e9b-48e8-b7b9-eb7c88ccc60b","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":76,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"b73ec6b3-8058-45e8-bd29-767d225aada9","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":76,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"af28e822-ec58-499a-a286-6885bcbd0cf6","block_type":"box","text":"subject to certain conditions.","page_number":76,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"2fddbd11-48c6-4e5b-aa50-6874998769ec","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":76,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"2f83d792-171f-4444-b339-737a719929e9","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":76,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"e754762f-31ef-45f0-8d61-32fc2ceb2bd0","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":76,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"cfe0645b-756d-4012-9863-95203a0bf0ac","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":76,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"21727c50-6e7e-454c-94dd-9dc89cf26791","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":76,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"f01ea017-8e11-4a47-8279-595d43b5edc0","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":76,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"a9c6466c-aed0-4e3d-8c1c-a4cce694e4d4","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":76,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"74ff0de3-8d23-4b50-874b-0645db934a01","block_type":"box","text":"loss.","page_number":76,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"47a642fe-f4d4-482c-bfce-02904e5b8fcd","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":76,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"823dda4d-115e-479c-8715-cd1b381b271b","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":76,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"9b03595d-05d0-46f2-aa2e-ac160e6d0cdb","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":76,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"6eb83ed8-9aea-40e9-9216-fe3e242e4466","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":76,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"b43e30ae-0bb1-4f9a-8f39-1855a5186ea8","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":76,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"93402272-0f9a-484d-8585-6f045295cf99","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":76,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"5cbb93b8-cf03-435f-9159-c35fd698032c","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":76,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"6c9300fc-ab49-4b86-94e0-32e47a393453","block_type":"box","text":"II-47","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ad9f8d77-ad05-42ed-8c97-30f306461688","block_type":"box","text":"NM0926U-5975843-76/228","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"657a079f-eb6a-4340-8f7e-e9cb194d4088","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":77,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"f559174c-488e-4a7d-95f0-6d7ed240101c","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":77,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"8a2bac13-9258-408b-8fcc-e1c25cee0867","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":77,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"348fb53b-c060-4a0e-a8d8-fd0e58454b9f","block_type":"box","text":"assets.","page_number":77,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"e266ba41-4f42-4821-b5f7-bc2dba743e14","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":77,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"1e303da7-3169-44a1-bb59-0c73eec493dc","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":77,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"22d18bf2-c390-42c7-b6b1-7e0a93587e86","block_type":"box","text":"e.g.","page_number":77,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"518bed15-f5fe-49a6-9c6a-9756d3086f7b","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":77,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"d6a1bb90-fb2b-4c66-b489-7f9f384a380b","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":77,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"e2c5e23f-de5e-43f4-bf2a-50a314fc8612","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":77,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"2d0cc1cb-1d23-4729-9091-b1bec3e2d5a6","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":77,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"733bcad3-7479-4927-9c4d-c14afa69cd44","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":77,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"58fc5f24-e118-4f89-a4b1-25d1f9b3fcbe","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":77,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"cacdf0f3-dabc-4366-bbe8-6cdac3e4ca1a","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":77,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"37e209b1-b5f0-4622-a2b4-aaec4242d814","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":77,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"fa3dda4f-2b31-406d-9da1-5df330026e32","block_type":"box","text":"countries.","page_number":77,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"ba58a294-f45d-41d5-b2dd-a07492d241c5","block_type":"box","text":"Issuer Insolvency Risk.","page_number":77,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"bd892cc6-6095-4db0-9955-fb8edb7a31e1","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":77,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"a59ae059-365f-4935-97f0-b47e7bbcf130","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":77,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"5fe0eb38-5423-4e64-9ca6-d604b60a84aa","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":77,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"82da2835-461f-4a6a-b1aa-bdb5f1f82b29","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":77,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"9cc2d2de-536a-4e01-ae3f-15b58ad25391","block_type":"box","text":"issuer uncertain.","page_number":77,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"0f87f0f5-91ff-4948-9d4a-1b268f35a5d5","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":77,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"046c094d-5073-4d41-b8c9-9e85fb745a23","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":77,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"a2dd87de-cfc3-4280-80af-8584786141e5","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":77,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"f581b883-b8c0-4d1c-8c63-ffaf0ee47cd3","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":77,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"a5685b08-c116-49b8-b8d0-b08bfbdcb730","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":77,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"66c97652-e127-4bf3-8d41-d24ee36e386a","block_type":"box","text":"eventually be satisfied.","page_number":77,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"f91e438e-78d6-4e67-84f4-2d7bf914f9f4","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":77,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"5e70f9df-9440-452a-acc5-bbfbbeec31f5","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":77,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"1f3cf900-c0bf-4e31-81f2-c2e50f7c5a3b","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":77,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"1c580100-5250-4ba2-a95a-1fce1a95dd03","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":77,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"929c37e7-ba2c-49a2-8405-2b777558840f","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":77,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"8a2c2d24-ce3c-4ea8-997d-393e657f0203","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":77,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"4b5fdb8b-0503-40fc-a2f2-d6cfd5be27eb","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":77,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"326d4e47-0e47-446c-8238-f60fd404e0a5","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":77,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"8c25ca9c-abe6-430f-98a5-e52af7745dd8","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":77,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"ff7fe0ab-a4ec-4b56-8eb8-b9fd99b9d59a","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":77,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"1f2e633d-835f-4bb9-a1ab-37367b95c1b1","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":77,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"694e12e5-e4b6-4a7c-b3fa-448bdfeebbd2","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":77,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"b052532e-abcd-4542-a635-94ddc4cc2483","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":77,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"be61d986-bd9a-4da3-aea2-a20b21b96258","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":77,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"9c75a9f5-f821-4fac-a69d-5c852bedfcec","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":77,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"f1369a09-2106-4dee-b7d4-297914fb395a","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":77,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"336f88cb-95d4-4520-80de-da12ed2e92b5","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":77,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"f0141fc3-32d6-4d42-8f17-b5ce91fbf79c","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":77,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"93d62f8c-c4c8-41b9-9ac7-4e9f654ed47d","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":77,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"30070d93-2355-4b8e-b604-0ead8008259c","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":77,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"a4b7583c-b592-4433-b04e-282d7e694394","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":77,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"2d98ca42-e517-4445-9011-f1a856e3bc57","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":77,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"cc217058-60e0-488a-bf68-b2542971894d","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":77,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"feedabe4-8257-4f83-881c-03e93ad11be9","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":77,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"1f902b48-5785-473b-a055-e8ac2a404951","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":77,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"2f1ee018-d43a-4070-b828-846dcc87e711","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":77,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"9563d54d-4cfe-4f7b-98fe-06587fde8acc","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":77,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"f757e215-3c67-4aa6-9f48-2f5339d5b67a","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":77,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"d562c902-af89-4302-88d7-3fe5749b4ebe","block_type":"box","text":"that assumed generally by an investor.","page_number":77,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"750c4a2e-6054-4c63-9168-6964576f2dc0","block_type":"box","text":"II-48","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca90c25a-43ac-4c10-8acf-d5c28059417a","block_type":"box","text":"NM0926U-5975843-77/228","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ebf5db2e-5f86-4598-ada6-c2ea56012909","block_type":"box","text":"Lease Obligations.","page_number":78,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"95325074-011a-4540-a14f-36f720a4313c","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":78,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"4abbc323-e502-4251-b85c-a00078e67170","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":78,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"b8b9e64f-473f-4166-858a-038ef607491f","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":78,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"7a6ef070-41ef-4750-8084-7e7937ea948c","block_type":"box","text":"Life Settlement Investments.","page_number":78,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"d56e510d-354a-4737-a691-183cec389483","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":78,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"866d8905-942b-485f-b937-bda622ce96d9","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":78,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"ab89b536-cb95-4ba8-beb7-391909981f9c","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":78,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"985e7f4c-5775-417f-9138-31ffc11b8bec","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":78,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"414c9569-5939-4f03-849b-ea7132fde3ce","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":78,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"0fdd472d-3fe3-4e30-bd1d-73bd0aa81dfe","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":78,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"919d7aa0-0437-46a7-a6f2-ab0b73b07ae4","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":78,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"ae9de3b2-afb6-4b6b-aab1-10e9027a3fab","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":78,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"12a8829c-43aa-426d-9c5b-c49f8c003979","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":78,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"e1753998-14c6-4180-9371-c762353436fe","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":78,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"9be83891-5b98-4ca0-87ca-fa18fd2a5da7","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":78,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"6aa88995-5088-4c65-9a30-4f3f67112ead","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":78,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"efd8cfb5-6a74-46b9-90ab-952864a3433b","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":78,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"fda5d9e6-531c-4560-bbde-147bcf075b60","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":78,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"af272be5-b701-49e6-a977-0cadab89c3f6","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":78,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"7a4fc5d2-aa1f-4678-bda5-788c57f7f8ac","block_type":"box","text":"Liquidity Risk Management.","page_number":78,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"3bc187da-1e5e-4d8d-a0d4-44c826d826e1","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":78,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"cebc0eb1-ced4-4548-84c6-a529d5bfd8ab","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":78,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"c5d9d34f-f716-41fb-854d-3725032e7659","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":78,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"2349f1ba-fc60-43a4-ba23-d6545e8c6cfa","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":78,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"53138bf0-40a3-45df-b45d-369a9acf13bc","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":78,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"887f7dcf-7348-4ed6-8332-41be313f9a3e","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":78,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"a79170c8-8c41-4f4a-a86c-558895751650","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":78,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"4219d576-6872-4450-be8e-3c2cb5474cb8","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":78,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"fa60a532-7550-47b8-9eb6-dcc8888cacf0","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":78,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"065135ac-ed53-4720-9668-9ad88d722610","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":78,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"039f474b-549d-414d-8f12-ffec0a9bd8f5","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":78,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"48c35ba2-f53b-41eb-a486-f255248df198","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":78,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"25f97af5-25ec-4dcd-b561-e645465ccea9","block_type":"box","text":"Master Limited Partnerships.","page_number":78,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"72500902-92bd-4876-8114-85eb86791cb8","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":78,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"166f467b-d4db-435b-acc2-bef516ee656a","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":78,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"49be915a-f950-4482-8d83-12befe1845ed","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":78,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"a6e983eb-2247-4dc0-857d-93b14d7020ba","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":78,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"8cf10998-5f5c-448b-b1b7-832f5a0a3412","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":78,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"1e6c93f8-fd54-4868-8e9b-9961412c99a1","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":78,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"eae89327-53e6-41b6-b8f4-71887f2ba3eb","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":78,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"ff385831-7686-480f-adce-6f7b0518d754","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":78,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"eadecdbc-8d2b-4430-b5be-e88145f6ac9b","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":78,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"14da48d7-3e8a-4403-85cb-65fe99f2aa86","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":78,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"5a8f77d5-a1bf-404f-8b67-0e5baecb40c4","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":78,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"09da8a1e-e3f0-4ff6-932a-cd05296542ad","block_type":"box","text":"in the partnership’s operations and management.","page_number":78,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"4530552d-ec1b-4ef1-9219-344606a2b08c","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":78,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"d7521a80-6632-4c8b-8d3a-b6137e225c39","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":78,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"dd5c9bb0-6048-4e70-94cf-46904987f6a9","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":78,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"c7c0e509-6d06-4bac-839a-7ae64ff04c48","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":78,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"3947e7c9-7b74-49c7-bb3d-c5cd70203726","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":78,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"c660bc9e-4638-46d8-a01a-f832bba25b46","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":78,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"ef0b8299-9dde-453c-afa0-4f9d374a6e16","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":78,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"52a5b92a-3a3f-424e-a4e5-072070edc055","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":78,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"2ac64800-cce1-4202-bd68-c19ee905c13a","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":78,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"b23f2e68-e279-46b6-bb8a-030d43c1fe5a","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":78,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"feac924e-28b2-44f2-9176-a70f05c0fafa","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":78,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"de62cdb8-13d0-4dd0-9dea-8ea5927e9fdc","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":78,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"0a3d2fc9-f616-4785-b41c-1a67ac388c64","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":78,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"ff70890e-068c-4812-a5f9-f9bfe2356a03","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":78,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"9600a2f1-990f-45fb-9f17-4855d7c1bcf4","block_type":"box","text":"II-49","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"896a7944-518a-444e-b3ff-777080ba4729","block_type":"box","text":"NM0926U-5975843-78/228","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4389fa20-6e82-44fa-a71b-24b58d77fcdc","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":79,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"70be40e7-dfc7-4079-a41e-a40151e5d917","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":79,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"201c8230-a917-4a2d-b3e1-df0293881073","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":79,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"b8ca546f-0b11-4ccc-9cb0-9091841464e6","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":79,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"a1f416fd-d0c8-4b29-9553-29e52ca0c1c6","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":79,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"2432daf4-214c-4e7a-8dee-459d6fb5ecc3","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":79,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"37935a8a-77dd-4224-9972-a1ecccbe9eff","block_type":"box","text":"Merger Transaction Risk.","page_number":79,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"e09c8552-36af-4745-9c0b-bf57c7ccace5","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":79,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"c5a136ef-8a68-46d5-9868-63bbd73de7fb","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":79,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"0f3ee884-378b-40dd-9ae2-81ea0f84d071","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":79,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"c1b13767-31ab-4143-aafc-77e165acd278","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":79,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"b5401d4d-7929-4d32-84f2-4ab776f9312a","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":79,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"65ce557d-b9f0-471e-a5b7-110fd3ce496c","block_type":"box","text":"the Fund and may lose significant value.","page_number":79,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"55f8c8bd-486f-4406-9f7b-083ba995c46a","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":79,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"2f060a74-9ef9-48fd-894b-8b3cd57d1f14","block_type":"box","text":"Certain","page_number":79,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"dc12ea1c-2a24-490d-94ea-a581b6172229","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":79,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"90d1ee15-2129-497e-a95a-eeaa5f9c0aa0","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":79,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"6b41ea5b-b384-414d-8c9d-87a7ba5d3ae0","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":79,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"87b8647c-1009-402e-9cdd-fd3a14d21d96","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":79,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"b2d1ea31-0932-495b-9f21-e8a8484cad7c","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":79,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"16c3830d-10df-4d72-bab6-c4fbdf1b0d4a","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":79,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"42c7e8be-d547-44e0-8820-5b5343ce30b9","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":79,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"99636bc4-2c95-4586-9701-1e7aa3d5d4b8","block_type":"box","text":"branches of domestic banks.","page_number":79,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"46eb4cec-b852-4fad-9f9b-b01fae08478b","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":79,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"6fec4d87-fba9-4a13-a6a8-fbfc6becc074","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":79,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"63eeec11-6418-4c50-81ac-f2e2bb2864e9","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":79,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"ed99591f-be00-4cf1-b5a3-4104d94a97b6","block_type":"box","text":"paper of a foreign issuer.","page_number":79,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"7b77f5c0-dc9e-4ae2-a588-07e093bd09ec","block_type":"box","text":"Money Market Securities.","page_number":79,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"e2f59d79-98f4-4c1c-a1c1-e1a2df026589","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":79,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"61f8916c-a6ec-450b-8404-f094bf8a444f","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":79,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"e6779b8b-1d92-41ba-989c-137870e2535a","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":79,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"64ea2a2c-4cb1-4745-ba48-fcffeb6e8b6f","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":79,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"8cdf67e2-96eb-4721-94cb-821dedd100c5","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":79,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"790893ab-c8e1-4c19-b72c-23ed5003f853","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":79,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"90da59de-d0de-4451-80f1-4f90c8959c19","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":79,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"fea66a86-496d-417a-9182-b50f634e705e","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":79,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"cf7245aa-00ef-4a2a-932b-601222a41947","block_type":"box","text":"agencies;","page_number":79,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"8a7831c6-d1c8-41d5-b32d-a95c51cf558a","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":79,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"c00e7328-e03f-4a35-8c73-40a7389e62bf","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":79,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"4c87562c-9e04-4625-ae16-e34a2e9fbda5","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":79,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"bbe9ca61-5144-4c95-aa95-06e79bb73043","block_type":"box","text":"obligations and credit card receivables);","page_number":79,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"7c80748d-be91-4503-b4ca-0e3e04f9cb74","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":79,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"fb8744d8-66e3-4f6e-bffa-47e10891d55a","block_type":"box","text":"authorities and related custodial receipts;","page_number":79,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"bc549c60-6916-4b4e-af0b-8025ffd153a6","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":79,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"32c4dccf-f21a-4d0b-8929-83f995b3dbb6","block_type":"box","text":"agencies or authorities;","page_number":79,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"3fa6dfc9-4391-4003-9ea1-3590f206742d","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":79,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"3d0cb8f4-5e14-4544-8405-11ff80d29b6f","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":79,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"ed3b1fdb-a83a-4124-8efe-de9285185350","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":79,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"3b413521-780d-4457-b21f-99c81a10499f","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":79,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"bfe5e975-29a7-431e-9ecd-22e6fb2f644d","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":79,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"29d87b67-62c7-4767-b792-29670095fa4d","block_type":"box","text":"States;","page_number":79,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"b78482cc-c83d-4e5a-b98f-5eec6e37f176","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":79,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"3c392966-3bf6-482a-aec0-0804665d16f3","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":79,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"7d145f45-04ea-4a39-8dab-c4abaebea3be","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":79,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"476aebd3-78df-438b-ba93-fd9c4d853d9a","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":79,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"2e6a3bc8-a4d4-479c-b416-afe224dc9111","block_type":"box","text":"II-50","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eec97a23-5b6d-4387-89c3-1255e66a58aa","block_type":"box","text":"NM0926U-5975843-79/228","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"95558521-8f79-473f-abe6-e9b169e65b87","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":80,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"df93890d-4e06-4d72-be65-83787dffbf22","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":80,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"41ed19e0-49f4-4dd3-9f0d-0823a8b6b8f6","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":80,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"6f8641c0-da26-48a6-9512-2b03eb69a536","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":80,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"ba1a12d6-7b9f-4929-87b5-57705874c070","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":80,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"7de15a17-ccbe-4ae6-a32b-ab48fb83c80e","block_type":"box","text":"States.","page_number":80,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"d5cf25ff-9af9-4880-bf56-41c623eec065","block_type":"box","text":"Mortgage-Related Securities.","page_number":80,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"d3ed9957-9bd6-45ec-b028-d69308c76f51","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":80,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"48673acc-4fff-4416-b041-02e6e4ed10bd","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":80,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"e013425a-4475-4481-90cc-1d56443c4ebc","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":80,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"68a859f7-c6ed-4a3f-8204-818bfa80c5b5","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":80,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"396594ad-f641-4b5d-9a5f-afbd765a9e56","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":80,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"03ebc88b-a426-4964-97c3-ed6795b9b9d3","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":80,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"8e184dd8-545e-40c9-8587-a48af375ccf8","block_type":"box","text":"maturity or specified call dates.","page_number":80,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"e560dc17-1eab-4cbb-b0bb-e79bbcb99463","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":80,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"19f4cdd5-5287-458c-b4ae-c0565554a47d","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":80,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"d23b2c8b-b2cc-483d-a1cc-f4bf39e77e5f","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":80,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"d7e8f90e-ec63-4a56-b9f4-61d89cdda4fc","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":80,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"1b82b7b3-7ceb-4494-964e-52f80412c37c","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":80,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"fc4a4d8b-8c03-4ebb-9775-8cf1f4e45dcf","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":80,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"1b28c250-c93f-4617-8bb9-887d738e77b4","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":80,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"9d8ad876-4267-4dec-918c-025ca507d649","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":80,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"a78cf72c-0f15-4df0-9c22-0aaa49fe155e","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":80,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"35c343aa-0896-4012-86bb-76b7d813fc43","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":80,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"c5228291-816a-47c3-a766-6f3ce4b3e3aa","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":80,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"68240842-d419-4bec-b1ae-7c866bc371ac","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":80,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"f6b3b097-790c-480b-ab4c-9c2c1bb27572","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":80,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"be92853e-04cf-457e-b0d7-5c1646bf9dbb","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":80,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"0460a210-9e69-4994-9e89-2cbeec7aab27","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":80,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"4ff64741-1c56-4765-88a9-21be5a7fcc32","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":80,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"2bfc36f1-d6a5-4c34-a7ea-fa7ceaf19676","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":80,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"6f13ecf9-bd39-4a8f-af9f-5e1fd6df08c1","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":80,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"02df8ce9-2aa1-40f0-8729-58b3ba908500","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":80,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"f1e18228-9824-4ad7-b0c3-c601883764da","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":80,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"0bab64e3-7206-4252-936c-9be0a51bec93","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":80,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"9190b8b1-2519-4abd-8bea-8af666072d3b","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":80,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"7fff3c04-98c2-4ba0-8d2c-203664975da6","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":80,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"57244e54-2f3a-4f20-a40d-b553ebab2ec7","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":80,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"d4d5c404-58b2-414b-bf02-f12974d9d3ad","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":80,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"aba4dbc3-e265-42ff-a6e6-96985a5c881d","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":80,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"cb0fe76e-a233-4fe4-8f73-d7fc97d6479e","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":80,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"1770ee30-ab00-44ab-889a-a3cde386b80b","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":80,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"513b11ca-2608-4b2e-a59b-a439af21bc35","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":80,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"1d54ae9a-c2da-4dc3-bef5-868800c928fa","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":80,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"75f16627-3238-4377-a087-daf654833197","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":80,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"405ff9f6-46a4-458d-8927-9889539babd8","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":80,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"59a1f4cb-30aa-4844-a681-761374dc6890","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":80,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"a296e8c0-a8de-4740-85e2-b30705d0a3ed","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":80,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"d1962a06-503f-4a96-89c2-c3aa88a968a6","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":80,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"e0c61e99-1519-4423-8243-e39e733dbcdf","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":80,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"9deb840d-0e23-4adc-8ffb-9ca27582b6a0","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":80,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"9ad15fa7-d045-4702-964e-d8015393f562","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":80,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"9dc973f6-e4fc-4cfe-8c89-d886bb2862fa","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":80,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"949bdff5-cd8e-47a4-b27b-437e2cab9422","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":80,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"a59207b8-524e-4249-89ad-b6bcfa6fb23f","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":80,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"784f5ced-b643-4307-8afa-aab3a20b6bed","block_type":"box","text":"II-51","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"db29b14b-7fe3-4a3a-909f-dc94778e0eb0","block_type":"box","text":"NM0926U-5975843-80/228","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d87ee121-d847-468e-98ec-4e78ca5e3ed6","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":81,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"04af9046-7f87-4ebc-9b11-5f52aa96e3a3","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":81,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"2ee25c9d-c9c2-4363-9995-f7cbd99f6a4d","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":81,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"42b9661a-4a2f-4706-b96c-adb7948e10d0","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":81,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"e43170c8-0c65-463a-a832-3c6ef6f041b1","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":81,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"13fb9047-ad7a-402e-a034-a7cbc2c61eb6","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":81,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"2527cdd4-5f73-4955-8b93-ec7cd3814169","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":81,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"2a6996bc-9e6a-4330-9e5c-097f6f1f6e5e","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":81,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"253ce643-6d58-4a3a-be40-cf26b40aa14b","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":81,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"5267b6b4-fcb5-4924-8d61-a109c360e5d7","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":81,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"8282fb4d-d0ef-4b74-a0c2-cd7854225c5e","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":81,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"244cd63c-cee5-45d7-877b-8f343cd47d85","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":81,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"9f18e950-1f0a-499a-bef4-3674693bc5ee","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":81,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"9cb1394b-1afa-4cf1-b720-774e316d815b","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":81,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"be620345-7dd1-467a-b964-dbba9950e495","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":81,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"6a03e1f9-00c3-4cc7-8c7e-183143d6ac0a","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":81,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"ad78e99f-6862-40dd-a79b-c16c37517ee3","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":81,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"8a6d23c3-828b-4fe8-983d-188ce513ca90","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":81,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"aeaf2ce8-cfb5-46ee-b43a-a71090255bb1","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":81,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"227d12b9-c214-4e61-936c-59fd27b3ce09","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":81,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"0b79e63c-5ed4-4ea3-b410-9b6b759f9f5a","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":81,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"633b13e6-1cf6-4b69-a1b8-915e7963e6df","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":81,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"02c59c54-0da3-4e5d-9f8e-c8e175231ca1","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":81,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"9c650b2b-b078-4fbb-894f-b8075e49ff2a","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":81,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"0ddf4923-cd86-4b63-8449-024358d9d267","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":81,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"dc694dc3-3625-4416-af17-757a1375d5c0","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":81,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"e70474b3-6408-4f1e-a59d-8fa5b20ce44a","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":81,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"19b7f33b-99a0-40c3-97f8-acc4bd906a81","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":81,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"34c13626-1066-447e-9262-a3a6c93e9633","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":81,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"8cd8a884-58df-44a9-8972-9c05b632ba9b","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":81,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"f254d963-8e17-4224-9e5f-0da62f4f3c15","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":81,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"7203932d-7ef9-48b6-bb84-46a231d8adca","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":81,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"10fd0ede-f916-441b-9df2-41a488603d32","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":81,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"9dd81cdd-3341-4ba8-a1a0-459119be2403","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":81,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"10c073bf-03c5-44fa-b3b3-88b805827b4a","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":81,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"e4359add-cbc6-4580-9598-bf8115714b27","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":81,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"8c3a458b-ad83-4981-9c48-bd8e517b6c81","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":81,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"7b0536d6-ef37-4712-ade7-f2b66aa82b38","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":81,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"29f48041-bd85-4ebe-b457-775650b7589d","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":81,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"1430e05c-d467-4fcb-96fd-cd335da9ea6b","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":81,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"e5e1d4b4-46aa-498b-951e-f4ddcd810abd","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":81,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"7fe16f46-696e-406c-93e7-9f3b65f24c74","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":81,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"2907c1a8-fc9f-4b1e-9ffd-e5da141fbafa","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":81,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"4789b254-d4ed-4464-ad24-4e9f9ae199b9","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":81,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"445ce16b-aab9-4e22-9be5-dbd11d3908cc","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":81,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"fe700226-7e52-4641-a021-c1b7f2c5873f","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":81,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"ed393917-079b-4f92-8da0-730788e658fb","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":81,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"168db425-0e33-4295-a0d4-6e3f86f5186c","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":81,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"e4229dfd-ab32-4a29-aaea-b0273bb1a50d","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":81,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"a08750d5-1d7e-40f6-a71f-f5617b160444","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":81,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"5358b311-3d6c-451d-8ebc-eb90d1664733","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":81,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"98aead9f-96f8-40d4-ba36-b15c1cf59ca4","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":81,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"203213ef-c144-4c76-9086-efc4e1727b2a","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":81,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"4863194a-5bcf-45c9-8f69-bb801b10e667","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":81,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"af980426-5b98-4c8d-b4ac-5af64a89ebd6","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":81,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"7f48a72e-fe4a-41fd-8a68-8a83f5e1aad9","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":81,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"8c0c6ae9-db95-4cbf-8b20-a638170bf879","block_type":"box","text":"II-52","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"56eec7ec-0ba8-4e7b-87b0-2caf90c04e54","block_type":"box","text":"NM0926U-5975843-81/228","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"029162af-37f0-4cdf-a0bf-4dedfeebcc37","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":82,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"4c708b82-cc12-4d54-9397-00310bf451fb","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":82,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"42a1e781-7583-4f7f-a539-88e9c9da7605","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":82,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"b3d6e917-6f69-429f-a2bc-e51aba77f398","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":82,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"64529387-1462-4111-8fa2-84eda590453f","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":82,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"f20ee095-0f59-41f9-9676-601c9ebd0ec9","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":82,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"26602a7a-4f39-4159-8c5b-16d1ecf2b418","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":82,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"f79830bb-bfcd-4bd7-842d-7b4911aaa11d","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":82,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"448491f2-2c83-40f2-9fa8-cdb110399a9f","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":82,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"a7b34f4e-72d6-41ff-9006-802c004abc3d","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":82,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"a03bcf2b-1f66-42c5-ac94-f2ffe9e4b21d","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":82,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"74e66404-07f7-47b6-941b-52bb03cb6103","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":82,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"f3a763e1-aa57-4bb8-981d-3ba3c46417d6","block_type":"box","text":"of principal because of the sequential payments.","page_number":82,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"1d7c27ab-9dfd-4f57-a464-2adcf14d1450","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":82,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"c4330c6c-f74f-4daa-98ae-a4eb17beea51","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":82,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"e32dcd60-dc68-4916-928e-c976ed443580","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":82,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"68797184-d94a-4a25-b6cc-c0fbcfe468b2","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":82,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"d1ea57c6-d9bf-43ee-b8ca-f41419f57731","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":82,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"2fe10f3f-be75-428e-a130-1178737f8107","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":82,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"64d0b8cb-4663-4572-ba06-fd065319fe96","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":82,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"9773e5c1-0b0f-4057-bc07-79f0bbe181f7","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":82,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"f1e2fb55-7423-46ac-853c-348cca4f0865","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":82,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"83e0ba74-e6bd-4227-b17a-779d55442d2e","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":82,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"aff8f7a7-ea62-4e28-99ef-e35ae90937d9","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":82,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"1cd3c1f8-15b6-4b15-ba57-0bc0aad19b0a","block_type":"box","text":"securities of any single such entity.","page_number":82,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"70da149c-9c7b-45d8-b585-e9c460abce35","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":82,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"c1cb0478-50c1-4947-922e-8fc0ba18a66f","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":82,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"ade7d41f-2a57-4608-b385-a188f3ea3cee","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":82,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"458b0b34-7faf-4aa8-8ff0-44c9a31cc990","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":82,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"2b115a17-94f3-4d65-b570-f4364b73e918","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":82,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"39c5f459-fb31-4d8d-92bb-20a8c2e6add1","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":82,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"9eb87d5a-5b55-4146-9aef-e36328847652","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":82,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"965fce4b-3107-44b9-8127-137250c8ffc4","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":82,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"c7fb62be-eb69-4ae9-9732-015c0c5147cc","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":82,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"52df93f9-21e3-4918-8415-07df33e4a15a","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":82,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"9de20f42-334b-4d2b-a942-7e56a18e1928","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":82,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"f61aef26-ae4a-4743-b4ee-4ab6354f3fbf","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":82,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"78baa4be-5bf6-4133-89f3-ad3ae2abb030","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":82,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"bd2dd45d-1fb6-4dab-ac30-026cee51f4a2","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":82,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"be39e674-958b-487d-9a58-5a1986adc083","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":82,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"7721a67b-c316-4273-bd10-3cd100332829","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":82,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"8f263b12-ece8-446f-b26f-d959554cbbb3","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":82,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"2c79c4d3-13e5-45ae-bb95-57fb08f8fc14","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":82,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"5552bd77-1704-4ac5-b5ca-9659bd632ad0","block_type":"box","text":"classes.","page_number":82,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"a73d6b6a-41a1-4061-ba47-3c87c635a21f","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":82,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"06d9128c-b1a1-45d2-be4d-4786bf2a8951","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":82,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"bbc0f28f-52eb-4fa7-841c-cff09876b848","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":82,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"591cba05-eece-4f18-aa5b-d11cb13f4e12","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":82,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"1e591921-570a-4eec-903a-150d2972a2b0","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":82,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"a81b9d38-877f-4ea7-98b4-c4783527e773","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":82,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"dc19bcec-54da-4f7b-9496-3829f9fb5f46","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":82,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"c3b9987e-3722-424f-820f-50c4ab2bf7b3","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":82,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"854799d2-837a-42fa-a61b-018e8513db12","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":82,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"c06e90b4-30a8-4d18-b68d-b22a4153abdc","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":82,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"88e29c0a-33db-403c-bc96-d62d1f3403c0","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":82,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"0e6b326c-e90a-4c11-a663-b36299d504c6","block_type":"box","text":"to a designated benchmark index.","page_number":82,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"29b44f62-7361-41e7-ba12-8865a92029c1","block_type":"box","text":"II-53","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1ba64bc3-3210-40fe-be00-eb719614bb83","block_type":"box","text":"NM0926U-5975843-82/228","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8a9ece47-bd2f-4025-9b09-a402df996eb8","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":83,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"85816c23-4e0c-4355-8fea-44f2452c789f","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":83,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"8767d7c0-0503-4cf7-8621-2081b6c247b4","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":83,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"b9ee4913-2d85-4540-8d26-bb52f75bcbec","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":83,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"4106b7b2-b0fc-401a-abfb-ace98eef7a6a","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":83,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"84597333-c56e-43ec-8e7a-242553fa1095","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":83,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"ce93b721-2688-42c0-a57f-b91b77d2dad9","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":83,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"3eb6f5b7-9dff-4f48-b757-cd071f2a6624","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":83,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"aee482b2-5537-4c83-9d9d-6cf69cac5915","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":83,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"994e82e1-e53c-4501-9d30-99e5cf33f06b","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":83,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"a30d39dd-9c56-4e55-819f-cc0ae0a03fa4","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":83,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"99eab1a4-27c6-4d39-ba37-d9581ac0a3d7","block_type":"box","text":"CMO Residuals.","page_number":83,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"0005a451-053c-4579-940a-6fcda8d2036e","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":83,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"d379a45b-c470-4e3f-985c-1de5f9872ec4","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":83,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"666a0fae-e813-4f29-af58-118dfef8dc19","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":83,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"30585e37-0784-4f8a-839d-2febf53f15f0","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":83,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"52ff91c0-769d-419d-8f71-c08b33e25363","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":83,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"b4e5593f-585f-4636-8574-b9fef03f7737","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":83,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"d27c0380-3628-4777-b31f-938741adabbc","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":83,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"41d500d6-a852-443e-ab21-7a6aaa40e380","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":83,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"e2170301-dadc-4686-b367-13c1525926fc","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":83,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"3f9b41b0-b6aa-48a3-a1f2-eee7a8193206","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":83,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"202398df-6f3a-435f-87d9-479ac0eadde8","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":83,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"f4a10f9e-fed3-486d-97a1-1916b9b7338b","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":83,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"3fcf4067-1ee7-4092-9175-67cbdb7ab2dc","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":83,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"77c69058-5406-40ea-8f4e-8348b0d5bcf8","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":83,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"3a6d9d98-85af-4518-a839-dfecc194473e","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":83,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"53f599fa-4e64-4db9-99ae-b5f419c33016","block_type":"box","text":"a CMO residual.","page_number":83,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"72fab82c-596c-4302-b0d8-a9db722a3981","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":83,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"0b9454b8-43fb-4765-9dc8-0b8185c2d07e","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":83,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"c0c7e7d1-1d59-4690-8c77-bdc92e7cfb7e","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":83,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"c8e5a851-ad6a-41e6-8960-f9d43ecfa778","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":83,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"8bbc27e2-a835-42c7-8d5b-0a9cdfea977f","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":83,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"f5f7be88-aefa-475c-a4f5-0cae6ca76432","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":83,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"89d9d85e-a73b-474c-bf0e-63f0c64c83d1","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":83,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"8c23574c-e1c3-4330-b6b2-829396014f74","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":83,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"b40578ff-9749-4747-a6be-222a7ddd6c86","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":83,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"9224d350-03ec-44fd-9889-3bc44b293164","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":83,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"83fe6cbb-5b70-4cb5-86ec-79f9124c5a2b","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":83,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"17ae5d13-9948-45ab-9c9f-c411d3c8256d","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":83,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"10a8a9e5-06b2-470d-afaf-751263b7aa0e","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":83,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"568497c9-fdb2-44d7-9ec0-4e0e4959bfb8","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":83,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"f4fa1671-4c66-41d4-8742-fb951c0e6493","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":83,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"9c6ab459-43d7-4b9e-b964-78c25632b616","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":83,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"aaddc938-2a39-4044-b17c-d6cf6d76c3de","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":83,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"b9cf4c8e-7401-4ad3-a620-d09455a32c35","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":83,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"eef57790-9304-48ca-80dd-7a60778ba2c4","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":83,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"7d74339a-9f2e-4d66-b637-1afb46db1f12","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":83,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"7c454ad1-3c12-4544-a1e4-6c7e22026c48","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":83,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"56baed8f-cea8-4b7b-9af3-f7ec523e5e3a","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":83,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"e30df150-7756-4fc3-93a5-eccd0645113c","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":83,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"10d3b692-53b0-42e9-9468-9a8ae9ae0528","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":83,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"1d662209-85a5-4ef8-88f6-991187e476cc","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":83,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"a3e55833-3153-42d9-919c-670473dc1863","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":83,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"71fef7ba-67c6-4f9c-b173-e00b3aaff762","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":83,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"94cd185a-4219-4865-9d58-ae2ce50b8a12","block_type":"box","text":"Tiered Index Bonds.","page_number":83,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"6d259113-6175-499f-885f-08ab9cfc4c7f","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":83,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"9db33052-bfd0-4f46-9520-dd440861a97b","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":83,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"2d08a90a-785e-4a8b-9aca-d9d03158c892","block_type":"box","text":"II-54","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf804cad-33c4-4ed0-8b45-3de8ffaaa433","block_type":"box","text":"NM0926U-5975843-83/228","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"184ebaa7-c624-4512-960f-152f37fa2645","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":84,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"4657d094-1ac8-43b1-94d1-b7505f3c75e2","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":84,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"e018b722-0fea-4c4d-b011-c080e1ca896d","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":84,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"c53a0567-9fd2-4b6c-a4e4-57ce9ad3ffd3","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":84,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"e593e285-f9b3-45a9-8bd1-d703f9c551c0","block_type":"box","text":"that of a fixed-rate bond.","page_number":84,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"6ad0a8db-3f33-48d3-a403-a54ef375f4af","block_type":"box","text":"TBA Commitments.","page_number":84,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"62936b78-8492-4d57-9808-8b357abc8241","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":84,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"5ace4ca2-2efd-4f89-bb3c-ee97e99bc36b","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":84,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"9be9166a-c230-468b-a3ef-4d2d897bec55","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":84,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"3676c97c-a888-4f90-a767-45368573ed07","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":84,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"7aacce2b-657a-4fe2-8e53-ec3ac997ad34","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":84,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"01f01b49-541e-40c8-ad9d-cc2f85a54a2d","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":84,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"d577dbb3-2f26-47d6-a762-d5153bc26a19","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":84,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"3dad36b6-4942-40ac-8cbc-e5d1d00370ac","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":84,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"a2d79ed6-aca5-454b-8b71-ddbe883cfba5","block_type":"box","text":"below.","page_number":84,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"3c340111-c15d-4ef1-ad9e-6dd0db10a9f7","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":84,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"1d2d451b-7b3d-4591-9c27-d1b9af702b0b","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":84,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"0dd446dd-c215-43b9-a38b-a1d91be10b76","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":84,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"0ec682e3-4709-402d-b272-de9c3eea4cc6","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":84,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"b4f95e4b-a547-4227-af8c-d4d7f5655fec","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":84,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"44b1cbfa-d072-4ab0-b218-e973c62e7df0","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":84,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"6094c788-f826-4be9-9c44-22c5116299b0","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":84,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"18f24ab8-ddb3-4486-9da0-03ab9e83decc","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":84,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"1eb0860e-6b90-4938-90a9-dd30a8fc08de","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":84,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"125c4860-efbf-4d92-8a2b-60a20712f092","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":84,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"8d41bd47-c1dd-4e21-a84f-231db2e6aa2c","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":84,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"41dd0bbf-bb0e-4c10-8a13-acc33e43447c","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":84,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"7b512ebf-2a8f-4d68-a95c-585968812e95","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":84,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"0903f482-8fb3-4f9a-80d6-e67b4f551c44","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":84,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"f6c9b6db-1936-4e58-85cd-7e241090bf0f","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":84,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"4ca98250-63b3-4c88-b895-31ecbab1b8f0","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":84,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"1b2be6fb-2a5d-4ca6-b95f-09106fbe0a01","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":84,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"ad97a87e-4bb2-43bc-a0ee-b0c93997a538","block_type":"box","text":"securities in the forward transaction.","page_number":84,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"98a6fdae-1b1a-48e0-a0d5-eb2deafaad7e","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":84,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"3e2d6e5c-ba8e-4408-ad30-58dec366e71a","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":84,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"b3a933eb-c501-4c90-bbb4-d06db2e0001f","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":84,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"836bd728-f0cc-499f-a508-acf23fe5a5ce","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":84,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"97779c3a-7cca-4860-a20e-22f2a658d811","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":84,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"a3183a1b-343c-4fcb-8777-4495dd47a91e","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":84,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"8c327b92-9821-401d-a37d-1e8087185bcc","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":84,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"9a69a791-0698-4a91-b652-c9066d689a89","block_type":"box","text":"securities (","page_number":84,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"3de7fef6-ea13-4406-b316-23ad58f25f4d","block_type":"box","text":"e.g.","page_number":84,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"6ffc3e96-1d6e-4ed7-81d6-592ba336361f","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":84,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"59a1e3f3-d039-4ba5-ad15-cc9b1e90348e","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":84,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"8acd3955-2d74-4242-b432-f5cc42fc7fa5","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":84,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"309ba98b-81b8-4566-9ba1-afedcef60de6","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":84,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"c40139db-7817-448b-9b77-fe564ac69257","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":84,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"799de09c-6e7b-4c26-bd1b-b223704b20d4","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":84,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"d855440e-2cbc-4fdc-a3b1-6171b61d652b","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":84,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"45f3d025-fb0b-4691-b954-b02b1bbf052e","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":84,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"4d9585bb-16c1-449b-8b3e-065cac96ec9a","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":84,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"fcc643ee-8d04-4cf9-84ad-89a88de46ef4","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":84,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"6436d2d3-338d-4563-8b4b-2b8cae1acce7","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":84,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"5d86ff93-4a50-4a66-8082-beeaabcaafcc","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":84,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"dc111f7d-a086-48ba-a981-d7f1108d6897","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":84,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"ff4ae409-9c98-4e16-8cb4-321b16e05f6a","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":84,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"707fb8ef-21bf-493a-87da-5e55e54976b2","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":84,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"f530c5c3-7bb2-4892-84c8-2f535fdd9ac1","block_type":"box","text":"Municipal Investments.","page_number":84,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"a7a2e6ae-8659-4530-90ac-b85b757e40a3","block_type":"box","text":"II-55","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eb5aeb1d-438d-45b2-8fd3-92f34972162d","block_type":"box","text":"NM0926U-5975843-84/228","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ff5e8564-242f-47a8-9816-eff7bd2a0e6e","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":85,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"45e99303-9cae-42a8-a1ab-c55dda240f4b","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":85,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"31eb6298-3b3c-468b-bc52-3c4217930b13","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":85,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"6357ecba-f1ab-45c2-aef5-89ef171d7cee","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":85,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"00e094c3-eaa9-48da-87b8-f14ea4658288","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":85,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"0ed60698-85d1-4d22-aaa4-a09a8bd4ffc3","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":85,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"c2cd9312-1a6d-4b93-80d8-440d7b70caa5","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":85,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"1eea172b-7880-419f-a6f2-ac9804b449ef","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":85,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"76f7ca94-51cd-4967-8f31-e2a7d2c9ef05","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":85,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"2511af48-592f-41cd-9b13-d5cb4342053b","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":85,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"5ff031d8-783c-4855-8cf4-7b5bee981357","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":85,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"77600684-ca57-43cb-bb9d-b9c0dc2d8952","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":85,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"01cf74f7-77ec-4b63-a672-9d450188f5c7","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":85,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"210ac2c8-1c3c-4d2e-b17f-90af9ec8137b","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":85,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"0934c688-d113-4e65-b032-a544887b8947","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":85,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"db3138ac-94a7-4593-8879-267599ecd148","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":85,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"499d122e-bf8c-4fb7-90a4-09fb903fc7fc","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":85,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"2a1f2e18-de2b-4381-9219-732bb8dc3806","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":85,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"c89220c1-90b0-47a2-beed-cd93673a8712","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":85,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"345805fe-7fb4-4eb2-bfd4-8ba13278dddc","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":85,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"82bd3abd-6f38-4d4b-9656-396ba4e19a46","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":85,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"d2f1f430-ffcf-4379-8abc-c99d2d7fe7ba","block_type":"box","text":"The risks and special considerations","page_number":85,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"5bf94d46-e5fe-4283-9e9d-e7f2ea2dc060","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":85,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"dba67f79-1809-4129-b182-8a0b52939cbe","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":85,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"07053ebc-ebf1-4ef7-ac79-939492ed555f","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":85,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"ba29b3f1-d6b0-48a9-b369-7897661d9e70","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":85,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"58ed99da-ddf8-47c6-9d7e-f503ca6aea62","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":85,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"18c9e73c-ea02-403e-b33e-ddc7aacd623e","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":85,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"8e368517-a1f4-4ea8-80ab-82dfca9b23ed","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":85,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"16c3da26-bf00-4a28-b429-2ab82a2722c8","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":85,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"d0698621-6029-4edf-a6f8-1d1cb90d65fa","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":85,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"69e208f0-106e-41ff-a944-deb31af84fe3","block_type":"box","text":"II-56","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"97f14486-399b-4557-910c-37732e00792c","block_type":"box","text":"NM0926U-5975843-85/228","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6817751d-3115-4998-be1b-98dbf29071a4","block_type":"box","text":"Description of Municipal Bonds.","page_number":86,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"5d7b201e-9ce8-4292-9da9-5d3bbd632efe","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":86,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"6a7aca82-3810-4d72-bd6e-1cdec659d7d5","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":86,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"44e7fc07-4bf0-448d-86e5-49090670edeb","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":86,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"eb06980c-6e73-4104-8ae9-982a88c780ed","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":86,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"bb34edf5-4435-47b7-92ea-00fb594c3b35","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":86,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"9a4f912a-2fbf-4c86-b0b3-94171fd28a4c","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":86,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"df460e9e-9df7-4d06-ac0c-6e460d38563b","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":86,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"a26dafe8-92ff-4dd4-905f-3f613464c04f","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":86,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"27ee8a2b-190a-4893-9a27-9b8b0f8549b2","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":86,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"ad0b4171-b17b-489f-bf17-4e9f2d8a5f96","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":86,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"7383c292-0c8f-4edc-87c5-ec468ad6a2c0","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":86,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"36d3222b-95dd-4631-b3d2-986126e4e6fb","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":86,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"07ea7403-4520-4518-b6d5-81f02c557e09","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":86,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"fa5c0076-d727-476b-b91c-34624e921a24","block_type":"box","text":"General Obligation Bonds.","page_number":86,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"a3173cc5-6537-4bfc-aabb-a79a3e1f36b6","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":86,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"48298808-ebc1-4556-92b4-b28b29a33760","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":86,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"eed2e111-d988-43a1-8e01-e40d1ab59d53","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":86,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"968975d6-95c6-4f1a-9af9-ae6494df2cea","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":86,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"008ad92e-583a-470b-94e5-ea77f7c10bc7","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":86,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"20823e3b-5eb1-423d-96d6-37ef6e314f96","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":86,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"bb7e98fc-098a-4f4f-acea-4595d29abfa6","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":86,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"ba16f744-8ad7-438b-91a4-1875639f8903","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":86,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"ab7a5ea5-ffe1-4eeb-8c13-33fd2cf65d98","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":86,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"6da2c4be-4ff0-4576-b44c-edb6f2a7fd61","block_type":"box","text":"Revenue Bonds.","page_number":86,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"bc833348-0d03-4e06-a356-52e5916093cd","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":86,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"b3c44e28-32ac-46f0-aeed-21c0413219f2","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":86,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"78d3a970-215a-44ab-a15b-1ec897ebf127","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":86,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"89a3bd81-5ccf-404f-91cc-846518efe5fc","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":86,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"4cc21174-61f0-4ae3-8a32-cd040a79a149","block_type":"box","text":"viability of such facility or such revenue source.","page_number":86,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"90b130da-7124-434c-af0b-010d99158741","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":86,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"a558f901-c514-4401-ae06-a40e083abb9e","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":86,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"d4e1b803-33c0-4b29-946b-698c4960fd9b","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":86,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"a144be2e-8584-4482-bcc2-f5b1c5e71e98","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":86,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"77782251-c947-47b6-820f-ea7ed92985c3","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":86,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"14189ba9-95b0-41ab-a419-7b0e53289990","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":86,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"499b684a-65c2-40ca-bd85-969615e06d48","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":86,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"682f9f41-6b0e-4b05-94a7-849c2aac61d0","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":86,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"b227cd6f-8323-42d3-a921-d499136f5dff","block_type":"box","text":"PABs.","page_number":86,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"c383eb56-2e55-4941-963c-41ac7fdb38c6","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":86,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"cd37cc00-9f61-4270-a052-f33cd65a71be","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":86,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"dc161427-e19a-43f4-8b96-d73216862b9f","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":86,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"0419b985-d1cc-4eef-8bb3-5d153c021c52","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":86,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"f30dcc5a-a458-42cf-b2e6-cd3a48d4d112","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":86,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"906ddc39-f4f2-4bfd-8e8c-d778f266741e","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":86,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"175971e8-334b-43c6-b784-eff6f1987935","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":86,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"0ff1804a-0ef2-4178-b49c-1a79f990ee65","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":86,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"d857772f-0751-49fc-92d2-be1e7b31b2a3","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":86,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"929b8201-c700-4f5d-b035-8d0b6fbe927a","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":86,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"4f8c3f06-933b-495f-8676-c36a7dc8ded1","block_type":"box","text":"the particular facility being financed.","page_number":86,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"a2dae380-0221-42bf-80b0-26bb30efd56f","block_type":"box","text":"Moral Obligation Bonds.","page_number":86,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"ff744eb2-4c9b-4acd-8e10-88595fc4412b","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":86,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"53ae2c18-b636-4168-9591-be71661c5aec","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":86,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"9f8306e2-9c75-49f3-b04e-d728e108be43","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":86,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"b3ffb51e-3d75-46d5-85fd-1de7d870a6a7","block_type":"box","text":"that issued the bonds.","page_number":86,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"d8928624-17ef-4967-a3d4-7898fb10ae20","block_type":"box","text":"Municipal Notes.","page_number":86,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"aba39fb8-29f7-4c18-8378-06c280a71302","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":86,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"4f3131fa-4882-449e-8026-1d21ac677a68","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":86,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"00a1e329-1252-4ffc-82ee-c3aabfdedcd4","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":86,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"d7706c9b-1e50-476a-a12f-34f1917ad7ae","block_type":"box","text":"II-57","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"825ba6b5-a543-449b-9e56-31bb55b71050","block_type":"box","text":"NM0926U-5975843-86/228","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ce05b2b2-2b77-4dee-ba72-495eb02bf9f8","block_type":"box","text":"Municipal Commercial Paper.","page_number":87,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"3c00a2b0-0d8b-4332-8b54-99bbaaaaae08","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":87,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"e54294c1-64be-450d-ac41-ad7688fca27b","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":87,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"7db4e274-3642-4a67-82df-9e8f5a302d37","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":87,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"b22ad45c-7043-4d5f-973b-1f9eac8ccbc0","block_type":"box","text":"Municipal Lease Obligations.","page_number":87,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"be4d9ea9-d1b3-41dd-acac-c58f9535a59d","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":87,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"62d274c1-fbe8-44ae-9077-2876650145bd","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":87,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"6d4d12f7-57de-43e6-b1eb-3c9e41a530f7","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":87,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"c266092f-4195-4846-a7c8-f6ece218c326","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":87,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"c2e3225b-1424-4d2b-984c-a7873b518735","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":87,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"d15a10d2-55c7-4aca-a007-8f4766b46298","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":87,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"6daf3fb8-1bde-4daf-8bed-486a091763d8","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":87,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"2ef067c3-bbe1-43dc-ae58-89dedf61e370","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":87,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"53c6eddf-c0c0-4451-a323-a11159caae5e","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":87,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"81543c82-f6fb-4935-921b-13a52ddd0cc3","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":87,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"6d145169-3876-4585-9edd-506b666146ba","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":87,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"7e7dc886-fce1-43bc-893b-8a4c265303b1","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":87,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"5cd68e3d-e72e-4266-a1dd-8dc42a177f35","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":87,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"45692297-80ba-43ba-9fcd-ec1e62149bad","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":87,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"1831550f-2799-4a45-b179-f49caac1472d","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":87,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"81c0adfe-f503-4df5-88dd-2a4ef4f74472","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":87,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"40be1943-8f9d-498b-b65f-9d88c4dab95e","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":87,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"1842ac97-665a-451a-83b9-ac188cf5aaa5","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":87,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"a01325e1-bb36-4e9d-8450-c5eb85ad6d8d","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":87,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"95e8d4b6-2bc8-4ec1-b4e8-b377b1a60fe2","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":87,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"2a83e959-cac6-4eb5-a4b0-5417da5cd19a","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":87,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"7ec9b13f-9975-4da4-b102-4a4343f99bac","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":87,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"2196f570-0d45-4536-be99-ced3be78ee3a","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":87,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"bf40cbc6-286e-43f6-9704-23ecc7543d9f","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":87,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"66d7be7e-ff04-4fa1-ba6d-1757648fd652","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":87,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"1595acf0-0ac3-4c00-8919-6c83fa1631d5","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":87,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"f2caff7b-b348-4ac5-adf5-29c5c7fd832c","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":87,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"ad5ca4b4-62b5-4ce9-8bcb-4f14ba38bcdc","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":87,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"ab4271a7-a261-4339-8839-9870c754227a","block_type":"box","text":"Tender Option Bonds.","page_number":87,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"2adf63a4-fd48-40c0-9ab4-e4e44328a07b","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":87,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"c3b59742-5fef-43c3-9e2c-28cb87f16a38","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":87,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"1a1f1e94-e3c3-4c3a-9f29-f72eb9457f63","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":87,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"4d156695-ccb1-4ce9-aab5-9545c79ccd5f","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":87,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"0c1bc9b6-f994-4b9d-906e-171ce56fe53e","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":87,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"ae8df493-bacb-4ba1-bbb3-08466cd34f4a","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":87,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"548c90ae-88da-47d2-8a74-3ac350ae0fcf","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":87,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"5f10cebe-6210-4b4b-9df4-f16dcb7d5fbe","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":87,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"37aa88cc-7af0-4b95-b841-cc9a6529c7c5","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":87,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"94bc506d-9a63-47e1-b1c6-f71a7c4b7962","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":87,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"b29e341e-71b0-4c4b-aa00-87924a2560df","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":87,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"422bf7d4-daef-4d90-940b-dc5ab49d65a9","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":87,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"bfc86a6d-66e1-4a22-b7da-9f16d1ea99d8","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":87,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"de021b8f-90da-4fce-9b0b-043fa9c2a07f","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":87,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"88be2fd9-dde0-496e-a51a-9ec14464b23c","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":87,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"a88bcfaf-b3cd-448d-84b1-838d9b42e99f","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":87,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"bc59a269-8dab-43c7-94e2-717012085a16","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":87,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"d7a867ec-2c4a-469a-8c7c-29c9843192a1","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":87,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"0fc56c52-5183-4080-84c0-e8ce5a0c68e9","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":87,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"8c5fd453-f845-4409-acec-b0a88c062ee6","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":87,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"cf794cf7-b075-4c9c-887f-3f4f8258e05a","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":87,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"054c02fb-5481-4ddf-8ff8-c8ef9988f0ff","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":87,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"e853f9a7-d850-4b19-8aa8-18ec1ea68e8f","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":87,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"b36a602f-0d4f-46ac-b3ef-944b2e75e6d3","block_type":"box","text":"participation in the TOB Trust.","page_number":87,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"4ebacc9b-44bb-42fb-b1eb-017c9ef711d9","block_type":"box","text":"II-58","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f9c4a8e0-3c93-4294-8a20-f5163923561e","block_type":"box","text":"NM0926U-5975843-87/228","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0a070c0f-3c3e-47d8-84f7-5a918cc93fac","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":88,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"72b8b564-3768-47a9-821a-f1286832a0f7","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":88,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"a4c345ab-7e72-4a1b-9da8-de031aadf718","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":88,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"e9f352ff-7bfb-49ab-8919-effaa0f4fcc6","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":88,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"212fb6a2-996f-4ad5-9aab-ab25322418c2","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":88,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"75d2c8d2-8191-4693-bc71-2146ea1cfd80","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":88,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"fe88114b-ea52-44b8-9074-d962fe58f75e","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":88,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"9d8c41c5-c8fd-4227-92ef-dcf909cf327b","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":88,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"34b2a281-84c7-4b4f-883f-fd0a96a0e5e9","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":88,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"580dc271-b845-4afc-b674-eff3eedbcc82","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":88,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"622fd0b8-5c8e-4b4d-b557-384ef8b6c27a","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":88,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"5eaf4c7b-bbd2-4d6b-8705-7f66a6a6bb1e","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":88,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"73d22279-13b5-40ba-aae6-29593299b066","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":88,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"72273c6e-ebaf-4a74-813c-e7d79c24469f","block_type":"box","text":"issues.","page_number":88,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"84f2a2cc-8f64-4375-af93-ae9964445a25","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":88,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"abc7b0c4-33d9-4533-9846-9e7abdc40092","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":88,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"83462034-fd57-432e-b316-fd50be32dffd","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":88,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"685f043a-1238-45c1-bbdf-fc0e743714f8","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":88,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"81dddc2a-e71e-42c5-9189-f2397c95c4bf","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":88,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"93718603-e430-4689-81ed-f243f322c88f","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":88,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"96d3471d-71a2-4d15-9a69-a4137d95ba82","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":88,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"2818d8d6-9721-4b3f-bb42-d1649e216c33","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":88,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"e560a4ad-9720-4988-ba7a-7134aa4716a1","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":88,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"721a988d-79ef-4665-9a77-a8ce8cfb0bf3","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":88,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"20a842ba-0066-4cc4-a8a9-a95209863aa8","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":88,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"bd082cfd-d415-4450-acd4-842cd50d9e0a","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":88,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"1d28c508-ab1c-4cff-ab1e-3b02ebb44aa1","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":88,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"0e9bd414-4ffe-4100-8089-be7d03a3d21c","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":88,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"1416e134-26e5-458b-b41b-8eb0b29b106b","block_type":"box","text":"i.e.","page_number":88,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"35162d52-8982-4b21-b1c7-17d984a33192","block_type":"box","text":", the Fund). In contrast, in the","page_number":88,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"b2c9631c-8e03-4f25-99b8-38f51d6f22be","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":88,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"4d628be2-2336-4e4c-b6df-ce4d3e915fed","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":88,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"d8e25371-d738-478f-9fdc-09cc2b34ef30","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":88,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"8d9e61ef-e216-4b33-b8ad-d29f4d52820f","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":88,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"8dba0d5b-7639-4c24-9a3a-03101a43c8aa","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":88,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"e7f9c92e-fa8c-4210-8d0c-ee0d7d721116","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":88,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"4031bfeb-08e5-4ad0-990c-c2d965034980","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":88,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"e3cd168a-0d00-48e5-ba75-bdb60883d9d5","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":88,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"f4ad2cae-ee54-4dd3-bfa8-962feb47a50f","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":88,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"8ea1ae79-8202-4a6b-b664-498c12e1f9e3","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":88,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"99872796-b881-499f-9eff-141ad6c74068","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":88,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"a3d625c9-2ae9-4320-9230-5a1c9732ab92","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":88,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"d857c96e-2b21-4b30-9dd2-b91975acf3c8","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":88,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"0d9f341d-92ea-464d-b3d1-f3c7eeae55c3","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":88,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"c16d356f-9566-495e-a0b2-385b4ff433c1","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":88,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"1fd8212b-1d84-449c-bf40-49ea434c2813","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":88,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"7b0ab54f-2712-4834-a2fa-b86aad64724c","block_type":"box","text":"Trust.","page_number":88,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"409859a9-dfd2-48c7-a406-f87fbee5d0cf","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":88,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"541e12e1-b842-402b-805b-871d19555202","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":88,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"489067e5-ba9b-4237-b1f1-84148a1c3b7d","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":88,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"0f6d7d78-6d18-4a6c-ab38-d47e55c1865a","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":88,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"780122af-e02e-44d4-8a0b-27f6adf59705","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":88,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"e1a4966d-4751-4393-9dcc-51ecb699268a","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":88,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"10097cfc-b22a-4607-91da-f0936348caa6","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":88,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"a98c4585-6e2d-46b5-bc26-c70aab07b7f9","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":88,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"2d8c3373-13fc-44a6-9eaa-c54fe015f014","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":88,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"0c3372ec-8efa-4cf7-97e9-a8fed3e332c5","block_type":"box","text":"II-59","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dee0bc04-b84b-4ca4-902c-2e517f0900bb","block_type":"box","text":"NM0926U-5975843-88/228","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2edafcb3-c3d9-4147-adb6-825dab2e7b7c","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":89,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"790f58bc-b8cc-4ac0-a57d-d77e4d6583ee","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":89,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"bb0520bb-2006-408f-bf7c-290612fe60d0","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":89,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"92cf3e53-7f82-4f51-aab6-e4f6c2ebc8ec","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":89,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"dafb1542-9b2e-4f3d-90ad-e22bbbaba4a1","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":89,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"5d7439fb-8dc6-4156-98c6-c32f94d64a64","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":89,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"6bbc181e-99ed-45d0-add7-bd6134c9365b","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":89,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"1565331e-65f4-4385-920b-fa69bd69f286","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":89,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"aab2c396-1603-4540-b444-e85c18af1040","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":89,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"3abb7622-b22c-4ab6-a2a8-47949adf84d7","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":89,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"44cd88fc-990b-4d86-99c4-ebb1e73f8d2f","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":89,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"23d3f3ba-1788-4e5c-8704-4af330f4177f","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":89,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"4ffec71f-6ecb-4192-9227-56e5d2252dc4","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":89,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"4b00fe65-d1ed-4b3e-ad6b-e0d1f5509f98","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":89,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"6d3595e1-e610-47f6-8e0f-405e354205c3","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":89,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"72275420-5e34-40ac-8016-3853c41d0d36","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":89,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"98a669b6-5767-465d-bf33-b5e5030fc424","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":89,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"7f563c7b-eb07-4556-b17c-b4768baad50d","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":89,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"f3b1ca16-324f-4753-bf18-7d16dd33dcde","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":89,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"2157b7a8-4757-4d55-af6c-56d12a008c27","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":89,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"5f6388cb-0add-465e-9029-979751a98985","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":89,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"06313ec5-af03-4147-ada1-9e7b56089e2e","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":89,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"225d6084-cf37-41a4-ae8d-7c328d0ee221","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":89,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"ca0bed6f-737c-46ca-bbab-dfee5473527b","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":89,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"8a3ad537-1932-47c3-a27b-608bf55db6ff","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":89,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"5bac9817-bf44-4bd0-a637-2ce1c689f9da","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":89,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"da4bacf5-4266-4c06-8354-9792c14a3057","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":89,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"5515cadd-ac1a-4b24-a966-b012f83facc0","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":89,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"be5a2bd4-be40-4efa-85ce-da19e7359d4e","block_type":"box","text":"i.e.","page_number":89,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"765e44d8-2722-41f5-bbaa-9a189aafadea","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":89,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"ea524cf4-b740-4601-9153-91fd62241840","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":89,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"dee3b0ad-1840-4629-acc7-42f2e615660f","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":89,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"82978339-bef7-43f7-becb-56374e5ec02d","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":89,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"ae1d9811-5785-4355-8f89-848038b60bac","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":89,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"2d81f44e-c418-452b-9347-f1043657dc4f","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":89,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"2c19de98-04a4-4cb0-8349-87a5faf1838d","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":89,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"8267178e-a15a-4357-8be2-582735dc1965","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":89,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"b8c7a4d0-09b3-4591-879d-cbb2c695ad7e","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":89,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"3771e1cb-5332-415b-b841-ec8d945c7550","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":89,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"4c8e8bd3-83b6-4840-8e8b-7cb588021035","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":89,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"033b881c-2d7a-457f-8272-889bf3943702","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":89,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"1023dd4c-0f93-4f0d-adcd-1a21e08b39a5","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":89,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"2b33ecc1-d2c5-422f-99eb-728f7482d8d6","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":89,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"418c574c-1a13-414e-aee3-4a450870ef45","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":89,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"341538ad-96c1-43a0-9635-6102207d8a78","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":89,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"a117f8de-80a1-4dc1-8c4c-93e34ee92325","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":89,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"737c1090-8eb5-414a-be17-c845d206fa06","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":89,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"e89b39c6-8396-43be-8da0-405b7dc9f889","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":89,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"4522537c-61e6-4e58-892b-7bc08ac77a23","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":89,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"3e54e878-ba32-4ee8-be3d-fd4ff332bafb","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":89,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"81c877f3-7e4e-40f6-81be-321a3c0bfd19","block_type":"box","text":"market is not yet certain.","page_number":89,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"36f5d0de-a0e7-47ad-9cf9-374b64f331be","block_type":"box","text":"Yields.","page_number":89,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"3ca5121f-9ced-4a84-9783-e93673a845f4","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":89,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"2769319f-bfe0-43e0-943e-a527bebcd508","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":89,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"81c20995-c184-4a6a-9151-26a0486d1a59","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":89,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"ef2f0dd0-881b-4efc-9a5d-f96689d6e27e","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":89,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"b37cb71d-7d43-47cf-b2a1-d8d266fcdab7","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":89,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"2177d136-2c39-493c-9229-dd4ec3428f78","block_type":"box","text":"II-60","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"68ec8d9c-cc10-46e9-9fdf-bf3530a04519","block_type":"box","text":"NM0926U-5975843-89/228","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6dba4913-437f-440d-b663-92c54d85816f","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":90,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"fcf1f56b-a30a-4894-83e7-29dba992f092","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":90,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"2d09d259-d4d8-4d6e-9ea9-16175940e597","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":90,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"db9de1c2-872b-4883-a7f5-796362e1eaf7","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":90,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"b3ffc549-5ae4-4d32-930f-05a563b9f844","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":90,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"334f5a35-cf77-4f6e-8fd2-00bc34ba7feb","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":90,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"37991199-cae9-4c8b-b931-a320f1063f75","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":90,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"b39981d4-0665-49ec-a6d3-71027fe5a669","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":90,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"d31fb86c-30b4-4bd7-a9e1-d41c47f502c2","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":90,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"bbc66771-bfee-4794-8f06-f9a06a817137","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":90,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"e72b4d3a-b329-4ab6-ba55-6dc95da2f9d8","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":90,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"27ca0068-f576-4624-84de-ed4b40907625","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":90,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"a7e3c46c-b180-455b-b4bb-bd74bbd0432a","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":90,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"a4b2c376-6fa0-4420-afa8-5530812b96b5","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":90,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"8b1b706c-8dda-4e77-b682-7cd1dc1b9e34","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":90,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"9b5a9787-e246-439f-9edd-51ecd33a1ed2","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":90,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"e70d9c8d-7748-4021-8ffe-ab8656023ee7","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":90,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"2704187b-5fb8-49bb-b0c2-dbfeb9d4cadb","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":90,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"169cbf54-ae2b-40c0-b2b8-2e572c5f6f4b","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":90,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"c146c2d2-b16a-4568-aa56-3804e7eeb051","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":90,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"c88317ba-afc1-4c56-a381-7d1f9b57e63d","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":90,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"312f1f5a-cb02-4676-8e5b-004e6961f1e9","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":90,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"4ba7d7e2-ceb3-447b-82f0-dfee7807401e","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":90,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"7de65788-30c1-4b08-90f2-16b892b183cd","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":90,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"ff6073ad-a283-4d07-8d78-ae71cb6aa997","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":90,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"23d3aff2-22a8-4d5b-93ed-d23af467b49c","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":90,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"cb49ec0a-8611-4611-840d-63b1bab1a280","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":90,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"9d7aee58-3d00-4d30-90df-461d96068eb4","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":90,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"11b3ddd0-0389-4d05-9e32-9ed44f63bf8c","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":90,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"8470e729-5a12-454e-bc9e-f958a1e33613","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":90,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"a2e76a49-c0aa-4a4f-b6e6-cc352fb0bd62","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":90,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"84931e0f-2c7a-4bdb-bae7-22ff65c70d51","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":90,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"bc13b395-be4e-4a8b-9f08-8d849cdf9f1d","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":90,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"69d8798d-c7ba-47fb-865a-499ad7d1662a","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":90,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"47606c86-0686-40b4-821e-2c866f3d51ec","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":90,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"623eba9c-eda0-4f07-9074-18ce2c4ed27c","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":90,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"3c0ac7d2-9a83-4869-8aa1-f7432b11c88e","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":90,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"8b112d22-ce75-4cd4-90d1-8b3b642e5d58","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":90,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"52940898-d7ce-477d-bc25-62297d4c2700","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":90,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"5b072c4b-a10c-4c0d-a5bf-3cf7a55f280f","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":90,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"5dadb77b-c6ca-453b-9651-fd12b8d54d81","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":90,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"ddd118fa-73aa-42ff-ae77-c5135d207159","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":90,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"d7e098b0-3a42-4733-addc-11b6ef568594","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":90,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"dad0ecda-c21e-4b75-aeb6-78c0629719b3","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":90,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"6a7fb421-16fd-4bee-bda5-409da86c61b6","block_type":"box","text":"Call Rights.","page_number":90,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"32550d52-f4c7-49ad-b56b-13f88fe54cee","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":90,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"fd801fd7-32b5-43dd-a7f8-c97a01b33edd","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":90,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"bc99e379-7076-4833-9e0a-1d0a969b23b4","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":90,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"68bae7ba-18b5-4dff-81e0-06f86b31300b","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":90,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"6d4b57e2-f715-4cf2-9c1b-ce5688b07402","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":90,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"c1587497-e5fe-446c-83d1-7236bfa29cde","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":90,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"5667e89e-d3f4-496c-a78a-7c97f3a7fb6f","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":90,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"0824102d-3b2a-4464-a733-31c6e4510bf8","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":90,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"afc65281-55c8-4631-84d5-c6a596b9dc9a","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":90,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"78a3d770-049b-4c22-b12e-1e22b7a38d89","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":90,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"3125063f-c8db-4517-b04d-aa21bbc3f981","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":90,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"27d7552c-fbb9-4098-a69f-faf39fe1aa13","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":90,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"9eb68f8e-3a4a-4f71-ac5c-29a88d4402db","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":90,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"5cef0a75-6b0f-49b6-af2c-64d56efe4608","block_type":"box","text":"II-61","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84801bed-98c0-48bc-a3b9-a753c459da07","block_type":"box","text":"NM0926U-5975843-90/228","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8372132d-1470-4a53-8cfd-d9e264627d74","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":91,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"da33cd93-0cb9-4794-ac22-635ac637b664","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":91,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"d433ad37-741d-4e12-87fc-fcd3dc22af8e","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":91,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"dd17abbe-5b4f-4708-8463-2af3605d8eb1","block_type":"box","text":"i.e.","page_number":91,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"15b1a6bf-d5b4-41e2-b581-722fbadb099f","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":91,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"a15d1aac-6b48-4c14-b9bd-9c2bdd5bd27f","block_type":"box","text":"rates).","page_number":91,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"1363259f-099c-4935-a5e3-2081eab09c4b","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":91,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"602bc517-9802-49ac-8df0-7843755f073f","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":91,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"e6a5dd6d-b094-4093-80a6-5b6a88d6b45e","block_type":"box","text":"e.g.","page_number":91,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"5cef4b18-016f-439b-af62-96aa4073c809","block_type":"box","text":", an exchange of fixed rate payments for","page_number":91,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"7467f723-ee10-48c8-8d5d-3cc5f80f2170","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":91,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"4a0394a1-402d-4675-a7ce-f0787b09a43c","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":91,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"734cdefc-c3b7-4e14-834d-7273d3710603","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":91,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"1d1463eb-4450-4bae-a5c7-6a61d8f60ad3","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":91,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"61d18e58-0cd7-4a82-a313-18619abd6121","block_type":"box","text":"with the same attributes as the swap (","page_number":91,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"9fb02f90-16ae-4f79-817e-b1cf86931370","block_type":"box","text":"e.g.","page_number":91,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"08118a8c-efce-4e29-99ab-17824a2ac166","block_type":"box","text":", coupon, maturity, call feature).","page_number":91,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"1e7a8b01-436d-42d2-bdff-23d437bdc5bb","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":91,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"bf3434dc-ecc9-4ce7-a495-0f106740ad08","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":91,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"5ec5ec79-6ed5-402b-a041-d4d72fffd959","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":91,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"fdcd3787-8443-4d6e-83e9-f937ebd611d6","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":91,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"58fb34d4-804b-46b0-a806-676dc3d5f35d","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":91,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"55d45e81-584b-482f-a121-e83dafd1f0fe","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":91,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"98da253b-1659-4968-817f-1dafee14a4ad","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":91,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"66f43fa4-bbca-42b6-8a3e-e52822842f1b","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":91,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"a49ebfde-f746-45a7-a50d-8c400dc4f609","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":91,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"d20cc15c-8dd1-4b41-a8f9-066c814121bb","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":91,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"158f2d84-b8a5-4678-aafb-b6235f877218","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":91,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"2e67deb1-2630-4991-abee-2024eaf7600b","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":91,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"8f938f20-3aa5-4d6c-8418-c02462c41210","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":91,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"76c9b615-05df-40b0-ad01-be5cead80c45","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":91,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"da21f6cd-c5f1-4653-b95c-efa851e277af","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":91,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"54c00553-456c-42d0-b194-b289f4e77b48","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":91,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"5d4b790d-51d8-4686-af3d-eeda76ce3caa","block_type":"box","text":"Insured Municipal Bonds.","page_number":91,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"8e45e4fb-8b6f-45ed-97b6-4fcf4de1f889","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":91,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"d465a703-112b-4d70-9461-197a46650e9f","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":91,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"c26e4fb5-0f74-42e4-8669-8613fd01ad40","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":91,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"c556015a-5251-4b6c-b142-1904d3ecf471","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":91,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"df54bb55-378a-4c1a-89e2-b78781f011fe","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":91,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"70679c70-9316-4c5f-a4f7-6962c79c98f1","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":91,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"9ef278ee-39d0-421d-872f-870c2ad3673b","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":91,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"90515e12-1696-47f2-bb75-f32aa7673fc5","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":91,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"527ffeef-87bb-4aa6-9e98-6ebcd17bedee","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":91,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"541fe371-30aa-45e0-9063-fa21f1d9f406","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":91,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"a1a1c8d6-7a18-479f-a506-97526403e095","block_type":"box","text":"bond could drop.","page_number":91,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"8614c7dc-3558-4212-8267-6ddaabc785c5","block_type":"box","text":"Build America Bonds.","page_number":91,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"29cf4e2b-5fb2-4d0a-b3a8-38b2bbf438fd","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":91,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"32e545b2-90c9-4086-ac7d-dc2e0634c775","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":91,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"16e67f26-441a-4f3d-9c24-d746556df915","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":91,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"f8f033f5-d167-47a5-b625-b71c691761fd","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":91,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"d40c654c-2684-4b75-b0ed-c01b63b0f2c7","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":91,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"84c154f1-9adc-4d8c-b01c-5561bafd0205","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":91,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"c98bc512-b5fa-41de-8d5a-5873b877fcbe","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":91,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"f5a71563-fd84-465b-b260-b0d62d9144d5","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":91,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"7f516c3d-a1c1-4576-a337-e7a1d3ee3ffb","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":91,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"55b61d6b-51d5-4efb-bbcb-8b64fcf72901","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":91,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"e7998bbb-6986-4249-89ed-81c678045707","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":91,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"c9214ae7-2332-4b1c-91f7-8b38804f65c3","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":91,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"84c2ea98-b349-44db-93d1-f9a6ab5dd31b","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":91,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"5d0ad809-1e99-48f9-afc2-e1e88810babe","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":91,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"0bd64828-e390-4a46-9c28-41d7aa30197f","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":91,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"06ae09ef-c8de-4d3b-8aa6-83157d9a88c5","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":91,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"c92a18df-1800-4fb4-82af-a6a618dd1810","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":91,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"ee6f0550-306f-4bc9-94c8-ba76c4bf396d","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":91,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"0a272344-f724-40c8-b21b-3d6b07563579","block_type":"box","text":"II-62","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c5eaee6-775b-40b0-a621-909c513c1476","block_type":"box","text":"NM0926U-5975843-91/228","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3f2c5b01-c00b-41d1-9924-f7b475cfddad","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":92,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"9e9f5a01-1ed7-4ff2-b133-9482efc69bc6","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":92,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"5af7768e-5bfb-4417-8037-6cc6e0acd5de","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":92,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"568935c5-480a-40d2-a9aa-3f222c0037e8","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":92,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"f5f434c3-8aaf-403a-ad84-322249851aba","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":92,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"3543d29d-6311-4f96-9b7e-f1532e2ca9ee","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":92,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"a6859fcb-e8ff-4fbf-a11f-dadede0b9f7a","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":92,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"7fb21f3a-c317-484a-8575-807fdc0066ee","block_type":"box","text":"their face value to the sponsor (","page_number":92,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"8bd1fcae-0bf9-4e49-a11d-c8922c15e1ff","block_type":"box","text":"e.g.","page_number":92,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"4ef7af59-83ea-4297-90b1-10d1e3980eaf","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":92,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"5658d5a5-38ed-416a-b6d7-df45cd1dd5db","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":92,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"fadd7f9f-1d4f-4689-ab39-1949a54e510b","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":92,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"df54d4ac-d581-400a-a2b2-dda7729e78b6","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":92,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"80bd3c61-4630-4cb7-8fb0-7edbe165a0b0","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":92,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"9962f820-c2f9-4d93-bcc0-d36fdf96693a","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":92,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"eb1dc887-ce76-4ef5-acd4-82c9b5e3c014","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":92,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"a1602946-0a33-4d4f-9ed9-44c6f6bf10d8","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":92,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"0c04e8e1-50fb-4de2-aba3-2fbd3d8269d0","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":92,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"4ad01463-0bea-486a-8972-5b543f33132e","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":92,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"20cff329-501a-463c-afba-eaf1019fab35","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":92,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"fcc84886-e539-48a5-815c-01df54f47755","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":92,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"c5b084d8-c4e5-42af-ad5d-6f4b307a3753","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":92,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"b1c763d8-c336-454e-b014-9127cc6fb260","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":92,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"c5461933-fad1-411c-9c04-860b55be0971","block_type":"box","text":"such opinions.","page_number":92,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"9fd0269f-c632-481b-b126-246c58f6263f","block_type":"box","text":"Operational and Technology Risks.","page_number":92,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"389987cc-6571-4883-b168-8d7a06f81de4","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":92,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"17c32c64-10cf-4ae1-a912-cc43b1ef7178","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":92,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"ab451eb6-1f96-4a46-a1e3-1ada59ddae99","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":92,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"a888573d-6520-4955-8780-203a689a0b4f","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":92,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"e2c21434-39ca-4b89-a79d-59346d4c1e49","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":92,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"8a12b932-9715-461c-a243-d65776c06a1a","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":92,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"dac7e13f-323c-4d25-a342-58f9ba2cfeb8","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":92,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"fd0ea371-0f27-459e-90bc-21738b2ffb2a","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":92,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"2fdf456a-5c48-4ddd-af19-82bd86f95899","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":92,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"622a4f23-cb7f-4e7e-986c-dcc471808c93","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":92,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"29847b92-1257-4b8e-b3c1-de6f925feab3","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":92,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"ec6a0835-543d-4682-943d-434e8708bde3","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":92,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"c99856de-4b08-4a68-8ed4-42674ec11a4f","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":92,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"8b0ce22c-be25-40a0-82b7-4b48555ca5b6","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":92,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"b6d3b865-cc2a-4d78-800a-7bfa14ac614d","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":92,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"adb98d88-09e4-426a-a92f-2daa80b77ab0","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":92,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"44344b27-b21a-4c72-b8ff-ae115a18b4fa","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":92,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"9f9c58cb-9d0b-4c4c-ad1f-3be25d9f0289","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":92,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"4211dbcf-7377-4b0e-941e-f08cce027f32","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":92,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"38883dfa-d8cc-4f10-a0e7-1506113a1165","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":92,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"0149a47f-e796-4d5b-92f9-31e8d5b9a25e","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":92,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"142a1736-9464-41e6-81f2-a8ec50aa6454","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":92,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"e79100e8-6772-41a0-bcb0-48132c945ade","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":92,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"9721b89b-4b93-43ee-ab5d-2eb4d2d48ba0","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":92,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"89b73efe-e112-4e69-8319-7fbf94c155c1","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":92,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"fd381841-c9aa-446a-9b26-63a952487dd6","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":92,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"2db1bf35-b60c-4c23-9172-1c4575420feb","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":92,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"0d4ce846-e098-4502-ab79-9e71bfdc7413","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":92,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"36ce1406-d30d-4bb0-9edc-b261eb7faac8","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":92,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"686dabed-2733-4d44-ad11-6bc7c530a6ec","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":92,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"ba17cbe6-4d99-47bf-b883-352d638e0b09","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":92,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"d9c43f62-d7f9-414f-8078-6fd87ce71dec","block_type":"box","text":"infrastructure assets.","page_number":92,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"dfdfeeab-8f89-41f9-86c1-73bcbd4ee409","block_type":"box","text":"II-63","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"575acc81-da44-4215-93f8-e1afd0cf7259","block_type":"box","text":"NM0926U-5975843-92/228","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7d21fdb4-e0af-4125-8f00-9b05a3ae3ab7","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":93,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"0b4a67c6-172c-4192-8d2c-ae4592549d69","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":93,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"1a413f92-7010-4de5-bb3a-68bab846e81c","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":93,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"97e3bee2-d0c8-4dba-98b6-762137e3435c","block_type":"box","text":"or services.","page_number":93,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"dda43e9f-4c89-4c29-8b74-fe9bc85d6772","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":93,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"42fa8896-8208-4861-ab89-8a18bcaa976f","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":93,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"812be807-0d80-46f2-beda-cdb7f27df8ef","block_type":"box","text":"other third-party AI technology applications and users.","page_number":93,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"f07c6730-e05b-4a44-8fc1-7ce0617cafa3","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":93,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"c382119c-5626-4c35-8857-57f8853bc6ff","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":93,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"f2097f83-aa81-4e1a-b8ea-131b989ae9a6","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":93,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"dbac5331-5b54-4026-9475-50fc12f100de","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":93,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"e990d580-e2e9-4ac1-9e33-2b0579ac0ac8","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":93,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"e6b552b4-9c76-447e-b062-44eeee8ff529","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":93,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"dc5064fc-c8e3-4a76-af4d-df38d21e8646","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":93,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"aedb5a69-436d-4243-b7cc-6c564780e7df","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":93,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"122ea52d-cf67-4f4a-b837-e4ca117ecac8","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":93,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"ff22700f-7a84-4d90-b080-3cfdd9b03a35","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":93,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"cecd6ba7-a563-4748-8837-542fa74ca101","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":93,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"5056a59a-71e0-49f1-8eab-b48629d46e08","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":93,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"5aaddc93-d532-42be-a40f-401af181ff99","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":93,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"e5e87303-4b66-41b3-a3bf-47d04005f029","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":93,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"5c740caa-6eff-4b74-a619-be3a0ce885f9","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":93,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"f67f1430-b740-4b2f-a3d6-2d6e7471f946","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":93,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"fe325279-c57e-425a-a2cd-41acd9df5440","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":93,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"4a40eae1-af5c-4052-a7f8-df543d10b47d","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":93,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"0d9a8df9-9860-424a-84b1-de3dafcab57b","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":93,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"9705640e-f0b9-4901-abb6-dc56820ff771","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":93,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"8333d52d-d0c7-4a51-8ddd-0dc1c6915f46","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":93,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"88d8f91b-2ad9-4661-a7b0-760ced697365","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":93,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"938af0e2-2daa-4d0d-a9eb-06fdda7b0809","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":93,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"c931a139-5fac-4775-8827-a0812856ad73","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":93,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"ebbfe4c4-6306-4d4b-a193-19f5a65dc469","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":93,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"f872c949-82be-4c37-8e7e-793817273454","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":93,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"12024624-7472-423a-be77-52ed9a679108","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":93,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"f0027dcc-27ee-48c9-ab8c-32621fb8e699","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":93,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"19f078d4-76ce-44bc-b555-88d6bdc3b554","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":93,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"a4d91b57-15bb-4d30-b971-8114f2ab5599","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":93,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"ef54cc22-7ead-4506-b5ea-a2636fc8a4a4","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":93,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"db8a8203-5c6b-4243-b01a-7ef4aadd480f","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":93,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"9c5ac2ce-8f61-46e5-bd74-30d163facb51","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":93,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"05e3d55e-9e31-4479-8314-d6ab24f1a8ff","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":93,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"74cee3d2-2238-42e9-a323-b2b3b219c369","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":93,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"4ea1477a-a380-4531-b5af-677d76e9820a","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":93,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"0f1a375c-a1d2-44e0-8221-6bd3843c76f1","block_type":"box","text":"resources to monitor and implement required changes.","page_number":93,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"bd5dc92b-d4e8-493b-9750-7aa6924b570a","block_type":"box","text":"Participation Notes.","page_number":93,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"b055e526-0bb7-4109-876e-b7d6b50adfee","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":93,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"6d7146ec-27a8-45e5-b067-5c769dbe28a8","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":93,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"c6b37b21-629b-491e-9591-fada17c15a91","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":93,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"70801e0f-60a1-4f4f-a862-023a28503f80","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":93,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"dc66664f-1cce-45ba-9a42-55ab200186de","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":93,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"49542ee8-e97e-4b1c-92f9-9491f1321bf0","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":93,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"cf21acab-9de3-4c90-a003-f91fde14ca6f","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":93,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"4c7c92c8-f80a-4877-a9e8-c9fdd8ef13ad","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":93,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"f826fe68-c077-438b-9f86-6983c70c5def","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":93,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"0d43d8c6-3d53-404a-893f-fbf76347453b","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":93,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"edd92786-fba5-47dc-a04c-6f6a4f88646f","block_type":"box","text":"II-64","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"054c6f67-fa35-4bca-b397-3c663758c540","block_type":"box","text":"NM0926U-5975843-93/228","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"75782d23-b784-41b5-a110-a82f96f8c0d4","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":94,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"be700468-a4c6-4fb8-9d20-5dc5db63ed1a","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":94,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"e2a53508-0d16-4eca-9e43-abef9de7c5ef","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":94,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"5cb77a37-2cae-45d5-8656-95626372445d","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":94,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"960a0461-f9ae-434b-83fb-3c1808721390","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":94,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"bfb28966-ce3d-4935-b068-b962587dfa2f","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":94,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"810bf7ae-cdc2-4a7d-8cae-3dbe887cd309","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":94,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"b9a38542-a0cb-49d2-b6ab-992e175b9a1f","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":94,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"352d0757-3957-4463-92ec-eed485d7cebb","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":94,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"0ae50ddf-bcb8-4709-a56e-9accffdcba38","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":94,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"1d72a7bf-ff44-4ed8-8eb2-ab044669ec62","block_type":"box","text":"Portfolio Turnover Rates.","page_number":94,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"14d8ddfa-ca70-41ee-a2df-8bb672aa1491","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":94,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"f603253f-8460-4935-bf2a-55e0676b2ee3","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":94,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"e0154d7e-1ded-48c5-b1b6-a7f3e3f91ecd","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":94,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"9628e9e3-edd4-4f85-825a-b6986ffde83d","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":94,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"737b7b81-ffb2-439f-b5b5-46720d123824","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":94,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"6df9181e-6701-4c4c-9f13-bbfa92618c46","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":94,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"8c9af583-70b5-4dab-9daa-f92d853f40c1","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":94,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"d21e04eb-813e-4abc-bd67-baef77d2509b","block_type":"box","text":"i.e.","page_number":94,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"4fcf4e3b-16c7-4971-a85e-b4dd3a0c556a","block_type":"box","text":", 100% or more) may result in","page_number":94,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"7bf37711-9234-4ad9-aa2b-b7c6a92da970","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":94,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"93bc45b6-09ae-492e-886a-26cfdd63bf5e","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":94,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"6d9c7595-fcc9-4e7b-a451-2dd34dde8b32","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":94,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"c4f299eb-923e-4069-8a72-ec5284239f59","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":94,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"470007bd-b06c-4231-b0d8-7dca01788e7a","block_type":"box","text":"Preferred Stock.","page_number":94,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"8f3f28ce-3ece-45a9-987e-a6f57be4cdc6","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":94,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"1d2827dd-3947-442f-a0f9-804b0f1621da","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":94,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"3d05135f-43cd-4c24-b3f2-fb47a45309ec","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":94,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"abd05b03-f383-46b3-bd27-569eab77969d","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":94,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"74a15752-63af-4423-98b7-03f2f5d38418","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":94,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"890f03b7-f11c-4cd0-b01a-1af6c5390257","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":94,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"4677a2af-6257-4a39-a529-6905450e63b2","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":94,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"a1fd3946-3bd9-4a88-97ca-48eca9ac2c01","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":94,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"48b8ca2e-8771-49d2-b38a-429ce7f499da","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":94,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"5a952a4d-c96d-4909-8143-fead88c6802c","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":94,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"9abf69b9-bb0c-4535-a901-7149f6758f68","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":94,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"c4ce0af0-d012-48ee-9b94-436464949d9e","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":94,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"2090e130-c5ae-495e-a82c-3824208dadd9","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":94,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"1d33fa20-2dcd-4625-9d6d-29b0fdc58d4e","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":94,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"37f238c6-1f39-472c-9335-71e10dda4ecf","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":94,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"a95a9b2d-c404-4ad3-b697-3f44fe770a22","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":94,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"b4efc9eb-9b6e-4f4d-b801-f4a4a67d06ff","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":94,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"b8b52017-a3ff-4a73-9679-abfa27c27cb2","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":94,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"e6bd9774-e7ba-4f04-ab72-bf7f07c9bf0c","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":94,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"b94cd279-9976-43c6-96e1-4c9a30a2f76b","block_type":"box","text":"Trust Preferred Securities.","page_number":94,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"d28a3f75-596e-4e86-92fb-79234bd39b4e","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":94,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"8f1efddf-46ac-4a3a-b5e7-f5ec1e215075","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":94,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"6a5372b8-1afd-4081-9ad1-22532d022086","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":94,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"c7a68808-c626-481a-b5fa-38bc7ac36224","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":94,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"f6700c54-c1c5-4c21-90c7-b7d09586fb90","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":94,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"7bfb22e1-5ea6-4a4c-9526-9e84ce4ef150","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":94,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"095907b8-8194-4575-a67d-b0aefeaebfdd","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":94,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"7573706f-e952-423c-a227-ca0cf2eb95e8","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":94,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"1cfe23da-33e3-45f2-acce-b83558a9e226","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":94,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"94ab0a5e-4819-4e32-affb-cddd12ae3e0d","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":94,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"67e7b12d-1d9e-45a6-950b-72c46aaae1ff","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":94,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"1266c7df-cd4c-43db-8549-ce21b8adf6f4","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":94,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"493fadb9-402b-42a9-ad48-5c06e855156e","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":94,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"fdc7e8b1-8621-47b5-a932-8cdeb7f8d7cb","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":94,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"35a5cb30-2943-45c6-87c5-16b1a1f8895d","block_type":"box","text":"®","page_number":94,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"4e44e9e0-17cf-4a3b-963e-423bf397bc8e","block_type":"box","text":"”); monthly","page_number":94,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"ce3e954d-d4ce-44de-bf20-1ece37e16f7f","block_type":"box","text":"income preferred securities (“MIPS","page_number":94,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"97ef24a2-54c0-4d97-afc3-1e97310e9eba","block_type":"box","text":"®","page_number":94,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"126b2f8f-a952-4e4c-aecf-c94c0482a97f","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":94,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"d9ac8ba3-f765-4b8e-88fb-fe1c7f6ce424","block_type":"box","text":"®","page_number":94,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"1cd6d52a-e43e-47eb-966a-b28dd6d82116","block_type":"box","text":"” ); quarterly income debt securities","page_number":94,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"290c643e-8085-453a-96d8-9c7442bdb96f","block_type":"box","text":"II-65","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4dbe7b66-70c8-4013-8f0f-3ed1fef68d52","block_type":"box","text":"NM0926U-5975843-94/228","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"dff4cb67-f5c9-421d-828a-c705ee3dca26","block_type":"box","text":"(“QUIDS","page_number":95,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"79f94bca-e806-4e00-9fdd-a477c5864e75","block_type":"box","text":"®","page_number":95,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"98c0729d-90f6-45db-ab79-fdf1bf32795e","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":95,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"78b15175-798c-4851-99ff-b7b0fc2c5161","block_type":"box","text":"SM","page_number":95,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"3498c536-8d17-4b31-85b7-03f6c83a4fe5","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":95,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"e311e924-512f-4655-b887-d379d4fa899c","block_type":"box","text":"®","page_number":95,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"c25ede42-0670-4276-b4b1-e6065f37aff6","block_type":"box","text":"”); public income","page_number":95,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"8ad2b2cd-5c7c-44a5-8e8f-a7ecb0ea2f71","block_type":"box","text":"notes (“PINES","page_number":95,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"40bc4727-7db9-442a-93d5-c5897b1f9dc7","block_type":"box","text":"®","page_number":95,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"e2194b87-be04-473a-8eb1-a2d2c0e2fe1f","block_type":"box","text":"”); and other trust preferred securities.","page_number":95,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"0338386f-3097-43f3-9c23-e3d9bd05cccb","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":95,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"cd972cee-d835-4b17-8b0d-6df2151ff06e","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":95,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"bc6fe583-4b71-44f1-a48d-e22a5d49a86a","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":95,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"a4565840-3735-4bb8-a2d8-8e98664231eb","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":95,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"0cbb168f-f544-40be-849f-4990965f812e","block_type":"box","text":"regard to whether all payments have been paid.","page_number":95,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"822c95a9-1387-41ef-8120-b43a638dc66c","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":95,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"78d483ca-deb6-4031-8a67-8048b484d846","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":95,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"ae971df4-6d79-410b-ae86-e10cfb2ea7a1","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":95,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"e46acd7b-8312-47bc-8a61-79d43f917a89","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":95,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"257a6636-a128-4a5c-93d3-83ed038fd70d","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":95,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"3fc127fc-de39-4fd9-b8bc-500926146fbc","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":95,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"e00dec47-e567-4302-bb8f-0e2ca73517b2","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":95,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"5dc47a2f-54f4-4e9c-aa7c-223cc2e95ce0","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":95,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"e3f6e83a-59b6-496d-89e1-2813ce0d3a3b","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":95,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"c15720d9-ac7e-4288-a94c-6be7e9054534","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":95,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"1a776031-50c6-481b-a28f-7b43651f3e99","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":95,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"9ac752a0-25be-4214-b5c8-15f67e11c3a8","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":95,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"a3d23edb-b251-4c0a-88fc-705598a40d3b","block_type":"box","text":"debt securities.","page_number":95,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"e8cfcb00-f12c-424f-8265-4a0952d2fdb5","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":95,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"3bcbe20e-0d3a-48ce-b09d-7fa08ce8120f","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":95,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"15462c36-50b7-42d7-886f-ed16d3cc1853","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":95,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"ffeea087-eb72-4205-93a1-0e02624460c3","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":95,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"a27b6a55-6e73-410c-a3d1-ac5b94231e19","block_type":"box","text":"geographic areas or in specific property types,","page_number":95,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"1e6573c3-0691-4472-a580-62cf5762dca4","block_type":"box","text":"i.e.","page_number":95,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"71111672-dc76-49a8-820b-211cb8f98862","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":95,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"4aa318e8-ba78-416c-b24f-4bb09511c789","block_type":"box","text":"buildings.","page_number":95,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"7a36abf7-5421-449e-aae4-f86cbf925b63","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":95,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"06a8d281-abe3-44cf-9e14-0fbcd8204080","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":95,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"994c2be6-3fe3-4ace-94e4-60e2dcd58744","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":95,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"e45fea84-bf81-4523-b25b-f9e7749ed163","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":95,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"a441a677-42c9-4fb8-b630-4955d586521b","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":95,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"65569135-4dcf-44f7-9c51-051bda36508b","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":95,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"9bca60b6-1040-492a-8bc3-3deaa7152d6c","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":95,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"1fac589f-273f-47c0-ab5f-c82af1765cee","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":95,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"3c60709b-093c-4ef2-b367-47b9c13ef0bf","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":95,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"962fcda0-cd31-42e0-b248-cf047a9d4ee2","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":95,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"6d55ccf3-40ed-4af5-bfcf-25c923e5b1da","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":95,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"26a4e6a5-1026-4db1-a8cc-4063d9ded945","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":95,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"1ff1fca0-9878-4795-a647-5f8f66537944","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":95,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"4fbdd527-f581-41a9-97e7-bf3b45bb5874","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":95,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"9305e065-7801-4e82-ad96-aa79e75b8e7b","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":95,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"c93cc959-d730-47d7-bf42-6ea41329032c","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":95,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"b01f3145-87f2-47e0-89aa-d6141a363164","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":95,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"78c3b6ea-4dad-40e9-bd3a-083a823a6a20","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":95,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"09c21f7a-c939-4b38-b341-d7b6ebbdbf5b","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":95,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"6925fb88-3f11-493a-b89b-d732185cf1bc","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":95,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"cebcf6ab-ed84-4933-ad84-32aea90d69c5","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":95,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"53f022c8-8c2b-4998-85fe-88c348e7b473","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":95,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"9407fee8-4f35-4477-a94a-8e360c4a52e4","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":95,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"970eb322-fa62-49c2-9b67-dd3648f644f3","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":95,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"c836ba92-4bde-4c3f-a36d-981ace0fec95","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":95,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"449a3b2a-9438-459e-883d-f1c2a27a659e","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":95,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"bd2943c7-4838-4daa-9aa6-d4779e6771ab","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":95,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"abd6c83a-d8c7-4aa7-b3f6-866d1af72a31","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":95,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"37b5c11f-57ab-410e-b45f-931f84dddce0","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":95,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"68b6328d-df85-474d-bb13-5ee3251552ba","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":95,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"f996178b-56d7-4b61-97f4-6d04a0b80f5c","block_type":"box","text":"II-66","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"035b82bc-c076-489a-ba00-5e32e9180c6e","block_type":"box","text":"NM0926U-5975843-95/228","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fb306a40-44c9-49d1-900d-69405dd6df29","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":96,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"6693dd63-5d4a-46a8-ae62-6a3b722e7a86","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":96,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"8d64f0b0-35d5-4643-9920-283ebc802ac2","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":96,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"e59688d6-4cc9-4bdf-b381-f39050cc44d3","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":96,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"61259857-0d40-4e26-961d-d143a71384fd","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":96,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"0af47cc7-33cb-4a39-98e3-e95e7e935fd3","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":96,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"14d0626b-17c0-47d1-a2a0-e8549719a506","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":96,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"5d61d7cc-d71d-4d9a-9fef-565abc0f5d66","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":96,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"2f0f7081-42e1-4a15-bf4d-0f5dbac2965d","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":96,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"a1f359b0-7269-423d-b1ac-208937fbfecf","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":96,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"dbd87f25-a7ec-4a43-bffb-18392c29b359","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":96,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"1d163455-f36f-4385-b01d-44fc9bd6c6c6","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":96,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"a4e08d3f-0cd0-428c-9929-09cee6adc3f8","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":96,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"6c584a90-d8a7-4518-bbd8-4a8bf66e0966","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":96,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"48dccf90-50a5-431c-9351-a6805450953c","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":96,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"a60313e3-e1c6-47ec-8afc-bf476b00c949","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":96,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"87cc92a7-6372-41c5-b39a-7cfb37ed586d","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":96,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"48ef4283-e490-42d5-8bce-d74907d1fcd3","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":96,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"4c553822-3961-4b1d-88b2-a9a4aa260cb6","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":96,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"0f29a683-6009-47ee-8a11-10186bb8bd2e","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":96,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"4da30256-b551-4623-bb91-f3c94b3d8a6b","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":96,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"73bd8bb4-34fa-4466-b66a-14f19a0a193d","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":96,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"46274526-1c67-4813-862f-ef08950eeb2c","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":96,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"8e8f458a-923c-4183-8497-e947e3889025","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":96,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"931c6fff-c831-4bbc-83a3-f8f53a0fc4a5","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":96,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"1e807efd-2df7-45d1-b978-47d324ea6025","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":96,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"14514dc1-8382-4123-9841-a55d3d9a1a6e","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":96,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"3ceeb699-8639-459a-98fb-4c6d0beaa7a5","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":96,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"bcc0e9a8-7231-4b18-b43d-2602deb0ed45","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":96,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"eda1973f-afe5-41e4-a54f-c03dbe83f162","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":96,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"fad673a6-2c01-49af-bd57-f1fd6a35c926","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":96,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"3b51ef0d-5b88-4c9c-ae63-7e7adcef0c9b","block_type":"box","text":"conditions.","page_number":96,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"6932a3fb-9ee3-4d83-b925-89d6e2ad6d33","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":96,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"6f869c8e-d240-483a-ba96-769f96c35386","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":96,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"f71a2323-8244-4351-b923-2de5db0987ea","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":96,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"4dfd7c0d-1f60-4540-8340-c2cbc13223c1","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":96,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"9865d223-7fd5-4263-a936-255e35b7145d","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":96,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"fbe0c127-aafd-4960-ac98-23962aa4530a","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":96,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"1e420b91-8eeb-44f4-9dcc-166a774345bb","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":96,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"038f053e-9026-4120-9180-2d182e01c751","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":96,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"d905bf49-ba2d-48e0-b6b4-72afa60fa34c","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":96,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"1d504ab0-3b04-48df-8de3-c83870ebc68f","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":96,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"53a286b4-a592-46b3-9a48-72dc7020bcc1","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":96,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"b20b23b5-f4a6-42c3-b5be-ce1654c2d172","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":96,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"aee32758-c73a-456e-9330-daed81842871","block_type":"box","text":"affected by such events.","page_number":96,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"cf96708c-5431-45ac-83b1-25b521af2bab","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":96,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"6912aba5-91b5-4c47-965c-e6b217fff0a4","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":96,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"6ae8bc7e-c862-407b-8fac-febc7e98e611","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":96,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"03e04cf9-8e91-4b8a-b4af-77941c7f2ef2","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":96,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"a0bfa26d-10f9-4468-8668-c5e954a63a8c","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":96,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"7dffb924-82b0-4cc4-bc96-137ddf013f71","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":96,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"d1fdb5d7-f45b-4020-8298-fc7f4c6533c9","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":96,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"6d2a77cd-28db-4176-adc5-10f2f25261eb","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":96,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"5ed63aed-ba65-4fb3-a94d-542eaa58206c","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":96,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"8b7eb2b3-36a0-4287-ae1f-8ede1e376f3c","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":96,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"37ad2fec-2d61-4721-987a-4bfa748c41b3","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":96,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"8b42875f-490b-468b-9a4a-e1d3e3dd0212","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":96,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"40866cca-6106-410b-b7d7-469c37303c9e","block_type":"box","text":"II-67","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"41146c4a-2555-4a2f-9e9d-361767dc43aa","block_type":"box","text":"NM0926U-5975843-96/228","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"36dbdbf6-4fd7-41cf-b8f0-83c6cc1f7749","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":97,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"8eeeb6aa-fb1b-4348-ade6-fca72be23cca","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":97,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"07a9af0b-9449-4f77-aaf4-66412c63eec5","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":97,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"267d0bab-8ad9-4242-9b78-1593384a8692","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":97,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"a72b0de2-5f85-4056-86a2-7f2364fc2ad0","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":97,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"bf7d5048-861c-4b04-8a34-c9f2d3bbfc89","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":97,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"bb86e142-2f8c-40ff-845f-b2707ba49806","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":97,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"e9830c3d-0074-46d2-8967-60a5658f08e2","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":97,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"d19b1c70-a882-452c-b081-048865204648","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":97,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"1902b3be-03ff-4e30-9b35-8c2a2bd0ecc3","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":97,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"6e0038b8-f0b1-4e5f-858c-d3ea1ea05f69","block_type":"box","text":"investments.","page_number":97,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"09b5e1fd-08d0-4d03-b3c1-5c0334f3b60b","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":97,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"8727258b-da55-42b3-a7f1-2f92278febdb","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":97,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"dca0418f-c6bc-4633-bb67-33ee642df690","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":97,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"f25d78f1-3cc8-4a09-9f8f-c5790a34c1cc","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":97,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"d9bb6b45-aec5-4b26-ae6c-dedbdc53da2f","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":97,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"f1eeed48-282d-4638-8bb0-9559ee33af90","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":97,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"3293a386-25c3-4039-85a8-1438da12b1e4","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":97,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"740e5c3c-cc42-4126-bc8c-888c3506093d","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":97,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"1e9f32dd-8232-4a83-86fd-5d407a80e515","block_type":"box","text":"Legal and Regulatory Risks.","page_number":97,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"c773d34f-4c46-4f2f-9ca9-bc94e968cb7c","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":97,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"1e80fc9f-a8b6-4cb9-a4d1-53d943bedf36","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":97,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"02a41c6b-5909-4054-bd60-ae355518d34b","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":97,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"9327ac45-182a-4217-bbc4-b70e8b05438a","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":97,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"2508e926-7b3d-4a89-a89a-a1bb2557914c","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":97,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"26798e72-b3b0-4c7e-bec3-50d81dac70ee","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":97,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"47f43961-b086-4ca8-bc49-9274d1fce8cc","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":97,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"13075850-ce7f-400f-bb07-b7de09a803a1","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":97,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"6a5dfa5c-8262-4c33-a3f6-3955e9f0a0a1","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":97,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"eca85181-789b-45ce-b516-c2b2b6c28b4c","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":97,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"c0be40b9-8c0d-457c-889d-a7b9cb813587","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":97,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"3e75fee9-dbb0-4fc4-a2c1-988d2af77ae7","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":97,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"b8961beb-7e9f-4387-bb18-f3b465d98b1e","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":97,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"f3f11ac5-54f2-420e-bfed-ec8cb77c82e7","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":97,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"6940aa72-e78b-4710-b854-ddbb5758af06","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":97,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"22c22152-d1c4-4cfe-ae38-260600c03c35","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":97,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"8ff33b0c-6a43-40af-bf51-664cc5812de1","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":97,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"87968a71-6910-423c-89b2-9eeecb5a84a3","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":97,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"d79f5dae-f60b-4bb2-883e-fd3d8ace61dc","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":97,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"a91bfa9e-4fef-441d-a197-030220d51e1d","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":97,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"500a2a98-f2c4-469b-8a4c-3deebbb35e80","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":97,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"b71d2a9e-708c-4535-ac8a-fa10571b4fe6","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":97,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"2779e36d-9383-45ad-9788-e24794fc5f1a","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":97,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"ca5d125b-0e7f-4e50-a6f9-1b943732992c","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":97,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"8aa56e0c-a9a6-4733-aa71-4edf0cf0a01e","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":97,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"9b7efe1b-7a7c-4d7b-868f-373c72135996","block_type":"box","text":"Geographic Risks","page_number":97,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"e3742e3b-5583-413e-9a17-9555d77605e7","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":97,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"48583838-3130-454a-a794-6f9cee907b80","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":97,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"c9370cf4-0561-46fd-8dbb-9b6735fa884b","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":97,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"1615c63b-85ac-4c8e-a796-ebe2de55b63b","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":97,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"1bc8a624-4f16-4626-b003-659f4e59bb42","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":97,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"63acd044-5da5-457b-8ebd-e148cf38741e","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":97,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"30062557-a3f9-4b85-9e30-728186658a1b","block_type":"box","text":"Fund.","page_number":97,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"5f5dcb43-4671-4698-a02f-1faba1fb34e0","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":97,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"5275bedb-7bcf-47f1-aefb-896b2f09ede0","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":97,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"e0be32b1-90ce-4f07-a1da-210a92b2b519","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":97,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"77c370bc-de11-4508-9339-be22a262277c","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":97,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"d98a609f-d1f5-43bd-9382-518a75272fe7","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":97,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"ebf149a4-6587-4e1c-862b-b1589be9ad9b","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":97,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"d1dfecf2-54d8-442a-a9ee-8b7997a11c09","block_type":"box","text":"II-68","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1af504d9-a990-4c9a-b495-53dab23e0f81","block_type":"box","text":"NM0926U-5975843-97/228","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"87489a4e-a49a-4aad-8e25-abda523401f5","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":98,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"008a6548-4b84-4edb-8882-d9458fefd13c","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":98,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"beb7cf48-516e-412f-a9c9-d64fac241622","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":98,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"5a564156-316d-4586-b093-a05334f43857","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":98,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"565efd2c-8d61-4792-88c9-5711cbe7835f","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":98,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"0ef1af4b-8a8b-420f-bd3d-1e99ea4975e8","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":98,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"92f957c8-871b-4d36-b695-e29f48089332","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":98,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"7fb0c65e-516a-4c00-9d0e-695f6beff71e","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":98,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"d1145d0e-6560-4c65-93e0-1a447cc4d9be","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":98,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"e937a3ec-8b60-4b23-af12-69c592181b8b","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":98,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"1d8b6d68-6fac-49b2-b596-d6f464d2ccf9","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":98,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"63df96d0-0704-4d7e-9215-663b5d6e3078","block_type":"box","text":"e.g.","page_number":98,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"606687fd-a31d-4ddc-a8a4-11fd746d8378","block_type":"box","text":", SOFR for","page_number":98,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"8f9bead4-3bab-4049-89e1-3847a7ce37c8","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":98,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"6912bc53-9b65-49ff-b6f6-6e31e497f3c7","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":98,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"92f81101-a5bc-40fe-86cd-ca0fa481657f","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":98,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"59886a28-7c6f-4b7b-a167-f852685f6bee","block_type":"box","text":"determined.","page_number":98,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"f37ca352-45c9-493e-9c51-1e813ae6b95c","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":98,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"2560617d-73db-49e7-be06-ead4c25bd68d","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":98,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"4052cc50-9f33-4ad0-89ca-e3bbdecd36da","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":98,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"98230648-d75f-4b5b-9694-41784feab90c","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":98,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"bc6f7270-dbe7-43d9-8777-649e0c5cb82e","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":98,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"3ae2b943-da91-4d66-b690-dc6325765610","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":98,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"786654a6-bd33-4073-a969-821a48d1a8c1","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":98,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"3a3167b2-b3cd-489d-b5b3-f121c88fc475","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":98,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"0d4ee1a6-40cc-4467-8f31-5b9e36242c1a","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":98,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"1cec8760-9c96-4d4c-bd9c-e7e8421b750d","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":98,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"b101dc84-9835-46ed-a18d-40913f3419ed","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":98,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"6b22f5a0-9c2f-47ba-af8c-836a426eac14","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":98,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"2f377549-8fe1-4ff2-98f5-957f2ded9369","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":98,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"10b0d4a4-e004-45ec-813c-c0f55e5f19cc","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":98,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"71c57d82-e438-47fe-9b37-1203d8fe9f82","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":98,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"582c6666-7a57-4be5-be83-7c7978d8d8d8","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":98,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"63455400-c2d6-45d6-8441-0631f162af7a","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":98,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"98f0d72a-c8e4-46d2-b3d2-6849bb4b3c44","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":98,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"8d37effd-930a-4868-b9a5-95b82519efb7","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":98,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"21a2f6a5-8de7-4d9d-93a5-c5d6467d1ecf","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":98,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"7aff60d1-2e23-49c0-92e2-6ff156b806ec","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":98,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"eb563c5d-39e7-4598-9adf-b49bb66e1171","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":98,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"806ef8b4-f8c4-4943-b75f-58a355fa0043","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":98,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"ba5d8e17-4a7f-4b5c-9241-9ab73b866641","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":98,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"96e60513-fc2a-452c-84b3-3f33f4f5ba98","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":98,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"57250d58-361d-481f-9f71-e109222c2576","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":98,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"cbfd9a2d-7b3b-4de6-9833-e1c75178d30b","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":98,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"385fbfe4-e605-4a95-9fa1-a9bec3e7c3af","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":98,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"7829c795-2385-46af-aa42-711ef400ac0c","block_type":"box","text":"consequences which cannot be predicted.","page_number":98,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"7ca2c1d4-e83a-4f0b-9849-0816e9c0d536","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":98,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"e1c0e4c5-a1d3-4a9c-9877-3885193f88e9","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":98,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"7e2474e1-aaa4-49b0-8278-23c8b0e6f070","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":98,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"164fd7fa-121f-4f96-b748-9c79ff8302af","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":98,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"57b2ad84-3ddd-4684-8b6c-5af0535029cd","block_type":"box","text":"term of the agreement.","page_number":98,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"2f62733c-8970-4d43-9574-9bf008c326f3","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":98,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"7d5166a9-08e2-4b34-9243-60621fc1acd7","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":98,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"0ad89743-e3a6-4fa4-a7e1-8654766f344d","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":98,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"de263e71-c7cb-4b80-ae04-b8dd24e90262","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":98,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"1f51ee7e-89ca-4e9d-9f7a-43934beb874a","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":98,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"961ee210-0edc-4957-a3b4-d2eb887bcbf4","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":98,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"c8cd3371-9822-4ec2-952e-17331b83b46b","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":98,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"7812a59d-cc92-42c2-818c-dfb6169aa034","block_type":"box","text":"II-69","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"61f7736f-d218-4965-91c7-a966ab1d15e4","block_type":"box","text":"NM0926U-5975843-98/228","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0e83bdd0-6bdf-45db-a515-aa06c53e39b8","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":99,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"f118e15a-251b-4625-9d22-241c4fd33a09","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":99,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"2cf0cf96-8e59-4212-85eb-552a77504777","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":99,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"bde00afc-e777-4b30-b960-1f00daf07d72","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":99,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"44c6a6e2-9b07-4dc4-aa79-505e76a6c0d5","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":99,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"c6665a8d-c861-47bb-bf4c-8b384a4a5f54","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":99,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"6f5ca040-cda8-40de-9924-95eac64b7940","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":99,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"764f97e4-aec6-4b23-80ba-bc0caf117d1b","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":99,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"02403763-8680-42db-9397-723b2da97ca7","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":99,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"fa8f0f04-1f50-4fb3-bb5c-8e52f4d71af8","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":99,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"cf06c074-3493-46b9-9c6d-d546954881f3","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":99,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"c5828a7a-d92f-4c03-9a06-619f4884a21d","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":99,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"50f13b36-17b9-45b3-ab06-a238d5a4b920","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":99,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"a6e3764a-c4eb-4ddd-a4d4-45942f1567f4","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":99,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"e2f67a92-7fdd-46b5-917b-8e42b1715a38","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":99,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"4948599c-17a7-45bb-98b4-dd03df007ab1","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":99,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"57159a25-87c0-4d0d-a2ff-5183afe14eb4","block_type":"box","text":"or by another authorized securities depository.","page_number":99,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"f46c01d4-0fb4-4ecf-b5de-0269f1680631","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":99,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"25b85797-6f4a-4ffa-9562-3757226df0ac","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":99,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"59d53e9d-4188-4332-a1e4-bfeba4e88c44","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":99,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"a8cafef7-197e-434a-bc2f-49be0ccd5e5c","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":99,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"2ee2abc7-a880-4965-844f-688d104fdfa7","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":99,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"a0adc7c9-fc09-421d-8fb3-173f7292111c","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":99,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"aa124ac9-dfcd-4b3b-a0d5-42e825272fa3","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":99,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"44e9231c-be2c-4100-9ec8-65ab4d70ddbd","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":99,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"863955b1-0315-41dd-bd11-a5ed1743f0b4","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":99,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"800e3c68-1f0a-49c0-9698-a09594484775","block_type":"box","text":"the repurchase price.","page_number":99,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"2849ea9a-368f-46e2-9f2c-31b1e6573f30","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":99,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"8089e623-9011-4c0d-a7a9-5c94eb632a8b","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":99,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"daebd670-ff35-4ded-9573-7f78e35b6952","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":99,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"4f8d72a2-1bd8-4577-b489-cf92d3b4e474","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":99,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"9b70b171-9b8a-4b96-9e49-001966f5fc11","block_type":"box","text":"strategies without the repurchase obligation.","page_number":99,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"17f8b597-f62b-4594-8534-d9551c15b7ee","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":99,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"eaee6518-c4f8-4265-ae2f-2b646340aabe","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":99,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"645a59ef-9fa6-4eb2-b06b-386a93849b75","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":99,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"4fdc879c-e2cb-44ff-9e86-0b17210b83f1","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":99,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"bcbcfbb6-8f82-4997-942d-917425564280","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":99,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"f4d72d74-0df9-459e-bd95-16fce5229ed6","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":99,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"9eeb60b4-4d0e-4a71-a20a-d656bdd6369a","block_type":"box","text":"i.e.","page_number":99,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"103059e2-d296-46e8-84b6-40840e7b3fab","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":99,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"7040ea8c-9b75-40eb-bc8a-16969f65d23f","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":99,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"a3d96c9e-f4ea-4474-8007-9d7a83985d8b","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":99,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"fd3d98dc-dd15-4a9e-be79-288877c50800","block_type":"box","text":"and income involved in the transaction.","page_number":99,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"1c009795-ed53-4f1e-a0c6-7049b1c2c060","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":99,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"e26da04b-5802-4e43-b12d-bd461deedb29","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":99,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"a447c1b7-1051-4bf4-91f1-ab8acae528f3","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":99,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"1c95dbb5-9621-4bc1-b810-9ea4ab08ca5b","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":99,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"5d9bba33-40cd-4eb4-b092-03a3d913dffb","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":99,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"5bc5bf53-66f8-4d9c-8825-e3d4a28a26a8","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":99,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"ef4ed4ce-4ba3-4415-aabd-5873d29a97bc","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":99,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"0bd0bf8b-a79f-4a6d-a9aa-caaad43d2dc2","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":99,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"9fbf68c7-b510-44c3-979d-932fef17a6ee","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":99,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"e03c8cca-468b-44ee-9b0b-b7891b053661","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":99,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"e3fe0bc9-9b35-4c06-8927-678995bc17a3","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":99,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"f4066052-0fda-4ef0-9eb3-4c246ebe3a0a","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":99,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"9dc1ca50-f0a6-492f-90ee-41f9c3dc28f3","block_type":"box","text":"Restricted Securities.","page_number":99,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"de26648a-ad10-40d0-9757-865f478dabfc","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":99,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"13aa8062-657e-43a1-bff3-3fa55468c4d4","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":99,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"f03a764b-c349-4805-9f43-d7fd94bfe224","block_type":"box","text":"II-70","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4f78007d-384a-428c-9741-9579dc6e9578","block_type":"box","text":"NM0926U-5975843-99/228","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1d845d75-fc3c-4f00-8be4-e96dac1a330a","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":100,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"7763f400-1d3f-42ad-8932-0f4890aa0199","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":100,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"fd676bb0-5fb4-4c8b-ae52-fd1c48f4efb7","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":100,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"61e9753f-14e1-4e0d-8507-7d1bdab32fac","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":100,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"83bc5265-5722-4015-b457-1ac5d1d8db81","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":100,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"2c423907-7f1b-4cfe-9a01-c6c2ad6e0654","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":100,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"25a20738-511d-45f5-81d1-4479de4a6a13","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":100,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"aa0468b5-80fd-42e5-9be9-4297475e9b24","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":100,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"5e64307e-504a-4d7d-9f34-12ce1089be08","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":100,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"52e59a6f-cab2-43f1-acc7-39f5c8b24206","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":100,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"67997e45-5519-4745-a16e-252f1a9139b4","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":100,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"39de3f77-28da-43a5-8689-c510a79d9e9e","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":100,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"0c17a07c-3f4a-49f9-ae03-70c6086631b7","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":100,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"fab4ff68-9dee-4902-8fa5-78a281a5ca5b","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":100,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"0b772cee-ce08-4993-87d9-4a0a72ef073c","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":100,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"5f0b0a69-5016-4400-9879-3ea8e1d7f2b5","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":100,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"645a3462-ca87-44ef-84ed-200cb5e81811","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":100,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"bfa9e911-cda5-453b-b449-2d8af59be10a","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":100,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"a94ccaca-f807-46e4-b39a-d56459ac6907","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":100,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"bea33d09-51ae-432f-ae8f-3059636b6388","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":100,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"621cd3ef-08ff-4fdb-894f-234fefe93c3d","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":100,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"c301cebe-da45-435b-87b5-d832a479f64e","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":100,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"910e08c1-3cc9-406a-8641-b8fdc4fddf19","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":100,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"d29688d3-251b-4bd7-ba31-a33364df57a3","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":100,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"86114f87-ce39-444d-8297-61e23ada4808","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":100,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"35167c69-ad63-4fd1-86a9-6f06ce030e96","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":100,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"91d70573-6242-4d5e-afd4-f692dcdca89f","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":100,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"7a686e18-d3a2-422e-aba0-204086fc1289","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":100,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"ca2655ae-1571-4d5d-ae89-926cb18883b5","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":100,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"c3efae02-2c04-4d41-9d5f-50621f34a325","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":100,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"cf535a45-f39a-445f-b742-46126bc78c67","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":100,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"105e2bba-d3c6-4862-92e9-3f8d14377358","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":100,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"aaefd5b5-ea6b-498d-8a3b-f5f7582e91ac","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":100,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"2c83954c-3ce8-4670-ae4d-28d87c7335f7","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":100,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"91cb4232-91f9-4400-8d94-481d5a1ea681","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":100,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"39367637-2482-4819-9147-5012cafb2620","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":100,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"24b1e3f8-8d62-415e-a203-225540179dd9","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":100,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"9a24526a-30b2-4829-9f9c-4b30dd593a10","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":100,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"4f88d69f-a507-497a-9607-c37286d55617","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":100,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"ff818074-a3b5-4900-aad8-d3944edb6326","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":100,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"227d2d85-167e-4697-b6bb-939200ca9514","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":100,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"ccceeb49-84d8-4176-b026-d30e62715668","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":100,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"e3de0494-db8f-485a-a3a9-921401acc071","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":100,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"bd343fb1-4e1a-4f7e-b9b7-910f2c8f6826","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":100,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"d42ad61e-8258-4123-958c-767bb3fa07b0","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":100,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"82bf55b9-e34f-43ef-8aed-109e7dd6e77a","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":100,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"bc565ef4-f68f-4220-b0be-f6f54cca8f2d","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":100,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"519b1bf9-0d51-49a1-8c12-f640a3f3b6d5","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":100,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"c25a6344-aec6-4cb8-905a-29e1e925902b","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":100,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"c6cb4e1e-1f34-4cee-bb71-96b03da90fb5","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":100,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"8fc2b5c6-3070-43f7-af63-8d97c0c6b351","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":100,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"7c6d2b1c-7064-48fe-a623-936deb15b2f8","block_type":"box","text":"especially as that Fund grows in size.","page_number":100,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"3cc83dbf-6bc0-4e52-b422-2422096d4d35","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":100,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"f68589e0-d659-49e7-909d-2c5485ed23f8","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":100,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"ddd91d20-b574-4767-9924-eeef91197284","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":100,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"cc8353d0-e75d-4f71-960d-1fd002593b13","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":100,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"d8d2d3c5-018e-4025-a317-c43d3f9927c0","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":100,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"df69eb8c-e421-4013-ab0c-717cc8c87a52","block_type":"box","text":"II-71","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"99c7db81-367c-4419-89ed-5cf34556538c","block_type":"box","text":"NM0926U-5975843-100/228","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2b17ef7e-94ed-4d86-a3c4-ea9480a38f20","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":101,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"f35d987e-c3e0-4eab-b948-a51a3a562599","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":101,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"f2819e0f-1d8a-45e0-95d6-f552381d5b35","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":101,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"4fc0e60f-36f9-4bd8-a848-796672efa937","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":101,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"bfd1c9e0-0595-4f45-be53-7b5e9b380fdb","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":101,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"4a0e477a-aebf-4487-90dc-2b9c6f3c5893","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":101,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"9ebe11f1-e984-4338-8c00-1fce3a2414f3","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":101,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"9d286137-e420-4cac-ab13-d8f77c8043c6","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":101,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"9c7b6eff-f981-498e-ac11-9245cce01b2c","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":101,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"e4768bc2-4343-4e2d-b4b4-0e9c2d2c51e3","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":101,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"aa771fa0-2ccc-4de3-ac0d-d23a74255b21","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":101,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"87b329ac-0c07-47e9-b025-c3eefc734c6e","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":101,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"61be3037-19d2-405f-99df-1f9ccf5c4491","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":101,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"f9912f00-1867-46fa-9083-624fe51fbcf3","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":101,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"8f9e4bd3-6b23-4970-8367-709d3d3e6319","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":101,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"66fe989b-8de6-4475-8422-04b77dfc26ad","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":101,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"faae8b2e-4e9e-44c1-b90a-59c2f501aba3","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":101,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"6817f51d-1a78-466d-a02f-53ef5f039a6b","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":101,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"6e712182-2887-4c49-aef8-d1646e54fd4e","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":101,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"bd9ab720-ea55-4305-858e-ec9fc6aebfeb","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":101,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"da7da934-d082-4c87-aff1-4cb460b37a1c","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":101,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"ef46ec14-fccc-4531-9314-e254cbfd3373","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":101,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"ac3f95e0-45fe-4bd8-9ffb-24618a22fe2b","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":101,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"bfc1a048-9b7f-49af-911a-503071b440bd","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":101,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"e22f89f5-4ce3-4df5-84f3-f21b6daebe28","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":101,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"abb72b82-13fe-42a5-90a4-7fa40c80a759","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":101,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"a89751bf-0957-4f04-9434-882f78850a9b","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":101,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"6aaaa8c8-963a-4c85-8c85-698f2e55ebdd","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":101,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"048a6ddf-a382-4d22-a3f7-5d7256c584f8","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":101,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"39a3270e-ad54-4ec8-b794-ffd8f18ca9a0","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":101,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"a77bf4b3-c30e-4008-90a4-24c606bfb7fa","block_type":"box","text":"similar financing transactions (","page_number":101,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"c881ce9b-7c5b-485c-82a9-4cbd74defa19","block_type":"box","text":"e.g.","page_number":101,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"6985e48f-967a-442e-9a88-a47dd91d5cbf","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":101,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"86a3e70d-1ef8-4880-a6e1-76e952f2bed8","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":101,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"8d057466-4576-49dc-82b6-bfdb9b9aa8d9","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":101,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"78c9fbab-bb6a-42ed-ba8c-bcef634e3cc4","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":101,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"096dd254-5641-4505-9ad8-3016267f5dd2","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":101,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"d8ac2774-f94e-4835-ab0e-82f089d92a2a","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":101,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"08437038-e4a3-42de-9111-f5bd4dbdefce","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":101,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"95fdb76d-f90c-42a8-aeb8-f2e69ef3ca90","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":101,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"93b1ed75-b85d-448e-ae02-4f7951fc4e44","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":101,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"76ba90ca-7531-43d9-8a61-ad3d3d81a7e4","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":101,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"cb7a5cd1-0fa0-4a6d-be3c-657a6b17a04a","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":101,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"9a8dcee7-687f-4360-83ce-796a699f7772","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":101,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"572fa5d0-1659-4e97-b622-c83792e7f57a","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":101,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"ffbc4042-172f-43c4-9455-c7f61cf0a1d0","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":101,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"ba29deed-2b9d-4728-b3cc-f01b9851a92a","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":101,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"57e45034-c353-4da8-b9ad-2f5bcf577d92","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":101,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"c8ae8417-fd21-4978-9987-71410820a3b8","block_type":"box","text":"amounts to be received under such agreements.","page_number":101,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"65bb5b57-27aa-45c0-ad7d-e5fcd83ae5a1","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":101,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"b0ef94dc-7d88-4dc0-bbcc-91a9d6d3437d","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":101,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"75ee9545-e45b-4225-a766-68b4a7d9b0ff","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":101,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"76bb1cd0-3825-4608-9b93-f44a0f3dd83a","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":101,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"bf7a3ded-9d11-4a5a-8f29-2feb098d5bb2","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":101,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"2586f62c-7e4a-4a56-aabb-5a72a622e296","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":101,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"a15a5867-dc30-4310-a9ef-ada415e19b12","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":101,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"ba4536e0-5ccf-4683-a968-4ebd3813af4e","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":101,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"ab044daa-e65a-420f-a5f0-d2f192d045dd","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":101,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"dde9889b-aa54-4f87-b467-b0cb16b3f4ec","block_type":"box","text":"II-72","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"67cfa7c8-7064-4379-b102-7db60f875a55","block_type":"box","text":"NM0926U-5975843-101/228","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"939b4161-e023-4042-a9c0-dcb9b2995784","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":102,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"19b316eb-975c-42d8-b374-f1b9c2e9503a","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":102,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"3638fad0-a403-4460-813a-d2865038178b","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":102,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"4077febc-d364-4ac8-935e-8645a9bb3d09","block_type":"box","text":"Rule 144A Securities.","page_number":102,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"9ee36aa1-bb15-404b-bff3-53cab609c6ed","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":102,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"06a6b587-d6cb-4bbe-b33c-81d0ecb4e135","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":102,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"ad36d1b6-0361-4b63-999e-bac226e2ffab","block_type":"box","text":"Securities Lending.","page_number":102,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"be36cdc8-2b54-4e29-b9fa-36158b62410e","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":102,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"8313d0b9-2af9-42d3-bca3-9a2b79140e5e","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":102,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"bb3ed3e9-68d9-4a3a-ad3b-e89b2d8afd61","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":102,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"cc23a6ef-6263-4442-8881-6369631d3709","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":102,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"7cda6e3b-3a83-4c56-883f-ade1b28be25e","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":102,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"fa64876e-7d04-4057-800a-b3b0ef7deb9b","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":102,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"37f7da8d-d094-48af-88e2-c0cc9d9a4e5c","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":102,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"0f4b701e-0fd4-4708-9859-c5b42528d23a","block_type":"box","text":"the securities were not on loan.","page_number":102,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"2a1b9211-2651-47a3-8f8f-ee0621e5a56d","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":102,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"6f4f2823-213e-4cad-bb9a-e88a57bd33fd","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":102,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"15912523-69e6-49c8-b91f-26e08e97441b","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":102,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"695da075-fe39-42ad-a93e-cd0cc05c45d5","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":102,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"2d206da7-47fb-4e2e-a491-c4c6c43b41ff","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":102,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"4042ece8-6f3e-4d0b-a97f-6bac2fbbf3a0","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":102,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"88e1aee1-d428-4d68-8912-6dbaac99d604","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":102,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"3b378d67-fd33-415b-9939-e36b85364ca9","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":102,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"a31db3b9-43c2-4b20-ab19-60c914382638","block_type":"box","text":"i.e.","page_number":102,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"0993e373-ee2c-4c47-9c9c-341f1beafe0e","block_type":"box","text":", the risk of losses resulting","page_number":102,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"e4f9d355-618f-45fc-af44-29765eae6e84","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":102,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"3a6620e2-8db4-4c6d-9e7f-d91444aa54be","block_type":"box","text":"i.e.","page_number":102,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"7f6c71a9-9198-427f-9139-72ba5f8b07a7","block_type":"box","text":", the risk of a mismatch between the return","page_number":102,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"11974f20-2660-46e1-9afd-bb45f8faf20b","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":102,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"e0ddd954-8370-416a-adb1-e81266ab1968","block_type":"box","text":"i.e.","page_number":102,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"16ce6636-90b0-42b9-8ccd-2e3bd9f030e1","block_type":"box","text":",","page_number":102,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"908c8ab6-a02d-47ca-b7d9-f1f6fd125037","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":102,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"ca8daafe-f16b-4325-933f-8169238f0807","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":102,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"e72ef743-2dc2-4082-a67c-9ef9619211b2","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":102,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"46a2b5bc-cc0d-403f-84b6-46d0684d94c2","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":102,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"8b00d458-c6ad-4047-b6dd-d734f2ee5d0e","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":102,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"d8230be2-246d-4e89-ae73-7cd77fccbfa0","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":102,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"d5afd671-ef49-431d-ba29-46bb15ee539b","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":102,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"1254b739-8a27-4aba-8dfb-fb83ec9d9e2a","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":102,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"5af8d3ff-cb11-4259-a2a4-8089fda1ceb7","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":102,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"8ffc9c9f-8d26-4bc0-8c5e-a654ddc733f4","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":102,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"5bc51f80-45b5-470d-935c-fc049d4d3404","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":102,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"3c397ecb-e2d5-4377-a634-ad2c210ef434","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":102,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"15cfaefc-1ad1-4538-9b6b-540e2e4817ed","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":102,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"3b93a69a-bfb5-4d79-a541-cb5bf4c9c161","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":102,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"e67f070d-3494-4b22-843e-0ada755270bd","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":102,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"6cbeefee-0690-426b-af0a-24a62ad189f5","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":102,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"5720c90a-4321-4e7b-a50d-7a2af8beb6de","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":102,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"7dce0a1b-2176-492c-8dfb-b86d4c546e17","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":102,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"ca685690-07de-4a72-b4c6-15f36d7d9738","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":102,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"c4a82303-c80e-4731-9309-d4f18c118a60","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":102,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"c3c082c3-7648-4720-8d8d-f4207f139b5c","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":102,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"88ea690c-6f6a-4dde-bd40-850014a749a7","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":102,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"414ab01b-3bcc-418a-8f00-e49360c1c7ec","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":102,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"44d0ff76-6ea9-4181-aaba-2807b7b33a42","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":102,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"b604fd82-4113-46a9-87d5-8829ff97c42d","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":102,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"2a4a6f4d-1ee0-4446-a2fd-15f74a89c5c4","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":102,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"6fe1fd32-6232-4f95-8bfc-f95237a47030","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":102,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"6229295d-7a15-4a79-b20f-e3531fef5461","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":102,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"e0987e71-16a1-4fa5-ba89-26bb03036268","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":102,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"0025f4f3-05e1-4a1b-8c57-3216205bc385","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":102,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"00a3329f-4d93-4ed1-8de3-580cec1256b9","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":102,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"04cf08e9-7192-4553-bad9-ec8018973766","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":102,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"e645546a-3f95-4573-8b55-ceb63fab6a65","block_type":"box","text":"II-73","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"822bbe5c-8584-424f-8c4e-626fb4049c6a","block_type":"box","text":"NM0926U-5975843-102/228","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"982f61c2-60f2-447b-a17f-0098d1b3007f","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":103,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"7debb40d-ed03-47ff-90c6-cd8fac9dc5e1","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":103,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"0be3027e-89c3-45e8-8778-3f7b80415c46","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":103,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"b3174c60-a572-4384-8a76-674fdbd15c88","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":103,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"22849af0-08ef-4b08-b0b2-f04b9da1e93e","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":103,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"244e6671-a749-495c-84e2-2a56c268e718","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":103,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"8f498cad-ad34-4c45-b8c4-ad74a5191ae4","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":103,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"7c09236d-44d3-413c-ab83-a4931cd78a5f","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":103,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"08f05375-c5c2-4251-85a3-7b6d57fd131b","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":103,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"0ab6908e-250b-4636-87ee-6295df7b9a28","block_type":"box","text":"the current expected compliance date.","page_number":103,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"062d97e1-b0ce-4688-97a4-bbac307a7f52","block_type":"box","text":"Short Sales.","page_number":103,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"d03dcd37-29e9-4037-9ec8-ecd9990533c8","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":103,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"ef9cbb1a-0456-46a8-b0f2-98ca7a57ef3a","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":103,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"d89141f1-6490-4397-a6ae-2903d5098c30","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":103,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"c9793362-4ba3-45ee-ab1d-84dbbe0c7f18","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":103,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"fcb67e3e-f57e-4216-962b-7877e9117704","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":103,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"5a16cb08-44e3-4bd7-bb68-61aa03222d59","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":103,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"f8ea5ea3-2879-4c8d-aea6-60c04fdd4a6e","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":103,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"5d3fcae9-a212-4af3-bd52-edc0f5ebfcb0","block_type":"box","text":"securities to the lender of the securities.","page_number":103,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"24b3bb4d-8384-42de-960f-42fddfb40853","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":103,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"faa5ba77-67a6-4325-b3c8-70ef2a43ce2e","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":103,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"f148b64f-8652-4277-be92-4137a9f7a31a","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":103,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"7ddc4274-7c70-4538-ab2e-07899e92966d","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":103,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"5d59d335-a083-487d-acf5-8f7040febd83","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":103,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"b613c107-d8e4-437e-a489-706b240f626c","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":103,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"656fbfe8-99e1-41a2-95f8-86090484eaaf","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":103,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"55bd2abc-698b-47e9-86f2-e3f63a346f95","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":103,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"4a108ca4-2892-4841-9aa3-99c5a83c036c","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":103,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"e29831f0-6501-4bf0-90a5-7a13e6e11aa7","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":103,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"243e8724-ca72-4613-bc0c-85a4bccb98dd","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":103,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"1b11bde0-6206-4ec4-863f-4eed4ae7cd61","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":103,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"7cbb92c1-2ac5-47d3-914b-4cff4dad5eed","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":103,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"044d70df-12d2-43f7-bf6f-4881e43da439","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":103,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"0582fb69-a1ec-4155-ad40-8bd7f49e5603","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":103,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"1c1414bb-2586-43ea-a0b9-5296f7be28cf","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":103,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"1648a03d-95ad-4344-aff5-b76cf045a7f8","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":103,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"29b02833-f781-41fb-99b0-528f6b4962c6","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":103,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"1e5e6762-11b3-467d-a7eb-716028af2563","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":103,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"28c19e19-09cc-44b9-b076-1c1a4457125b","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":103,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"5a7c6dfe-b4d7-4566-b09a-5d2e6ce0b04c","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":103,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"d454fc30-6a2f-4c10-a21c-d3b1852b972f","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":103,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"885c9912-ad2f-43b9-9e6d-8662d954fbf5","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":103,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"96072926-768d-4f58-ab89-521693e4e833","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":103,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"98373de2-12aa-4671-a4a7-0b0acf9786ea","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":103,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"628386c1-e1cc-4d4a-bd79-6648cae20ef1","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":103,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"59139ebd-5427-46c1-821e-6b4b8158d28e","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":103,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"d6dac571-8da7-46a5-82f2-301f56341e7d","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":103,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"ca288010-ccc9-4511-a433-e5a8934af7f3","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":103,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"22de0cb6-04c0-4292-84d0-13118edcfc3b","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":103,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"49a9ddf1-e80b-4279-87e9-d30edbec8e16","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":103,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"8b4fc39a-c662-429d-9551-6df28fd9bd74","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":103,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"58259d8f-dd85-4ba0-a811-4f39a7cb6e8b","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":103,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"69bd79e9-b6b2-4d3f-9c3c-9d87605f6636","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":103,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"3ab286af-47c2-441d-b9b5-71f8ad0da6b5","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":103,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"9501adea-204a-4af0-a689-3ce5c0ff044c","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":103,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"2983c29f-462e-457f-9d4b-6b286785c09d","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":103,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"d0f29598-eff0-4946-9db6-4aea7f1afee3","block_type":"box","text":"II-74","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de833404-5f9c-4d69-baa7-e482047c8deb","block_type":"box","text":"NM0926U-5975843-103/228","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"278511b0-d583-486a-bd6b-5c5fad9938a0","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":104,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"e0754e26-effb-40d1-a143-39318dbe2612","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":104,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"20aec9bc-f950-469e-8756-ae02ad3f76d9","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":104,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"36eb5bb8-7b97-4e7b-ba10-90cd0eb2c829","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":104,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"9743b772-170b-4fa8-b60b-914bfa3f5ec2","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":104,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"220d2b50-a823-4327-8439-84eb81d0b304","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":104,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"0a3387fc-7ce9-40b0-82e6-d6b420083d77","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":104,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"792a2884-09cb-480f-bd4d-05151ed2c3be","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":104,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"4d147e90-072f-4a45-bc7e-a482e7e05070","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":104,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"43a7c3c5-6b34-4b9f-a9ec-02b68aac24e8","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":104,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"6c233424-0e96-40c9-afe0-fe7308d6fb33","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":104,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"383b1d0b-c80f-47eb-85f6-b526512d767c","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":104,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"46b81e4a-c203-4b60-903b-6ca2bc927c95","block_type":"box","text":"Standby Commitment Agreements.","page_number":104,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"06179040-a794-4411-bda2-d62a08ec761c","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":104,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"b56eb17f-df7c-4ba1-9b4e-5304615e5f89","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":104,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"8547e9d8-3559-42fd-8eb9-35c09c7f267d","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":104,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"80a8e388-9074-40be-8e2e-46e683ec841d","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":104,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"f42563d1-a838-4d48-b29f-de8ecbb49367","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":104,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"17cf1dc5-1b8a-4491-a96d-38b550d77bbc","block_type":"box","text":"advantageous to the Fund.","page_number":104,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"905ac73a-aa5d-4f75-99f0-938bc37c5394","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":104,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"c9c07a1a-c98f-47fb-a7ad-f3cc8d1d7be5","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":104,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"f5199a1a-efd5-4851-b100-b8c5d221842f","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":104,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"e4d75f84-3cf8-4271-b292-05f7f0f466e0","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":104,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"68b0b0b7-7d75-4cac-8dfb-54330fa7ae40","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":104,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"9c66d0b2-655c-4c96-aa73-1706e8530838","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":104,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"4c57587a-3a75-4437-b9cb-8e5624033392","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":104,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"bc572779-f42e-4078-82ca-abef3174bc91","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":104,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"5ee9eaa9-d91c-4953-8208-26345ed226fe","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":104,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"90c8e4b6-fea6-4705-acba-456c56ef1d46","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":104,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"cb8cbedb-60c8-411f-adae-8373d99c6ccd","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":104,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"6c5351cd-29c6-4d18-abd0-5c8923d58be3","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":104,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"10cd70e8-0302-4cbe-987d-2df6107bfc22","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":104,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"8d70a26d-42b5-49c3-b85f-aa693222a160","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":104,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"8ac1df9a-b747-4299-8664-44e1f2144f2e","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":104,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"f7ecbd53-6103-4eff-b969-e2ccb06b739b","block_type":"box","text":"Stripped Securities.","page_number":104,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"fbe847b0-7c2c-46c5-b74a-dd92d5ac6705","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":104,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"55c2b09a-ebe1-4941-ac23-59594985bb99","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":104,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"09d1954e-c933-4ee6-9e8b-b73a5a8f4030","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":104,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"339d54bd-9384-454e-b724-788319e911e8","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":104,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"7f0f17b6-b176-4e24-ba4f-838e31d2fb9c","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":104,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"be4ce742-8a6e-4bde-9511-0766e41e49ea","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":104,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"4a06e6c5-478e-4320-94a1-96f9361f2490","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":104,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"9ed137a5-b86f-4cc8-aeab-39f786ddc1ae","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":104,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"a826b796-2d36-4477-b8a4-89bc609e7fec","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":104,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"f9521f3e-ef52-45db-a35f-a04f3adcf763","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":104,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"36c2a9be-9748-4f5d-8d34-7507064b8f94","block_type":"box","text":"Structured Notes.","page_number":104,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"880817b4-edb7-4c32-92d1-a432cb8b97d2","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":104,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"1e943381-c304-43df-baa8-bb8aecbe55a3","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":104,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"d922633a-e24a-4cb5-acd6-273df757af8b","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":104,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"8a3496fe-4085-4f00-a7ce-139c0388364e","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":104,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"6d9f6a2e-e7c7-40bf-a246-c4564e1d5ae1","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":104,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"cf5a771a-0c81-4067-af05-3bda715a069e","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":104,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"949bd0b3-07f4-4672-9db6-11ac661aec99","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":104,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"b04cdc55-5811-4995-a58e-792cd9b6f9d3","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":104,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"ac925cc2-11b1-4c50-8fc0-6985701d066c","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":104,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"0f859026-0ac9-4518-813f-5731883447a8","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":104,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"bbd9dc21-2e0a-4f9d-a65e-699b2aaf192e","block_type":"box","text":"II-75","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8e29775c-42b1-41f7-9c85-36bf50c3ead1","block_type":"box","text":"NM0926U-5975843-104/228","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"93c8574d-d368-487d-aed1-c1e25b1debc4","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":105,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"e152e3b9-9abb-4817-8d21-23c2cdb1341d","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":105,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"5752bda5-b3a8-46b1-b63c-294e5f45051e","block_type":"box","text":"the risk of loss.","page_number":105,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"72cd2c92-f252-4f9a-8a52-b44d87b3156d","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":105,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"0fd360bb-24f9-4cfa-baf9-177e98fbc392","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":105,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"7fd3b55b-f797-49c9-91e5-5683c9c5270a","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":105,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"24dd86bb-2ae0-48fc-9706-67517206d949","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":105,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"fff86ec9-70f0-43a9-ac3b-1f34f3d275ee","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":105,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"e79c4c43-ae8c-405a-a2b2-5fe33fbab888","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":105,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"6aa42eb7-e31c-4ebf-8bf9-989a8742931c","block_type":"box","text":"Taxability Risk.","page_number":105,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"fe61259a-8559-4e18-b785-5ff8bc512752","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":105,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"ab0aa8ae-ca8b-471a-b3c5-69bb93e292a6","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":105,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"dee8e64d-316a-4708-8533-cf7c459a7c9c","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":105,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"f36e92d1-4e34-4cfd-b3a3-b9fa04e16204","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":105,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"bb05eecd-f5a4-44b9-b974-26e2f6bdb556","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":105,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"a2b8d27b-a3a9-4d44-b34f-4f46270b64a2","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":105,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"e3478bd8-7919-4025-97cc-c4e089d7270f","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":105,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"d1f9724c-9a64-4ae7-95c3-065d660db2a4","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":105,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"452b2c56-5e67-4853-b561-0b0a50fae7e8","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":105,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"2a1557fb-c9c7-4cbc-93b6-013103fb14a0","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":105,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"a7f96c79-9a3e-401a-baf6-b31b94b8d94b","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":105,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"a557593a-46ad-4edc-bc36-f4000224bfc1","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":105,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"60fd0e0d-780c-4a74-a49e-0062e6882fee","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":105,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"c1e1a5dc-7e83-4616-a945-2657e6193ca4","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":105,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"394b80e4-6b24-4637-a174-41838d189613","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":105,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"bcde60d7-5834-4d28-bdb8-63d0aca06cfe","block_type":"box","text":"the value of an investment in the Fund.","page_number":105,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"559726e5-8258-4c99-98b8-2bdb341db761","block_type":"box","text":"Temporary Defensive Measures.","page_number":105,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"12684f79-8110-47b5-8843-31b9e8b72a7f","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":105,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"e8bb9bad-bc70-47d0-839d-f60a2b591d15","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":105,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"d66a5b2e-7813-4634-87b7-14f0c213e331","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":105,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"f2feee52-39d7-4a9a-91a2-9a8d9b9cc12b","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":105,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"95cca83c-4d15-40c4-ba3d-9aa806874042","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":105,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"ecdea66d-d3b3-46ca-babb-a372bc26e569","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":105,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"8fa9f083-f902-4871-916e-45ba82bd4252","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":105,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"0f0f4b45-e114-4643-b5b5-a0034f090e14","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":105,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"0d63be23-bc0c-467b-8b75-4b5daaea861c","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":105,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"bd26ddba-660e-4167-8a16-741edcc0640c","block_type":"box","text":"its investment objective.","page_number":105,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"0f67983f-1111-4bb0-b466-5ee960e0f5c7","block_type":"box","text":"U.S. Government Obligations.","page_number":105,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"56071a53-a4c9-4f62-bc74-603e8da80945","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":105,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"cf8e8a1e-5aa1-4317-adc6-e347f77ed0b2","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":105,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"6530596c-8c99-4b60-a04d-0a6a786c60e9","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":105,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"19dbdb48-12f6-481e-b4f5-192cef588432","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":105,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"0018ce15-302f-43ba-a313-c28481215bfb","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":105,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"33f99ebb-1d73-449d-80d3-26f4aef6944f","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":105,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"5464ffbf-aea5-4307-92db-8a6dcf336bb5","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":105,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"6f5afb8b-916f-4e49-994a-4f1a80f1b42f","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":105,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"11f68d15-6aae-4675-8c81-9c74da0449e8","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":105,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"ff19e5c0-3d7d-4c78-8f20-fc9566d23128","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":105,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"7ddbb344-eb89-447e-9c27-674ffa1384fa","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":105,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"9b9d900a-e888-4a8f-b461-f2bb0f9f9998","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":105,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"8abd4d03-1961-4564-bc4d-86bf9cf27d62","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":105,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"527f69d9-468f-4988-9781-ba11215b7420","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":105,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"0fb8c974-7080-4e15-b801-c41d776a50df","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":105,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"fbb9664b-96aa-4e1b-bf12-57365bf8a7bd","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":105,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"80754edd-7fb2-427f-9305-02f2ea4a0108","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":105,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"e82c1747-3ad3-45ef-92ad-71fd46b85e2c","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":105,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"9ad7b943-79b4-4104-992e-cdb176490887","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":105,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"78e42ff2-cc40-4dc0-b109-afda4c6cb2ec","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":105,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"903f551e-68be-465a-ab3b-5a89b59d6e4b","block_type":"box","text":"II-76","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7d5689de-ebb7-4089-b777-f1d6c79fcf9c","block_type":"box","text":"NM0926U-5975843-105/228","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7752e0b6-e16d-4c14-97a2-d98d895c185e","block_type":"box","text":"U.S. Treasury Obligations.","page_number":106,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"7b7c3ebe-ca1e-4db0-8de9-637ae6e8d1fa","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":106,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"f5fc7a48-7d1d-4cd4-9806-32afee4884d0","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":106,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"0ba8ec02-1634-4fe7-b914-1c6905b19383","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":106,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"8b261e34-e41f-4ea7-be72-81635cf57ff9","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":106,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"0288fcb6-0eae-44f4-896d-76f10ee75910","block_type":"box","text":"do so.","page_number":106,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"7ed72349-7dd9-4609-a0ba-918283c14d8d","block_type":"box","text":"U.S. Treasury Rolls","page_number":106,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"e6921cf2-23b7-483c-8be9-f39c0272ead2","block_type":"box","text":".","page_number":106,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"747f9c3a-a8d7-4dc3-82a3-440961f0c39d","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":106,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"071c0188-8f5d-4ef3-8da4-32f7a8ed187e","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":106,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"fa404ecb-8631-465a-8813-e7d4922678ef","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":106,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"53a7e890-75a0-4486-b334-fc0e80545e97","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":106,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"c7f2e344-1c52-4f92-b44d-8f50ef06616d","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":106,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"1792f9b5-a75f-4241-970d-1512dbda63d3","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":106,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"43b39e3c-8ea5-4f65-9454-279a5329e167","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":106,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"98c3e247-6698-42df-ae06-13d5987b5066","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":106,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"8653122a-a56e-4a56-a87b-dc5251903762","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":106,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"32063340-4dc0-4dcc-9e2b-5864aad717a5","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":106,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"34dad172-47c5-4158-bd49-d2dbcbefbe45","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":106,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"93553383-ca06-4de2-a581-96901d751bf1","block_type":"box","text":"Utility Industries.","page_number":106,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"a5b8b5c4-b8d3-4dcf-b29c-203f17aecd95","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":106,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"45a9b12a-fbea-46b4-9bfc-7067a93d9784","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":106,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"5097238d-fea5-440e-a604-c853c636da2f","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":106,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"6a90037f-0170-4c55-9235-e807ebf2de2d","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":106,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"665dd721-0ecc-4f6e-9577-6c8f52cc8b8d","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":106,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"0e278695-381e-473f-856d-f853f6806ebc","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":106,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"1cdba676-9d20-438a-b427-8f2078e98fb0","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":106,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"7c610dde-dad1-449c-a1b3-c2ffc811ca73","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":106,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"9e45a512-a611-4d8a-8a33-2ff2c29eb78d","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":106,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"24655827-6408-4760-b261-acbccf7600d5","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":106,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"8a13ebd0-cef8-4012-94a5-b60aae144462","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":106,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"ef680404-74d1-4ea3-94ce-2a9f307cc6c2","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":106,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"3c03cb05-c85e-4d1f-8051-10f1445b006f","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":106,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"ba541de7-6c8e-4bd9-9b00-2816d9c0d5fc","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":106,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"da0c7dea-45c9-4b8d-b932-1c0fc77f9d79","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":106,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"70ce624e-ab64-4171-84d7-2e43b88d1088","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":106,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"316efe5f-d1ba-4150-96a7-f55d3d455ac0","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":106,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"ea65781f-d518-4570-b4a1-c1b6c9449153","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":106,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"5d046fe1-5079-42cd-8c27-8bf9e216c6a7","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":106,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"a3f11252-502d-44a6-a04f-86e279c19ee1","block_type":"box","text":"utility.","page_number":106,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"30857451-9a22-489d-b060-0276cbaedf47","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":106,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"d2e0696a-7aef-4329-8f87-d5b09f2a2c14","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":106,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"7211752e-4589-4690-8694-65ff09a24b12","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":106,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"528a358b-b1dc-434c-a2e1-f392eb56fe6c","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":106,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"6c4f5dd8-bd4b-47e4-9af8-31c13b12f3e4","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":106,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"371a35e3-707d-4ec0-a272-e8f3983821a1","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":106,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"d001f24f-7cab-4068-9816-bee6e1c47bc8","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":106,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"3d33fcad-69c9-4b61-b4be-4670f359c3cd","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":106,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"4a242243-642d-4f4b-a776-7e2798c8eac7","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":106,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"7f4e8e3a-5296-4fa4-8237-5998974627fe","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":106,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"e0676f28-e6af-4f84-9266-b3d3533f2a36","block_type":"box","text":"continue in the future.","page_number":106,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"62f959de-429e-4fbe-8dca-44990b272a5d","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":106,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"b613d696-1312-4443-9aba-88cea4bede29","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":106,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"f934be1d-2492-4203-b228-5c65b4cb3274","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":106,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"8787332e-559f-4615-ad2f-991f18743175","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":106,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"4c0c46fb-d13e-4f98-ac70-c2436d868b1a","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":106,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"b69c1d1d-77ea-4920-be40-0ea522a8f0b7","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":106,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"3996afe0-b2ce-43ed-922b-794b8cab82e4","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":106,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"7b1f4d47-bfe3-4ecd-a614-2e8ca6b87bdb","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":106,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"fe0eee9e-999e-4c71-8c8b-24d73dbf3c07","block_type":"box","text":"II-77","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"12c66b3e-ac1e-4e05-8adc-8f38435747ab","block_type":"box","text":"NM0926U-5975843-106/228","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e6048c26-6bdf-462d-81a5-fa12646cf05b","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":107,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"900f527e-8588-48a8-a399-bf3fc35908a3","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":107,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"33464189-9f16-4933-a190-4a2ed8cdab70","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":107,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"f3bb9bab-92b8-4e36-b5de-224afab71230","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":107,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"179db1fb-684d-46fe-bfab-89a393963e71","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":107,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"0ffa6879-cb22-4139-b066-a97e9119889d","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":107,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"9646b06c-77b8-4cda-8e20-fe14ca41c360","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":107,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"087c1da4-714d-4ef7-8937-2a0baa98e579","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":107,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"f33651b9-4492-441d-928c-40aad99580e3","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":107,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"15c08b15-ee58-417f-955b-285e3f15ae24","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":107,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"fe686c14-4711-4fd6-9c46-56978d069ec0","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":107,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"db04d407-34c9-40f7-aedc-5d27b1ce1215","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":107,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"db3a925f-dfda-4535-8b9f-a504a965a306","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":107,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"40cdc7c8-78f3-4f32-91ff-4232ce1aa214","block_type":"box","text":"ways different from regulation in the United States.","page_number":107,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"cff0addd-f7ae-4a85-a44b-cc819376638e","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":107,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"b0d5e6cb-9b64-49ee-9ffb-808bb242c711","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":107,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"dd9baf95-e89f-463b-9d12-cd64b359b475","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":107,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"f80999ec-4d05-4077-be9c-3b6d1aa8dbb8","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":107,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"5a0e098e-479c-4ff8-8862-11a6c898a89b","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":107,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"bc6623d4-568c-42d8-8a1a-c4b5ace9c5c7","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":107,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"c4614f10-d539-4e14-a438-4d8f17020055","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":107,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"1bdadc81-3a4f-407b-bc96-b854caa221ae","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":107,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"94a1263e-0ae8-4bc5-9226-341b3e125a57","block_type":"box","text":"increase.","page_number":107,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"644e6d34-a0c1-40c1-9541-b9314449a232","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":107,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"8f01eda2-cb52-4e06-9d39-a69f7864e9ff","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":107,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"f761b88a-74e1-4487-8bc7-fded3d18aab1","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":107,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"50c18684-cee1-4972-8ba5-c852fbc33914","block_type":"box","text":"Electric.","page_number":107,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"de7d6209-9bb7-4c5b-a3e1-0871376a398b","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":107,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"c9339890-05bc-4236-9cf8-149ae0387ce3","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":107,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"5fcb21fd-8300-4aac-bbde-8a365d2e7a6a","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":107,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"af1912de-1038-4da6-881f-9a240b61a563","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":107,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"adaebc88-665d-49d7-bc0a-462f56c0a720","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":107,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"45509d87-7f25-45f6-aee5-d66f80641fc1","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":107,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"464f8f19-ac47-4427-a6cf-5e96e6edcd2b","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":107,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"6bc38409-a97e-4a22-bdfd-033fec8968f2","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":107,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"f0754879-4f94-4dc9-aaf5-f75e5e3af776","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":107,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"0ccafe65-7e9d-485e-bad6-12a65d7063ec","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":107,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"7b357e90-0b38-47fd-8470-edc1fac3797b","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":107,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"4d56697e-c03d-4376-9674-6e5423d38409","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":107,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"a3e15bf2-9e6e-4dc3-b08c-f63b657bd6de","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":107,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"35affdfc-a4fe-4e24-b5bb-b84ce72052bb","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":107,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"fa6ce08c-bae2-4ad5-aec5-53a3b50527f4","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":107,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"b3ee1bb4-a402-4049-ba5a-001429da627f","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":107,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"02432543-4b2a-4af4-b22a-700a022ffaba","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":107,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"0d0831af-d8ca-4dd6-a2e0-49fd26ba8763","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":107,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"a2a901fb-156b-4e65-ad97-e1332cfd8993","block_type":"box","text":"and for decommissioning such plants.","page_number":107,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"77ea7d08-a9f1-4534-b62d-d02cdf90fc3c","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":107,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"fdd0878e-3a3c-4fd2-ab5c-c0154d509b61","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":107,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"4aa1b246-5816-4d9e-b53e-b508fb2af1be","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":107,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"0f7597dd-f308-41bf-b0d8-dac246527962","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":107,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"acf15684-2e99-4b58-95a0-e10fec7f3bbf","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":107,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"b0cfa6f1-0953-49ea-bd44-640f2a034701","block_type":"box","text":"greater predictability of cash flow.","page_number":107,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"f08f41f5-cf0a-48d6-baa9-e846927e3a96","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":107,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"c4aac31f-a7fe-477d-ba55-cfd0f22ac38d","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":107,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"3580f563-a079-4572-bb35-1361b18b7fd5","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":107,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"3c693e1a-e890-4df2-8ffc-d82d1861e615","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":107,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"66c48047-7a58-4bb6-bde5-56c40b2c4cd1","block_type":"box","text":"II-78","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9a1767d8-4035-41d5-97e7-056546e18e1d","block_type":"box","text":"NM0926U-5975843-107/228","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1ef05f29-28e7-4832-b65b-514a33abe485","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":108,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"fd4843c3-54bb-4d41-9074-e280d3bc6bae","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":108,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"b0038237-eec3-457b-88d2-a995cb6d843a","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":108,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"b6069bb7-5423-4ae8-82ec-2ef1616ee543","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":108,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"70a4d595-aaf6-4a21-babf-31a1799dd644","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":108,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"195ab37f-e0c3-4a5c-9c0a-514286838a2e","block_type":"box","text":"Telecommunications.","page_number":108,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"724d7858-2ce0-4a90-bb51-11bbc0d9b929","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":108,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"fdf05f29-3e61-4ef6-8fa6-f423800cf391","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":108,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"a783f90d-c413-4be6-9ecb-d04f37b77555","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":108,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"e8a4ff4d-ccb4-4c16-89f3-dafed36113d0","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":108,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"a431a311-f8c1-45df-8aed-e6a1a572caa0","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":108,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"2482cb1d-da2a-48ed-9241-6a2efb714f15","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":108,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"904abac0-6c52-4dcf-8f24-12a7ccf0d934","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":108,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"aa8a4272-0999-489c-a7cd-540ae134230a","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":108,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"2a1d9958-2c41-460b-a993-2fef22dab75b","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":108,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"6a3a7c88-bfdd-47f7-9dbf-e635ea817dce","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":108,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"1ed4e067-31a4-44a1-a531-96c54c2290e4","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":108,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"6815bac3-df53-4a42-a087-9a6fabc642ab","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":108,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"268a93dc-2abc-46db-9bb4-b50daceee05a","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":108,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"59fcee26-94eb-448b-a857-d74ad74ced47","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":108,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"7a607d76-2f9c-41c9-a721-034c8ef7cdc5","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":108,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"7564c711-f7b1-42e0-9c2b-6a92c8c05e93","block_type":"box","text":"residential, corporate and governmental customers.","page_number":108,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"cfcdd7e9-f170-49de-b928-69ce1dafbdbb","block_type":"box","text":"Gas.","page_number":108,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"707ae847-3ff9-4039-bd53-7810c5cbd168","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":108,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"47757963-fe91-43b2-8d2f-9e2085f845dc","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":108,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"401557a1-3297-4fe7-8159-d79b60567246","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":108,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"7b125da5-e651-4e81-8d80-efcb09466357","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":108,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"c0cfa5ce-293b-4b41-a502-d934eb104299","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":108,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"acda7131-e5fc-49a1-a267-464530c3781b","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":108,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"12118318-37d6-4aef-a372-f4a37faa2cc4","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":108,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"3853928f-3cee-45de-8a88-dabf4046a10c","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":108,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"5319c83d-7a2a-414d-867c-02ed103a2251","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":108,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"ee1a1f8c-0ea2-48a4-a84f-58cc14840691","block_type":"box","text":"Water.","page_number":108,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"e895aefe-4470-4a12-86f8-9fce59d62b1b","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":108,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"561180cb-ecd7-4244-b072-be5f8020acb3","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":108,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"f4634de1-1bf6-41ed-b319-1670a1c503db","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":108,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"d3cce0b2-0d02-4cb2-bf80-cca470151bef","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":108,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"7ad09e15-d1a2-47a7-901c-c078861ee42d","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":108,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"a960d661-8540-4be7-ae34-d952d2cd5014","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":108,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"00e4a025-2624-4bd6-9022-6ed518cf2808","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":108,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"11dd7c28-1946-4fef-b96a-1744adf5488a","block_type":"box","text":"Utility Industries Generally.","page_number":108,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"b386bfaf-07f4-4189-bdf1-06fe9a9b1d87","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":108,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"36470466-4e0f-4fab-b3e3-604cec00839d","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":108,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"a71f4a74-2a89-457e-b602-d3d5cc70810e","block_type":"box","text":"not develop in the future.","page_number":108,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"18770f47-3236-4f08-99f5-48057cda1f70","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":108,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"030740d0-950e-4a1b-8f2e-44a51b17402e","block_type":"box","text":"A Fund may purchase or sell","page_number":108,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"f8352297-a316-4baf-9392-06717f33a48f","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":108,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"fb706946-461e-4e76-a692-80d57e3da04d","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":108,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"f446602a-7895-42fb-b37b-3bc0066c0053","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":108,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"676a3298-f95e-4b9f-804b-de804f11538d","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":108,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"07328bf6-c655-4e66-8938-3d78b0e272c3","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":108,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"cb0a8c58-42a3-4992-b9cb-129bb387597b","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":108,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"68a0d6db-6fcf-4a07-a68b-d2930f462199","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":108,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"ca586eb2-adad-4734-803b-be52618a683b","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":108,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"f9d32a79-99ea-4bf8-98a4-6d668c7aa318","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":108,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"bef50dd5-9e39-4cf4-a2a5-08c81a00c570","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":108,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"7e40ef92-4d58-4c23-bd4f-1322653f581c","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":108,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"372d9dbe-797b-4bac-b34d-650e197e3603","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":108,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"e33b3003-e5df-4094-872c-0f668dbae98b","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":108,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"a0fdba19-e641-4146-94ce-0598c10f7f5a","block_type":"box","text":"II-79","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2ebab7df-0d68-4567-9101-ff2d54dde449","block_type":"box","text":"NM0926U-5975843-108/228","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ab349412-6562-4b48-a697-1460c7c5708b","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":109,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"36b41c50-c684-4836-8def-4871da799782","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":109,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"6e49b2b4-d0f2-47cd-ba5f-b281ebee2f25","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":109,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"e59f2850-c4a4-4296-8cd8-73b2d4579d85","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":109,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"816d2da1-acba-47a1-84a7-f29832f3516b","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":109,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"59f05420-08a1-4463-b199-1f5eebc356b6","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":109,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"9480459a-460f-4de6-ab03-9b83b28591ff","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":109,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"a6e90dbd-b986-45c5-a43f-95156d6a0e2c","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":109,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"57a6fb1e-c822-40ce-aef0-104fe7ebb461","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":109,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"072a60b0-a208-4002-9995-b79e86f49590","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":109,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"9dc574e7-ce5a-4909-9ce7-614099271db6","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":109,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"d50316ac-e24f-466b-b720-d929a3d6d944","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":109,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"2de37cb1-ce1c-447c-83dc-8810fc0a0eff","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":109,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"945517f6-882b-4da2-ab93-3ae6fd5b8ba8","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":109,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"14b57996-1300-4961-9c17-f34d88b046fa","block_type":"box","text":"securities (","page_number":109,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"84faf6f6-d3f9-427e-9c4c-235d7b42d8e8","block_type":"box","text":"e.g.","page_number":109,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"4f4c9f8f-d35e-4194-94d4-8a9a20aa8cf9","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":109,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"5acbcf97-8b94-4b5f-abb1-b06e09eec363","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":109,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"156aa6a6-3338-4a00-8ba8-9bd631dce957","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":109,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"7ff181c5-e05f-4160-9a80-acdfa5eea093","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":109,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"d28143c0-d452-4082-abea-df7a6d64db9b","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":109,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"41ae83fc-f32f-4d9f-875f-0f01ab4e432b","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":109,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"c8283f78-d752-42dc-9fb1-968a5b3e75e7","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":109,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"26827766-fa6d-4d30-ba6c-24c66d85e142","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":109,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"d9ba9df0-07a4-435f-ab66-11b3d485246b","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":109,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"e0e8f639-8bf4-403d-a7dc-836d93893475","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":109,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"53c69ea8-0084-455c-b502-ba5d12c59b7b","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":109,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"b98060e4-9039-4f4d-84ae-b47fec4723fa","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":109,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"5eb2736b-c4b3-448e-9ac2-d3e81cf3b1d0","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":109,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"61a0885f-6c84-445e-9e46-4259037560b7","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":109,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"152c6d26-c1a0-4915-a2ed-dc5e3f540887","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":109,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"10f32320-cf43-4764-b5a7-8f2fe48094e6","block_type":"box","text":"Yields and Ratings.","page_number":109,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"3b0bd02b-3639-40e0-abc5-b2f5602aab3a","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":109,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"a335e499-cd3d-409e-ae29-f658281cf6f7","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":109,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"1127f26b-a666-4c4d-a6d5-17a0e26f7097","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":109,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"a4593e44-f780-4b57-ade2-6a5c0f6c669f","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":109,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"e8384d33-38de-4b37-ad0f-4d87fd4a1555","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":109,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"dd8edf89-2b0c-4b21-b546-96ed0cf3b9c9","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":109,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"17f7a2e3-8162-44af-b286-94b55ad74b53","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":109,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"ef66b7ad-1205-4124-95e7-97591f8837d1","block_type":"box","text":"continue to hold the security.","page_number":109,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"4861a0b5-8db1-48e8-99ed-94e6cf6b8d5b","block_type":"box","text":"Zero Coupon Securities.","page_number":109,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"b2c0bc05-c6c8-4738-bf06-69b102db4ea1","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":109,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"268b2f87-bfa5-4e06-ab6d-8b3bfbd1c6c9","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":109,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"b63c89f3-66e6-471b-97d2-3cd74e7a9e73","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":109,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"328ba5cc-b586-45f4-99e7-146b48aa1749","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":109,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"cd44923a-6f5b-4023-90d6-e1d96556bd40","block_type":"box","text":"security.","page_number":109,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"00c17894-3f27-44bd-93d7-8491c71f77b7","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":109,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"a507d228-6761-41ce-9d6d-196960f48e14","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":109,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"db8cc80f-ef47-447b-93f0-5c5664a08783","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":109,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"26bcae2c-d53a-4ae5-83b1-e7ddd0ce8673","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":109,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"889271df-ab71-48af-9db4-af50d0c0fe16","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":109,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"c655cb6f-5e14-417a-8570-97d315a45313","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":109,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"bc84cf59-3dd7-455c-93db-5f9903828ebf","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":109,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"1a641f39-f5ff-4086-b036-899cc62367da","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":109,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"59b820b4-7bc6-4c3f-8325-06b233f13e63","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":109,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"f2b20a57-359f-45fa-b72f-5643bc3f65eb","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":109,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"c07dff0f-aaf1-403a-b256-b86dc7028739","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":109,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"3c16ec1d-3fc2-4c31-992d-d4009b0750f9","block_type":"box","text":"II-80","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9de3e15b-19d7-445a-ae0d-bc883585cf99","block_type":"box","text":"NM0926U-5975843-109/228","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8377c9b8-9caf-41c1-b099-097e965230a3","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":110,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"5360b5b1-4c99-405e-88e9-60186502d1a7","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":110,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"933e1691-f827-4959-9fab-95ef4138a335","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":110,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"76c9a582-d0af-4b0f-a50e-1cd6da4e511a","block_type":"box","text":"intervals.","page_number":110,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"fb3e0501-d3f7-4763-80b8-863723d6ee62","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":110,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"9b396a6a-ace5-46a2-8404-906e32d2d663","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":110,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"7a4be690-7abe-471a-b1d4-849dd9c9c0ab","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":110,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"0d478a88-49d0-4147-b6d6-4c7d36087ce6","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":110,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"ab969a7f-1978-4f14-883c-f84fcd94667f","block_type":"box","text":"exposure to zero coupon securities.","page_number":110,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"5b26cee6-7049-4af6-997d-7d6ed43b0739","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":110,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"7b15d505-d931-4d0b-9c82-7b9f4e764267","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":110,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"3690584a-ce66-4ef0-9f8e-8adba50332b7","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":110,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"2a9aae79-6ca1-42ce-8dc9-044b650c46b6","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":110,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"2432bce2-c5b0-41d5-9187-a33d5518fe6c","block_type":"box","text":"Suitability. (All Funds)","page_number":110,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"d0d6870b-61e2-4067-8785-0eb1d0a840ab","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":110,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"2962d726-cf5b-4337-90c4-5ec7f50f69c8","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":110,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"2c3c4a9d-8ea0-470a-8a3d-fee4a742fd23","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":110,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"9fbdeb9f-ab23-4857-ab50-ecbba261d339","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":110,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"9c02336b-9762-4a4c-abdf-d5f65ddd868a","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":110,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"6eafa461-4a83-4da3-b85e-deb3c423dc31","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":110,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"7c9a42d9-f6ec-47d6-a675-33d9716e67d1","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":110,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"e52a7955-08bd-48a8-ad61-301d212818e3","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":110,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"9c551f31-d229-4d7c-86fb-ab2a902ff529","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":110,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"d7f9eecc-3554-4776-a829-f7daf5c1d27b","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":110,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"3821fe63-dc9d-4200-a963-0ae147b2e298","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":110,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"2e14fd0b-369c-4ab6-bd47-0fce852473c4","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":110,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"31aab78a-2101-4c31-9f1d-ecb723c433dc","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":110,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"fbe75fd5-bb2d-43bf-a422-51b042930668","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":110,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"da8bd585-7484-488a-886e-16c7cc9a8516","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":110,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"dd9a7dfb-4b5e-4dd5-ac32-8c68452c0755","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":110,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"35bc699a-5536-470d-b949-f2a194c73540","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":110,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"afc822f1-0117-4c1a-9c8c-bd8522ff982d","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":110,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"40a5182a-ec83-46bf-a385-9f11415566c1","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":110,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"937c98f0-04c3-4361-9767-fff7f3c14690","block_type":"box","text":"(","page_number":110,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"d5b7d8f8-55ba-45c2-9cbf-ddcdeebf8e08","block_type":"box","text":"i.e.","page_number":110,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"30b53908-5773-4eed-b3f9-ad5b8f7402b4","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":110,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"68eacd56-cfa5-46a1-b7e2-87230c1e4195","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":110,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"9ed5c678-f2c1-4492-a2ab-f48c859cf695","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":110,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"f65974cb-2a87-4536-a3a0-869b87cb02d7","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":110,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"3b34c57d-f3eb-4c67-8513-6bb6a7638b95","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":110,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"023b1699-ac65-437f-8b48-fddac57cbe64","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":110,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"33db1774-2e99-4ba7-9ae8-4f438641ef5a","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":110,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"17169b42-9bc6-41bd-8f36-36d8e735fb20","block_type":"box","text":"regarded as the sole issuer.","page_number":110,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"bb417982-0e84-467b-9c8c-40feefeac4fd","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":110,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"088d5fa3-a1db-4ef8-8bd5-570b90c7a087","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":110,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"001da222-25e0-41e3-941d-583994882296","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":110,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"fd91a745-9071-42d3-86d8-745eb6c7a5d8","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":110,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"bbb25f2a-86b5-483f-97de-628b84d20ecf","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":110,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"000aa5b4-ce9b-43e2-b337-c1e601f8183f","block_type":"box","text":"75% of its total assets.","page_number":110,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"2471d2bc-32d7-4e28-9316-a5441f8e8b1f","block_type":"box","text":"II-81","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fbb65b53-c8b9-4987-ae19-63df57507c41","block_type":"box","text":"NM0926U-5975843-110/228","page_number":110,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"dd1e4248-7c19-4bfa-a282-4d481644ff8d","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":111,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"1e18fb48-a30e-49cf-8940-806d82ba85e5","block_type":"box","text":"Directors and Officers","page_number":111,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"7b8e6e3b-f6f4-45de-976e-b362a2a96450","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":111,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"5ab51565-2683-49cd-8844-66a230bb67df","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":111,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"29f6c2e6-af64-4a92-8d34-b514e6275102","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":111,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"3be45a09-34e5-45c3-aa38-3fef66bfecb9","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":111,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"bc28ee6c-0e64-4fda-bb05-8b752dbc023f","block_type":"box","text":"Management Arrangements","page_number":111,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"7e3c14ef-6315-467b-a289-238bdb8aee01","block_type":"box","text":"Management Services.","page_number":111,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"9748d3e2-b549-4812-9132-182c907d05c0","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":111,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"d117a272-b225-4d38-9038-4636cf26f410","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":111,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"83c951dd-e237-4f26-a016-d63eb3ebc0ae","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":111,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"84318f1b-78e6-4b81-a9bb-66f3cf6999df","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":111,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"d141d4d8-a9af-455c-8b70-d5e8c283602e","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":111,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"297ed74a-d3a0-4233-819b-f074c5ce74a4","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":111,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"a06914a9-13ef-45b9-8905-584e2a6c2c54","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. 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See “Purchase of Shares —","page_number":111,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"55d2c911-4d58-48c0-80ae-a95e90542a51","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":111,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"b5a146ea-c079-49ae-aa49-18a5c300a240","block_type":"box","text":"Sub-Advisory Fee.","page_number":111,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"4c4306b7-6341-4550-a2b3-993cd925625c","block_type":"box","text":"The Manager of certain Funds has entered into one or more sub-advisory agreements (the","page_number":111,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"db4534d2-debf-42e4-a670-60d1e8f03dd2","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":111,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"319ee77e-7581-480c-8ef0-4c224a990669","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":111,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"70a00e0d-737d-47be-9224-70cf8c04ef4e","block_type":"box","text":"Organization of the Manager.","page_number":111,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"dd57cf38-07fa-4bb5-936d-d22a32479618","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":111,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"191db256-4c9b-410a-9e40-02f75637bfc4","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":111,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"79733240-392b-4730-876c-2dc2d60eb65b","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":111,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"0206fb3d-907c-45bf-a4f7-271b97fd330f","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":111,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"c41ddf99-b0cf-43f8-ac36-74dfb3209477","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":111,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"7c6685e6-7d3d-4cc1-a5f6-ee97d0de763e","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":111,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"3f84b402-dfb3-44aa-93c1-ce34a44b2790","block_type":"box","text":"Duration and Termination.","page_number":111,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"a6fa3f33-7e5c-4032-ac51-de562532dbc6","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":111,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"394850d6-04fc-4296-a7a5-6cdd28413a73","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":111,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"30af7d8e-6de8-4081-af1c-72a74ab37ae1","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":111,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"6e79137c-180e-47f2-825e-5ea777573cd9","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":111,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"0e46120d-30c1-497c-a893-c60143e31076","block_type":"box","text":"II-82","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cc7e8fba-d600-4386-86da-ab65c4a23fd4","block_type":"box","text":"NM0926U-5975843-111/228","page_number":111,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3c74fd8d-19e1-4233-94de-2aeaa902a84f","block_type":"box","text":"in the Investment Company Act) of any such party. Each Management Agreement automatically terminates on","page_number":112,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"baa2e300-5bd0-417b-b0fd-108425305224","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either party thereto or","page_number":112,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"f79923e3-e9ac-4b7b-8e4e-03480200fc0d","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":112,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"b19aae06-8b48-4a82-97b8-42708288d90d","block_type":"box","text":"Other Service Arrangements","page_number":112,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"e52f1132-2fa8-4f6b-ad7d-dc0f2232b7b2","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":112,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"c5c5b67f-7cad-42ca-ab00-d4a511c713ab","block_type":"box","text":"Certain Funds have entered into an administration agreement","page_number":112,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"6ad1f8e2-dde8-4d00-af76-5698efdb5a94","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Part I of the Fund’s","page_number":112,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"d4aa89c7-6bb6-46a6-99c0-43c9922806a9","block_type":"box","text":"SAI (each an “Administrator”). 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For information regarding any administrative fees paid by","page_number":112,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"2e573017-0d4c-4ed9-9b00-239c93acf8e7","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":112,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"6df99477-896b-472e-be7d-45631b328af1","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Part I of","page_number":112,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"b65227df-05e6-4898-ac72-0451bf33fd8f","block_type":"box","text":"that Fund’s SAI.","page_number":112,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"f3676811-97ba-4885-82bc-f9bcd8472645","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":112,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"fa1b846f-72f1-4be9-b978-0b0baa3edb46","block_type":"box","text":"certain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":112,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"8d6e7703-4983-48c5-8635-22984ea36ab8","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. 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Such contract is not assignable","page_number":112,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"7ab17127-6ca5-43af-909d-c1bab3a88998","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":112,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"e708dafe-d3cd-4581-a3bf-9abe3a4f9155","block_type":"box","text":"shareholders of the Fund.","page_number":112,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"3d97ab9a-9919-4bc0-b19f-a9a7b0b2780e","block_type":"box","text":"Transfer Agency Services.","page_number":112,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"757fd75d-b615-4780-a557-3be8665a20a9","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":112,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"54773114-c435-4ec2-a7d3-68e5835bbe44","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":112,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"54fe9f9c-a4c6-4f8c-92fe-e116b831102f","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":112,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"2638fd5e-1f6c-4ad0-8ba8-b0cdda316f1f","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":112,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"e75113a3-6e58-4966-b4d9-b4e87ceb59d9","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":112,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"3c98b1f8-c492-4f37-81aa-feb835fcf474","block_type":"box","text":"Custodian Services.","page_number":112,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"23f4a22d-5403-47ce-8188-a38e2c9d772f","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":112,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"3ee30975-d19a-456a-baf6-b23b79d05068","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":112,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"ce4e0424-22ed-4ec5-963b-e7821fe82c14","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":112,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"246d73af-880a-47fc-80b8-07c11234903d","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":112,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"024a40de-fded-4fef-a021-97d4a5fb29bd","block_type":"box","text":"certain assets.","page_number":112,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"0cf2a52f-066e-40f6-ba31-07ac4e24c209","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":112,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"82ac00ef-2b79-4e7f-960e-b3b9696db122","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":112,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"7cefab04-afda-4a65-ae4e-67e4dee13b79","block_type":"box","text":"Fund.","page_number":112,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"7a3e47c5-e375-4fec-9d47-67c264c32a0c","block_type":"box","text":"II-83","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d9263a6e-6e48-4711-bd05-0ac5adee95b1","block_type":"box","text":"NM0926U-5975843-112/228","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ed3aa435-23e6-4c82-8de9-82176cc45990","block_type":"box","text":"Accounting Services.","page_number":113,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"77c16ec3-374d-4054-8c33-840a394ccf11","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":113,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"d3a718a0-1dd0-4711-b61c-a7d03257eb7c","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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The Distribution","page_number":113,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"212b1531-71ae-4937-bbbe-1f76e0964bdf","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":113,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"deb8243f-f5ed-4ad2-8bee-436708f1379a","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":113,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"08798db5-034b-47fb-9e2c-91e9e2c0d0b7","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":113,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"936ec287-158d-4056-b285-e13437678e3c","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":113,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"153ea71f-b5a6-4862-9108-6d9ca8a04ccc","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":113,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"e81714e5-6d1d-493d-86be-796b581cf941","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":113,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"cc99035f-1962-4047-b3ea-1ac88e0ead3b","block_type":"box","text":"Code of Ethics","page_number":113,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"4aa70a77-b38b-4eed-bffb-6e2807c3ebe1","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":113,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"1b598e06-3604-42da-b502-4db872350da3","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":113,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"3f58a659-4b31-41af-9a1c-7de0eff4aa80","block_type":"box","text":"restricts certain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":113,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"ddb84ffc-a0c4-4878-a399-6a68922ddbb2","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":113,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"fb94fd88-34dd-44c7-bf47-04f28b04351c","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":113,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"15277e9d-a855-4581-b7d9-dc28bf27eb0f","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":113,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"89823964-1a35-4606-878f-f5d2ee62dd74","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":113,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"3967dc91-bf7f-49a9-a8dc-b7ee80f2384f","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. 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BlackRock, its subsidiaries and their","page_number":118,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"faf01be4-6308-44ff-946a-e1c6837451a8","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":118,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"0d523ebc-b8a6-48c1-ad61-1a010b353338","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":118,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"b0950627-592f-4b11-92ae-a43af087d46b","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":118,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"78aabff4-45be-4608-8a09-21ab636af986","block_type":"box","text":"and have interests other than that of managing the Funds. 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Such transactions, particularly in","page_number":118,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"bcb95be1-a32e-4833-9c5d-58b49a27bbc6","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":118,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"90b3fd2b-f9be-4988-a458-96f3072d6b94","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":118,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"7002136f-d2b7-4a22-8a84-b2515c65743e","block_type":"box","text":"In addition, the portfolio holdings of certain BlackRock-advised investment vehicles managed in an identical or","page_number":118,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"fbef7013-fe62-4508-a7da-34180d0bd20c","block_type":"box","text":"substantially similar manner as certain Funds are made publicly available on a more timely basis than the applicable","page_number":118,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"128246de-2fee-4dda-ae9a-f00449b536cd","block_type":"box","text":"Fund. 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BlackRock may, in certain cases, elect to implement internal policies and","page_number":119,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"8a71dec9-f876-4448-816b-2185ea686749","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in certain","page_number":119,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"8e318959-a840-448d-98a0-acf4831d7a19","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":119,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"db6b6cd1-7a84-457e-849b-f33fda45ccc7","block_type":"box","text":"Conflicts may also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":119,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"4b9d6d53-5838-4095-bc10-6d14bb7ede43","block_type":"box","text":"BlackRock. 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BlackRock may pursue rights, provide","page_number":119,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"459d0c0d-a1cc-4289-8262-392645ec4e66","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":119,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"4a295898-7c41-483d-a5c0-a960642c758e","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":119,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"008e99f3-60bd-464f-8ff4-068e3ed15d8b","block_type":"box","text":"action) may have a material adverse effect on the Fund. 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BlackRock may (but is not required to) effect purchases and sales between","page_number":119,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"d931d738-80ff-4c25-b7fd-87e5db699042","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":119,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"314668b2-fa61-4751-bcee-3bdc86b7cf4d","block_type":"box","text":"based on each party’s investment objectives and guidelines, subject to applicable law and regulation. 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BlackRock may have a potentially conflicting division of","page_number":119,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"3813c9a0-ab02-4fb6-8b99-a15b7abe53b8","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":119,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"ccf29762-ea53-484d-bf1e-a39a0540ae1b","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":119,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"b3a59d9c-d5ee-4999-b8fa-13714f960087","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":119,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"4ea3c680-4cba-46be-bd2d-ee161a690e35","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":119,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"f00fcb1c-becc-425c-b8a6-f54dd6f7d169","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":119,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"539db7b4-d875-43a1-8054-b0f317874303","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":119,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"20fe66e6-ab20-4155-b2ef-7688c72cd6a2","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":119,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"612bc381-9b2b-4f06-b143-d7a663ef008f","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":119,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"298d34e2-91ec-4385-b276-f5b83bbd9ee0","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":119,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"ee8acb76-909a-4568-a331-1b5e7e944340","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":119,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"8cfb6ef4-f311-4f64-a846-17102f098f88","block_type":"box","text":"II-90","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"762a473f-b61a-4d87-9f78-812203bf2946","block_type":"box","text":"NM0926U-5975843-119/228","page_number":119,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"11ccc4ea-bc8c-4c09-82c9-5455c0a163b8","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":120,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"9522c50f-3a5f-4eb4-a9af-a72f2c93c741","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":120,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"769cc1d8-559e-45cf-8a67-790d683fe240","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":120,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"617a81ff-d789-486d-a21d-4250d7ba5678","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":120,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"3308b3a5-ec83-4a04-9565-1ab739c13880","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":120,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"fa323d85-ded0-48da-b259-3a5960a27296","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":120,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"0ea3210a-b9ac-4b28-8f3a-5061c865eb0a","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":120,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"3861de64-9930-4c6c-99b8-43e3bd78e76b","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":120,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"25f389a5-5587-4f08-ba27-2a38c1eac31f","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":120,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"089f8366-235f-4dff-8d24-c71d49828cc3","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":120,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"fd49ee04-b16b-4961-96ea-555f3e6f1f4b","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":120,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"9f0ceb3f-1530-4f10-9a87-734b379d6fd2","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":120,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"516dcbd2-1d5a-4dd1-892b-67f4a4b523ff","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":120,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"9a1d94d1-ec62-401a-9027-d7c743ffa89a","block_type":"box","text":"managing a Fund.","page_number":120,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"1efe89a7-7e92-497a-afea-7a2d46a2361e","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":120,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"4915e92b-130d-46ef-914a-29eacf754519","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":120,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"19ce9893-7702-466c-af5f-c7e4ceec81cb","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":120,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"4be4912e-6b1a-4a91-8053-3a9c51809de4","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":120,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"181605d2-c925-40ac-b3d0-ad9f041fda67","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":120,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"9eaf763a-844c-4190-8f17-dafb0c0e87cb","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":120,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"8ce2be0d-dac9-4095-b200-972d76dbc15c","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":120,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"411c6f75-206e-4a8e-8cc5-932199948bfe","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":120,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"08924507-ae1e-4ac4-9ab2-fcab9193a977","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":120,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"56c26989-2eb3-44d4-afd7-0799aaf3ec41","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":120,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"0f8b8ad8-3a83-4171-ad56-8f6f73372b9e","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":120,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"e59dac11-dba3-4587-84d6-f006e43255db","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":120,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"45b24d4d-c848-4dd7-b4bf-f74f59ab161d","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":120,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"c8eb9451-5771-477c-b470-aea198038512","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":120,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"358f2fbf-a8a6-4d0e-940b-5cfed37655c9","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":120,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"6ff4077a-93dc-4e8c-8268-e83c4d1dd172","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":120,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"f617972f-de9a-4d0f-ae9f-61c57d50c7fe","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":120,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"dc454b5b-e9de-4a7d-9954-8433d6cc7aea","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":120,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"e5fb1447-9801-48b2-bec1-4300a5c45838","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":120,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"1bb9e40c-ed00-4540-9837-b28d45f93420","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":120,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"f68d8938-e995-4e2d-8d4c-9e99665c7e10","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":120,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"b988ee30-bb53-430c-952f-f9d1b97f1f9e","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":120,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"9f901b16-3462-4c42-9816-ee3ca7d89864","block_type":"box","text":"under management for BlackRock.","page_number":120,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"78b2f33a-0a37-4941-84cb-f71471ff135e","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":120,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"de6b5a12-3338-40fa-9bf4-3ef8ac09af10","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":120,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"38132514-55a4-4c05-9ab0-411893eb2d7c","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":120,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"bb7f6963-7b04-4367-b47c-67fcbbe02417","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":120,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"26eefb5e-161c-400d-a19f-953d9fbc61dc","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":120,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"403d5365-6f58-40e4-a972-fb7b7ccf04e8","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":120,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"cf029e4f-80e3-4372-9213-193946da19d2","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":120,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"2c6ec22a-0152-4819-8879-ddf425c98cfe","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":120,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"469387b1-7740-4485-a6cc-25ab8b546907","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":120,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"12b71366-c4af-463d-a6d2-7194f95de104","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":120,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"3ca469a0-8fda-4f22-bfb3-af515b2ab111","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":120,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"cd955929-7764-406b-9cef-3dbcbfbbc992","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":120,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"45dcd2cc-877a-4b73-be1d-48dfd959c1c0","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":120,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"af8fe4dc-808a-4427-8bae-8ed9343bcb63","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":120,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"2ebd9a86-c717-416b-8c94-862f7cc1ec80","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":120,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"2de1fd04-9c6c-48d4-9c3f-78d1e4ed0c19","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":120,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"7686ecee-5b3b-4b01-a7f5-a808cd1a7d18","block_type":"box","text":"II-91","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b01aba6-8809-4915-8248-a7227b65c0c1","block_type":"box","text":"NM0926U-5975843-120/228","page_number":120,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6f397a15-335a-4ba8-83db-bb109db8183a","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":121,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"649f7416-258b-4fae-9a3c-a6d560fab310","block_type":"box","text":"any such fees or other amounts.","page_number":121,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"ba99d9f7-ec83-41e2-872b-e3fe4d7d184f","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":121,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"5e4ccfeb-ca6c-4415-b853-97a7b3cac295","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":121,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"7dda8f56-2d5f-49ee-80e4-6363494e7d79","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":121,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"bf6212f0-3553-4ee0-9389-3e320cf7dd76","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":121,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"9d46bf90-333b-4ce3-b24b-8ebf37ce094f","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":121,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"460ba6c8-b96d-4ad9-b4ed-3206c19389dc","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":121,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"88e3b726-b088-47ce-a6b2-caafca95bbd8","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":121,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"65bd0f3d-1af1-4c56-a91c-0e2a5d3f51be","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":121,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"0b929d15-eca3-495a-b868-2f7567a560d8","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":121,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"6474b9b2-7177-48e8-904f-bd2dc4e81f1a","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":121,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"9a68fddd-c44e-4878-af4d-57c035909ea3","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":121,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"e4743bca-660c-4173-8b5b-d54785b19867","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":121,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"42ca18be-4e43-4995-97f5-6fe0750b4245","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":121,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"d41422bd-d3f3-449d-920c-3c211c2f9f0b","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":121,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"c82ca914-8462-4a89-9b52-3ec43bb07b0b","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":121,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"1233840c-4334-45d4-ac77-5de316d58cb2","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":121,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"af30bfad-c5e8-4765-9e12-c0dc861a94d3","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":121,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"37754544-6754-4496-865d-f046c89380fa","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":121,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"3871a1c5-5b34-42ba-9807-307a7ee17f2e","block_type":"box","text":"potential dollar exposure of collateral shortfall resulting from a borrower default (“shortfall risk”) in the securities","page_number":121,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"c521f75b-2488-4804-ac88-d84d39fdbfde","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":121,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"603e2a78-ae96-4f2e-8f53-6959c2522a1d","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":121,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"6c066b94-c353-47bc-8878-13abb4b061c5","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":121,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"94fe806f-f34f-4b75-bbf6-63cc122ce544","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":121,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"584571eb-2acf-4c0e-abda-13c1f59bae85","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":121,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"ef861dee-3387-4fc9-b7e0-24f815d19c06","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":121,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"7b3cff61-c7e0-4191-a143-f911b750ae15","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":121,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"07be675b-8138-406f-9cf5-974d69e3b236","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":121,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"883b84c1-dce3-4b27-959b-5642b04aecd4","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":121,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"499685e5-e0ce-4f81-ac2d-63b6d920f3eb","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":121,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"b19d5e38-b219-424c-8030-0761467a017d","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":121,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"3d7d93a3-3d98-4555-8839-7d5904d88499","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":121,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"5deeac5f-2b9d-42d3-be05-645645360e77","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":121,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"c9455831-70b4-493b-bf21-5ab7bb08dede","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":121,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"5a89d0f6-33d3-4fc0-b58d-0f72f02c167e","block_type":"box","text":"regulation.","page_number":121,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"8cd58fe3-4438-44da-a979-1d9016adf731","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":121,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"a9a1a089-95e6-424b-9070-74961271b639","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":121,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"3a542674-bce2-4209-a485-10f2cb37cd8f","block_type":"box","text":"various program limits (","page_number":121,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"f51af125-2647-43c0-8ee9-20f27667b478","block_type":"box","text":"i.e.","page_number":121,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"7dbe836b-c7df-4c43-99b5-99c2b35c0750","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":121,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"1806349a-1679-4f38-9117-dacc3aa019db","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":121,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"76a4cec0-12c1-4689-897d-7238a9aa3fdd","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":121,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"a52baebe-f5a1-4371-b326-998e05e19b54","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":121,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"e352d7c9-5c6e-4edf-8ba2-6c9b709b0709","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":121,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"b327c284-eaa7-4c80-a149-126c7d2e7990","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":121,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"2ab4bf2c-21a8-4337-9c4d-6df1a5f3db80","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":121,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"fecc12b8-260f-4ff8-97ff-43e129518669","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":121,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"e2ca83dd-642c-4bc8-b6ff-7a90e6a540ed","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":121,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"8e296e01-b062-41d4-a011-527141093f41","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":121,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"082539af-9ba9-4e15-a4ad-c38d5b9e7099","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":121,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"87c9fa65-43c9-4287-aa4f-48dfe2f1ab05","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":121,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"5fa3e7f2-a4b3-4061-82cd-e7892f6c3f81","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":121,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"42c6a48e-88b9-4801-b7a4-d6fdb72dbc3e","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":121,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"383a050b-8f80-46cf-b8d8-e0985a7d83a9","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":121,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"a81381cf-65c9-403e-8093-4e75b5f5c447","block_type":"box","text":"II-92","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b891062b-e42d-4bd6-8a23-94585d2fdde4","block_type":"box","text":"NM0926U-5975843-121/228","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8d514cfc-c715-4d34-8a5d-3e9d2baa2ec3","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":122,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"acf339c5-8ee4-46c5-a85c-97a23ea7828f","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":122,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"12215821-5d34-48c6-89bf-0c003e7c09ff","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":122,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"f71a0afa-1c0f-47c9-b561-669d6faf42d2","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":122,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"3bf0eb2a-e054-4521-90fb-34f86ebc69ad","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":122,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"a112620e-1e1e-4fbd-bd6f-05f675524533","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":122,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"44fafa25-0f5b-4bf5-9899-07e838354748","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":122,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"546bfc45-a46a-4a1f-b615-d2e531baabf4","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":122,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"c68e5950-5c88-4f16-a6d0-dcce45f44801","block_type":"box","text":"than through client commissions.","page_number":122,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"95f0442c-9fd8-4a27-8304-26f6ec356b3f","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":122,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"87377be6-b25b-4dce-8f78-030efcd60255","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":122,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"d4d87f51-6e2f-4769-823c-185610c6bd09","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":122,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"4533c65a-c7cc-42d4-a7e3-0569ffa77d4c","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":122,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"5ea3b4ac-9634-4283-b2f9-ed3f02a9d372","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":122,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"badeeb6e-3852-4756-939b-7a95cda6e8aa","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":122,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"69b64518-921c-4561-931c-7b06b53d6f00","block_type":"box","text":"research-oriented software and other services and products.","page_number":122,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"8627fff9-b665-4590-9de2-a2ea9f0f7a98","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":122,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"bce70fda-6929-434c-86b3-075a8b7dba7e","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":122,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"06fa2cb6-dd21-44e2-bc69-df717ec67934","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":122,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"5eba6060-672b-45ea-be6a-93d7b18f8029","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":122,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"e322b3c5-94db-4a19-872c-887b792b9897","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":122,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"ab5269ae-6d42-44a9-a4c1-5a860c7462c7","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":122,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"c16265ec-d206-4bc2-a9d3-ecd56929be49","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":122,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"31eb02d6-91e1-4cd8-aa72-f380655c225f","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":122,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"9775f95c-29c1-43e9-bf18-9ab24d413ba0","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":122,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"2f71a6c6-f970-4968-92de-96727d191ec4","block_type":"box","text":"and services itself.","page_number":122,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"ff9b4d78-6835-4e39-a2b7-3b0d7034ee2d","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":122,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"979bc74f-dc4e-415b-87a8-07aca4472da4","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":122,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"d01512a1-60b8-4885-96a3-9488a4f1f27e","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":122,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"bfdf24ea-8ee6-4c82-8e93-07692f7181d3","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":122,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"9f358d83-87bb-4676-a24b-3ae7c88b81d8","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":122,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"c838ad02-baf2-4513-82a2-7b236f73d35d","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":122,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"07515a15-7a8c-4207-ad24-6cefb22220e1","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":122,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"e27e1ea4-cc19-4ef8-8f22-a6b521debb55","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":122,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"387b9994-084f-4879-ba3b-9e5a28b1791a","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":122,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"3da8c00e-2297-414f-b6e9-3336a460c58e","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":122,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"b30abd05-f480-4727-b4ad-d5946c435935","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":122,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"bda18494-3cf5-4de7-8e54-e35c6041853d","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":122,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"428d6c8d-5457-44c5-98ea-16433e0383cd","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":122,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"20c0e4d0-9729-4aa7-a0fc-dfc48f974b92","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":122,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"5bd12bca-aac6-4ab8-8a86-dca8d52be0e0","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":122,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"f947349c-fd75-44d6-ac1d-e6d114097b6b","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":122,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"327149e8-a004-43d5-b83f-de640caab4ab","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":122,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"a2459a5c-cca0-441a-a331-87df07a6c0a4","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":122,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"c5ce7a43-5884-4a6c-84c7-ce1a762b3d85","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":122,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"ed7ef06d-356f-442b-861e-db7da6c5be0c","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":122,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"bba91d21-78de-4945-8b8d-e547e41e70f9","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":122,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"6a7057ae-e1ae-4993-af93-b72f3d048c34","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":122,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"651be4c2-2451-443f-9af0-a2e9ac58c9c0","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":122,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"69350454-d364-4f10-b1f9-0fa6dbe57ee5","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":122,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"780fbbca-86ce-46c4-9d2d-39cfc25c8337","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":122,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"e382ba61-c271-4e5b-a6cd-7cf28f0134d3","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":122,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"2f3ee8ac-0b41-409e-889f-688f491285d7","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":122,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"190b3c92-4b08-40ef-ab19-1eed1801e973","block_type":"box","text":"II-93","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"efa82c89-c98c-4fad-8739-702244f743fb","block_type":"box","text":"NM0926U-5975843-122/228","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"decbd0a7-4bef-471b-9782-b700e17329fc","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":123,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"88b399ed-b6dc-4614-b09e-adc1806145d8","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":123,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"fd3a11ff-6709-4fca-a907-57e9e7fa9dae","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":123,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"d100ba99-7b6d-4013-b478-f5dae803b3d4","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":123,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"f30c135f-bd5d-4ac1-9b59-84ab95b455c9","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":123,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"1ce4922b-e33d-40a2-90fb-2e7de75e53d8","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":123,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"dbd1580d-bb40-43c9-8b4e-40e4614b557c","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":123,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"debd762b-58f8-4a96-8c78-ea534857b553","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":123,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"68ac38ce-e013-4d54-9290-b919d106b867","block_type":"box","text":"sales of certain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":123,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"d2081fd4-5c92-43bc-b117-0f5e132c7b94","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":123,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"53301011-f228-429e-a7ce-60db078be251","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":123,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"f6dcb4c0-2b42-40eb-923f-02f99b34d6bd","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":123,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"f9f46495-9ab7-4b9c-a712-18fe83a2a86c","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":123,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"d81602fb-5d10-4ebd-b489-d3bb2faceaf5","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":123,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"b514fa1b-00a5-482c-9fab-8022385b7c7c","block_type":"box","text":"BlackRock may provide valuation assistance to certain clients with respect to certain securities or other","page_number":123,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"719e0358-06d1-438c-880a-2001bb5d9796","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":123,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"e6e4902b-3cec-4759-a404-931c8b93b3bc","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":123,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"54ef6727-25f8-4e0e-b8e4-2fdfccfcc690","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":123,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"8c195493-62da-491c-b9d2-fce29ac91bf6","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":123,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"f4d23eed-6c23-423a-b688-8e123bb2e88d","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":123,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"332c0c2e-a3bd-4f31-b1f1-33d9664b67c9","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":123,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"1dcfe0f3-bbe4-43ff-bd63-ea3ee6a20a6b","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":123,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"01647093-74ed-471d-83de-6c9fdc2ae8a4","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":123,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"80d4c1f7-a67a-41cd-a50a-8e47894c6f78","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":123,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"905b7fa0-01cc-41c3-bc03-b4af1f179fc5","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":123,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"f96d2736-7f7e-4099-adb8-ef221e6e932c","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third party valuation models, fair value","page_number":123,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"67c3a152-5c3a-4c4e-aba6-98002265a838","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":123,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"7a3ed1e3-b00f-414f-8bcf-54191971ce25","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":123,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"bf70182a-e0d1-4db4-8c94-b5267ebcaf0b","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":123,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"757bbdc7-1576-4929-a469-02c86de47e15","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":123,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"11e86e27-d686-4c6a-9c90-4fd145b24404","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":123,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"09919833-ac88-4fd8-bfcc-7896c0a4c1ce","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":123,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"921f862e-5d4e-4fbf-b454-058ade02b5b7","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":123,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"86464b88-132d-427c-8c3f-fdeb2924b6c6","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":123,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"7e0ae164-4113-4881-991c-4a97841b76c7","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":123,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"5e79b88c-9c4d-4612-ad33-9e4bbe924e87","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":123,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"1cd99f38-2767-4f6c-a059-c19fc5b0bdc3","block_type":"box","text":"some additional expenses.","page_number":123,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"04c5e0c5-b63f-4742-af61-40a677ef7986","block_type":"box","text":"II-94","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6dc3bc20-0b06-46b6-9fe6-3105fba659aa","block_type":"box","text":"NM0926U-5975843-123/228","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8b29426b-ff31-441f-b302-687480d60bb3","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":124,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"232d6819-a933-4e39-9c62-ed4c2ea81ace","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":124,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"d40f2598-dc5c-4ab2-ac8f-1412c438737c","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":124,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"575098f0-d4eb-4d8f-8252-23682efe4cc9","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":124,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"3bd30f83-afc2-4f62-bedc-ab067842b1c0","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":124,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"336b2a6b-ca83-482b-8dec-c853dc9cf7b6","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":124,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"93f9dac2-0b68-4d28-9f42-fbad342cb053","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":124,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"62dba484-75eb-47f6-bd0a-40a610e69445","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":124,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"b2e7d24c-2fd5-4e03-9f2d-e1b68e2ce649","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":124,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"75d2cf48-ca1c-4f85-8791-a11d345e1f75","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":124,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"98488981-baed-4f21-878a-365b45261b54","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":124,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"40489fe2-4f2e-4b13-8d0e-f977b7dd3e21","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":124,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"ef8e15d7-3cab-4459-96f2-022dbfb94c9d","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":124,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"9c3e6bf9-3520-4446-81bf-ce9e73c7b816","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":124,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"7b4eb041-366d-4ce9-9ab1-523b1b8d5b98","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":124,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"955c664d-61e3-47d0-9ae0-ffdfc48edb9f","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":124,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"9bf20097-e9c9-4ee2-abb7-4e4ee76d9391","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":124,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"4eaba66d-8665-4115-8361-5cd90276b8ff","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":124,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"5176565e-6161-44c1-bc99-da9fa68d7f54","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":124,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"15121f5a-b6e8-4c1a-a136-2580b0ccdc3b","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":124,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"c22cb1a7-135b-42c0-b141-333684c123ea","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":124,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"a06bbec0-ba4a-4c91-ae4b-9d31d2770341","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":124,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"c652d877-aeb3-40c0-a763-1c3c399d42d4","block_type":"box","text":"public information about the company (","page_number":124,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"7e5c9526-03ab-4085-94bd-bc2ed285e4c8","block_type":"box","text":"e.g.","page_number":124,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"a8b83531-97a9-4696-8c47-a924db9808b3","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":124,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"4a654a11-9feb-4725-b199-9a55931d4b71","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":124,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"3316403f-c770-40a9-9719-e10615892c82","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":124,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"595df6be-4b6f-4441-99be-0bf560df685a","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":124,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"c2620f97-31d6-43fb-b621-6cf35d68c5eb","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":124,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"45cd0cea-f6bd-4537-a04b-b0927fbb2691","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":124,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"3769b906-f651-460c-9e7c-5d1d816f6d1e","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":124,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"6855786a-ee23-499a-bc5a-a661592fa4ca","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":124,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"04edf810-67c8-4ed5-a13b-c8928d542caa","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":124,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"22dfc223-b944-4f6c-b5e0-ff5f619a03a3","block_type":"box","text":"of the issuer.","page_number":124,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"f2507414-a855-44ea-b804-becf1c308f6c","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":124,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"e74348b3-78d3-4d1e-a61a-0081fc35f9e2","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":124,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"0fe83d35-4596-49a4-a581-3683d9fe3fa8","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":124,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"410cd6d4-44c0-4296-9964-3fa5f8f507d0","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":124,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"eafc09b0-4113-409f-b158-43517eaaab5d","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":124,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"d091eea3-d103-4490-afe7-ec8e02c05013","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":124,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"4f5f5797-5df6-484f-9dc6-8f0e978dc6fb","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":124,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"c50094d6-1bb9-4ae8-a576-b833fd98240c","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":124,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"4266372a-7913-40ad-8a0b-4e8f0823bb71","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":124,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"5e6d2d21-7ba1-4a76-bf72-fd2150afa80f","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":124,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"4ea1f649-402d-4f9f-a36a-3f055a8db51b","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":124,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"d125758c-d0d9-4fdb-ab95-6705cdccc2ee","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":124,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"fc92f482-5bd3-4108-9596-778504e56d23","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":124,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"e3a51efc-a443-4691-bfe2-d41d3139488b","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":124,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"4d19a005-6439-4caa-81b9-0b9d6f89a1fe","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":124,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"2c8d6192-7960-4b4b-8c6a-11f4a472479c","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":124,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"cf9fa1c9-1d1f-448b-9b62-33ce5e2972f5","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":124,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"41860395-e431-4dda-b587-a0b7616dc88f","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":124,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"95a241ce-acfc-499b-8dce-ad61082aa71f","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":124,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"9f59402f-dbfd-4a61-a717-1a291e7b2b01","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":124,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"d098bd86-37db-4fed-a558-47323b9d8f6b","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":124,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"880dd23a-ef5f-44e7-979f-3eec243d89bc","block_type":"box","text":"II-95","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1817355b-b8f8-403a-a768-b4c977e04562","block_type":"box","text":"NM0926U-5975843-124/228","page_number":124,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9de39056-f102-48a4-8cf1-cb00cf17929f","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":125,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"fa8498a9-96bc-45fb-b6f8-d7e849dec560","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":125,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"3567add1-531e-4deb-a0ee-d4990419209c","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":125,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"ac5b2177-403b-4684-82ca-652f05d32fa6","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":125,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"5ff3079d-722e-49eb-aed5-49473af280f9","block_type":"box","text":"a barrier.","page_number":125,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"142f4992-5f69-4f6b-9381-fc68793ab71f","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":125,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"c912bae2-7509-4e19-9fdc-0276f0a1cae6","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":125,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"37725676-54fc-478b-a42f-a38ee261140c","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":125,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"d61135c5-a0c2-4978-a676-802dfa03725b","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":125,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"8a2b5aa0-6a37-470f-88f8-6d143943368a","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":125,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"a5b0d77b-d271-4e30-bd76-eb3a22fd8fcb","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":125,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"984fefcc-e23b-4a23-a723-41aad75760be","block_type":"box","text":"that operate in certain industries (","page_number":125,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"2d92b944-d3d9-41b4-9ca5-50f5f30f774c","block_type":"box","text":"e.g.","page_number":125,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"6415a1e1-f9f3-4a71-96a6-fdfeacdc8504","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":125,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"6befddf1-c61d-4896-897e-62ca9acc21b6","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":125,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"5e1af093-0535-4055-9955-0bdf795ca9b8","block_type":"box","text":"e.g.","page_number":125,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"917c78e6-fd1f-49a1-a100-7659ac36c7d5","block_type":"box","text":", with mechanisms such as poison pills","page_number":125,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"71b10138-2042-4d32-9308-4831d8c4eef9","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":125,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"3be61a7d-c5e9-4f0f-a45c-e9ecf1ea1322","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":125,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"98adf0e8-deaa-4459-9c13-b44dce4078b5","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":125,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"20d3c50f-5d35-4a1d-a584-be9037e457e7","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":125,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"c3640cd1-116c-4348-9683-92df5beccc30","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":125,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"778d2aba-b890-4427-80dc-ea65ed2b9c9f","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":125,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"921947cf-4859-486a-b2b5-7906a0d16cca","block_type":"box","text":"seek to make indirect investments (","page_number":125,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"7423e18f-0707-487c-9f3e-616f4ceebef3","block_type":"box","text":"e.g.","page_number":125,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"5470b909-8ba7-4cbc-9499-5b587d5d3d06","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":125,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"1542993a-5de4-4da3-9b5c-50b719b2482e","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":125,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"ebc17cb2-40ba-4d1e-b826-b4bffd9ba585","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":125,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"a163375b-885a-48fd-a07c-63f9f5b540e0","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":125,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"bb15a804-adbd-43d2-a9c5-c8c78410d914","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":125,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"c0fb8e7a-8a04-43a8-850c-4e1b59989222","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":125,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"139c2280-30ad-4197-907c-941b80d161a9","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":125,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"17fce690-ce70-4285-9e12-7811d023547c","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":125,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"163376ba-d417-4ffd-98c3-07d4e5d4c730","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":125,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"91be4fd1-9fb6-40a6-8a72-147c50d2826f","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":125,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"0dc2ea34-ad4b-4adc-b178-5f8c42cd514a","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":125,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"1f8d8ac6-b789-46dc-8333-86928033c904","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":125,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"b2060a9e-9e4e-4cea-b01c-b986fdffb2ba","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":125,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"de15a5d1-6592-4f99-ac00-a6acfa935b19","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":125,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"addb14cc-8691-40c3-a784-0309329986bd","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":125,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"4ce7e9cb-d1ab-4b53-bb90-047acffa8f31","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":125,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"ab2b07f5-d5e4-49bd-bf5c-42b1f428ac36","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":125,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"f5e6d578-f55b-4e11-9c8b-a56eeb952f25","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":125,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"75d8db6c-50b7-4d97-a400-5d9eb2e55a52","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":125,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"b6c84571-4364-4664-8476-e6098afcf531","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":125,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"458116c8-3b81-4cb8-bbe1-c7280d216f43","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":125,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"5b02c3b3-f146-40e5-ab86-3459019b2da1","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":125,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"9522ae8c-081f-4b55-8c90-b7894e324eb9","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":125,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"ccaff1d0-ecc6-40e0-975e-b7fb76b3866f","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":125,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"490c8947-a496-4ba6-b38a-25f1054e80c5","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":125,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"6b679a27-9be1-4b01-8a7f-a79343fa12ca","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":125,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"230072e1-a19a-4076-b177-5d4537e2f5f5","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":125,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"149d7073-676e-4987-b83e-f5c12b8c19b5","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":125,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"969aada1-d96f-4535-b99e-94d92c821a97","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":125,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"3f5a90f1-4eea-4009-8fb3-e0449f8c9a91","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":125,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"00524433-3004-49d8-bccd-f70150ad8ea8","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":125,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"4d00371d-ab67-453a-acff-c9db12acf71f","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":125,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"893c0466-f2b1-47d0-b7d4-b012741a4c3a","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":125,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"907c0e88-e4a5-403c-8485-aee48aa4f44f","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":125,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"d2629196-6ad8-4c1f-bd7c-e4c8d6726774","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":125,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"88588ca2-53fb-4733-9a50-e431d2fd06bd","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":125,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"b4929a62-9b88-4f03-9716-9df6c974d0c3","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":125,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"9814ca23-b554-4cbf-a7eb-be2baec80a18","block_type":"box","text":"II-96","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a02c1cc9-3a5b-4ee2-a6dd-fdc89bcbf84e","block_type":"box","text":"NM0926U-5975843-125/228","page_number":125,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"95cc6716-6971-4da6-84e0-14e4d39906c8","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":126,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"a5c189f4-c1b4-4894-b1c3-770a43f3dcce","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":126,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"67789d84-1fe7-40e2-9841-cdf7cfb74792","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":126,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"972d9529-9b29-4e78-8dd9-41928e85ef07","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":126,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"324d94ae-8c4b-420a-ad3c-2c023b943236","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":126,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"e85e1f8d-1ece-41c6-9de5-4b936b4b66cb","block_type":"box","text":"strategy with respect to such security or asset.","page_number":126,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"51a409b9-0423-4ff2-aa40-03e40b511baa","block_type":"box","text":"BlackRock may maintain securities indices. 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In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":126,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"6c7934f9-b971-4104-a928-d98b62dd11ff","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":126,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"fe11851f-621d-4eac-b7fe-c87b0b817a62","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":126,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"289065d6-b753-4128-8835-fc51d0f8a8a3","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":126,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"09ef3399-783c-427c-858c-4490ca4d38b4","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":126,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"38789bbb-ada4-4a31-ad8c-ac98e444ac78","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":126,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"e2c933d7-7aa2-4c10-a44c-03e554936cc5","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":126,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"cebf83a1-03e1-43f0-90ae-a6a6986ae567","block_type":"box","text":"e.g.","page_number":126,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"c697cbdf-9834-489e-9517-3577ce5603af","block_type":"box","text":", custodians,","page_number":126,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"84fcab38-8286-4e72-b7f6-210d68d7780c","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":126,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"82ad0514-a36c-4d59-aff4-e551478f8184","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":126,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"7d89d2c4-3848-4a4a-a56a-b2dffec723a9","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":126,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"04ea6343-e5fe-4fd0-a758-4df8c17189a1","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":126,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"9eca0623-f91c-42b9-915a-caa8d06dfe93","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":126,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"f51c566f-ec9f-4b29-886d-32e237f5fae8","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":126,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"992be0a7-8262-4b89-b07c-fe41b936bb25","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":126,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"93fcc317-c4a4-477b-8cf2-f2b1300ed520","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":126,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"2b0124f7-aeb5-459d-ba16-fcd481f5a26d","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":126,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"8d8d65bd-c85a-41a7-9baa-714645c6a8cc","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":126,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"5defc2d4-bbf4-45a3-9d02-3b1525a36abb","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":126,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"f647298f-4fc9-458c-945e-337c50a0ff9f","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":126,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"1767a1de-781b-4246-8804-76aeae94e860","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":126,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"694d083d-c126-4e58-ad2e-cb88b5d21fa7","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":126,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"921393cb-3f67-4f80-9ac2-6d7eff2c6d7b","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":126,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"74d2c8f6-dab2-45ae-93db-59222e5ccb7c","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":126,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"9585021a-868d-46d7-a0f3-4ac6f3836c45","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":126,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"c658bfe8-2b6e-41df-827f-b4ef7437bb3b","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":126,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"7f7ac3cb-0afa-40c7-9d2c-d7f26df771b2","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":126,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"1d4c7a54-8453-40e7-9191-7ba50a710905","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":126,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"50fc4d38-0564-4785-ba10-8fc4bc79e783","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":126,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"f55c53f0-0a1b-4f64-adee-75f461748483","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":126,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"a163b5a6-88ea-4c49-bd07-f0367162b50a","block_type":"box","text":"provider.","page_number":126,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"bbe6466a-e79e-4d00-9528-f714e872177c","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":126,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"93276bd1-6752-4491-be66-04e86f66a1e9","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":126,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"0262db43-90bd-4e4c-8b88-5ba9b6d5e28c","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":126,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"abc50a67-dd1f-4663-85e1-9f642b08faac","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":126,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"9d762b87-bf89-49c9-968e-8c64b48bcd02","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":126,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"f1fc7b1b-c664-4ba8-b715-f8f2036b893e","block_type":"box","text":"PURCHASE OF SHARES","page_number":126,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"3e04122a-d380-4c8c-b413-4208be58d995","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":126,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"b1b72a19-1bf3-4979-9b1b-5e2bca46264f","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":126,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"396beaab-a593-4c7b-8080-9b0cee8ce976","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":126,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"46e8fabe-3448-4e12-bcf1-7ef8d5ccd882","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":126,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"175d69bf-c160-428b-85a6-8d9da6a2172a","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":126,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"98b683b9-bec1-4df3-ac5d-b01cef3cbd37","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":126,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"b4328e53-a5ed-4e10-bec8-d3fb33848f1d","block_type":"box","text":"II-97","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"27a2b2c5-c179-4649-afd8-af59b43e9ad7","block_type":"box","text":"NM0926U-5975843-126/228","page_number":126,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"928186b3-6da7-470c-a378-65e349e1fcd5","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":127,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"721cc003-aa78-4d25-a8b4-0f006b78dd71","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":127,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"f867743f-4b22-4bca-9bd4-57d23c382182","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":127,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"8a63e582-e318-4f82-99ba-97b6a0550c96","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":127,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"7505dbaa-cb79-465d-b663-20890715ab28","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":127,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"c4627e60-6e05-42b7-ba58-76abf74617de","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":127,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"ad6126db-071a-41d7-861f-787fdddeddc8","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":127,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"9c84ccad-a861-4e1c-8ba1-c68abd3db3cc","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":127,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"9578d76b-620a-4b99-8e0e-ca18f97dcc2e","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":127,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"3cbd6d0c-681b-4e8b-8de0-2f16c9af733c","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":127,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"22abbc69-32c7-427b-8628-8170d26d276f","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":127,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"7660f3ad-fc0a-4887-b811-f8a455cf7f1c","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":127,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"3f9bf10a-48dc-4db8-a973-e548bb62b833","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":127,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"d3312e55-8df4-4812-beac-be7162bd1a45","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":127,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"04116900-ac6c-447a-b1c4-71a8a7aba104","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":127,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"0bbc6afc-c81a-4dd4-99b7-69c82f2bfd65","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":127,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"fb38090e-4bb7-4636-ac7e-1a22a5050f07","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":127,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"8b4e5605-77cf-497a-8346-8a8f17507b73","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":127,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"891a63ce-25a3-4766-a560-bd07f494831a","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":127,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"a8d2459a-7d9e-45f5-a830-79ddb4ef5b89","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":127,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"68a1a94b-a702-4eb3-bbbf-179ba891f470","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":127,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"fa40aa26-15f3-4f8b-8516-e8fca4644a4f","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":127,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"cc23eeda-da3e-45af-8663-5f651382c670","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":127,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"618a9738-793e-4c1b-937a-719067246f77","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":127,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"dcba9777-5065-4684-b378-7c5a80b8f2fd","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":127,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"c2a664eb-243e-47da-8e4b-4ae16c7619a4","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":127,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"d08e0a69-cd56-48cc-8649-f60beb1f7bb8","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":127,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"1012f16b-0c4c-436d-8ba4-9fc4769bdddd","block_type":"box","text":"investment is $25.","page_number":127,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"12163b4f-67b6-4878-83f9-f2d2d6a2ce54","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":127,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"d1401f2b-aacc-4ec2-96c5-4aaf1d9ce00f","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":127,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"28d0b0f2-35ed-4943-9daa-d29159d61df6","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":127,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"3c33d041-014b-4758-86db-ce23e4411dca","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":127,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"db0a63dd-6866-4553-a9e5-50d886325c9a","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":127,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"568f6b7f-844f-4972-9299-ca687ba3cb56","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":127,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"624b4986-3634-4686-9828-e935e10acdf1","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":127,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"29c7d650-5c07-4b8a-aa12-5189b09d6b49","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":127,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"72d38556-255b-4b48-9da5-87a17002b665","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":127,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"f38ea0de-1c1a-474e-8b34-c7532f83bfd4","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":127,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"464b54d3-6404-454e-9abf-91f1e802f07a","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":127,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"69b6f114-d41e-49bf-a636-060ef94e8939","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":127,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"8a68e9fc-e3d4-4e08-8aae-7cc08bf56e78","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":127,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"57a0b9c4-a228-4afc-9b13-b3f5f36bf7e3","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":127,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"b72ad11e-d983-43aa-ae42-fa8b8b22157b","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":127,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"5bdacfa5-c267-48b8-b28f-cd158d36acce","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":127,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"fb525a62-981f-48da-9228-5c920eaade28","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":127,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"7d7c4e93-862a-4ee6-aec5-61e7cbc93212","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":127,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"decb250b-3373-408f-863e-d8dfd64f70fc","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":127,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"fdcd13f0-f624-4693-b73c-1211a24df51e","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":127,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"a572d786-4a85-4b23-b314-36d4504aa0eb","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":127,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"34439da6-c693-4b6b-b799-4e376f902404","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":127,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"9966e5de-dab3-457d-9d6a-30ba73fcda92","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":127,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"30098f51-bdc2-46aa-a26d-7c1ac2c6ff64","block_type":"box","text":"adviser.","page_number":127,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"9ee688ff-8988-437c-9b1c-b1d89b9306c2","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":127,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"6bad1799-c387-4b76-9a71-cecf7fef1e1e","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":127,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"ac972811-7242-4a1c-8342-c012a7a560b4","block_type":"box","text":"II-98","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8de3d768-60d3-42b8-9e86-380712b0256e","block_type":"box","text":"NM0926U-5975843-127/228","page_number":127,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"97df2c0e-d484-47d1-8d3c-0be2e521bb4f","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":128,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"dc5120b8-6706-45ff-b81f-4bdd01aa83b0","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":128,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"eb0a2411-cfe8-4c6d-a37e-200bd81c6802","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":128,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"fc0e1387-ee53-4088-97b0-5a2643fadd86","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":128,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"4fdb1ff9-fcf4-4987-b94f-2b726c29ce03","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":128,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"02bdc225-653a-4ac1-87aa-81da86ba7d79","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":128,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"19442ef5-486e-425d-91d4-a7ca21518d0e","block_type":"box","text":"also be restricted from making additional investments.","page_number":128,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"c239a000-5009-4e67-9dc1-113d18582df8","block_type":"box","text":"In-Kind Purchases","page_number":128,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"6f224c23-3df9-47ab-a774-7f780ae9f1bd","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":128,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"b12544e0-266b-4100-9d41-9287429859e5","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":128,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"ce04235f-45df-4504-bcc7-0ef90346d761","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":128,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"1a224261-60eb-48fc-b760-837ed9a30a38","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":128,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"88d0b2a0-2938-4c85-85b3-7ac4ffaa94eb","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":128,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"69a0ec2b-c137-489a-9b8d-8d809b1a1769","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":128,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"b92a22c2-915e-4f82-b542-af7de1b418fe","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":128,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"991a1a2f-0448-4659-a611-2684393f5073","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":128,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"d2bf8d1a-49a1-4594-a78e-fbfb5eecd75c","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":128,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"d0864218-cb62-46c4-ae83-39b8f097b5fb","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":128,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"9b747e7c-2a65-48e9-9ac7-6d89aa564c70","block_type":"box","text":"has settled.","page_number":128,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"1196befa-2d17-4f07-be34-ea305f34fed6","block_type":"box","text":"Institutional Shares","page_number":128,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"ff589b70-704b-428e-a256-b2b3e1e63297","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":128,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"7cf1bbb2-98ee-4233-87c5-9c228753f20a","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":128,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"480a8fd7-860a-4de3-8fa1-8da25d526e43","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":128,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"56d58c2a-f87a-4292-a2cd-12747057682e","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":128,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"a30344ff-58fd-40b7-b4ca-42a556eab56d","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":128,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"8c74a6d0-2404-4261-9769-003dab2afc37","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":128,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"7f3d3a9a-4abb-4dd7-a2f0-8b3418d25914","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":128,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"be27bc04-591b-447e-ae36-ee0af231c149","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":128,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"0f639497-2769-43ff-b7fb-96e7f77b34d4","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":128,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"b243658e-d4a1-47bb-9c38-4b3c4cde9db0","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":128,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"dfd2e4bf-c0d4-41a5-9244-6e3b1f34bfa6","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":128,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"0122ca1b-ac53-4709-9c46-9d24418d962a","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":128,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"57c07950-856e-4d02-9c8f-efdedfb01d85","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":128,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"8b61e0af-eaf0-4268-a4e2-68fbe938b647","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":128,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"a10b516e-e819-4443-9679-53bbc84e9082","block_type":"box","text":"these fees and conditions.","page_number":128,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"fc992e9c-5d53-4934-a10e-e0430068877b","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":128,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"ca8ba8dc-c67a-4642-b5ef-b3a5cdb6bcde","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":128,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"bf830abe-4bef-4b2e-8bf4-043f45ff06fc","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":128,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"71654f03-29db-41fe-aff7-5bdb24a02d8e","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":128,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"414fa5c3-5b50-4ec2-9f47-5a15e73c3162","block_type":"box","text":"incurred by the Fund.","page_number":128,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"8439025c-d88b-4e0a-8cc2-9c58997741ba","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":128,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"387981ea-cd13-4f6f-93a2-9f42c0e3b15e","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":128,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"2f142020-4c57-4e77-83e7-9433e8d30e19","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":128,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"aaf09662-70fc-43b2-a91c-ee67131a6d08","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":128,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"c6162afd-c1fd-4ad4-b4dd-f45302024c55","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":128,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"573e3e84-1d74-4b41-afc8-58238ccc5a78","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":128,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"d6388ea5-314b-4706-b750-b1dd707d3ca8","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":128,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"88b267c9-e5c1-4d57-8509-28fd5b309792","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":128,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"93abec25-8170-4956-9c76-0d6a56bd559b","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":128,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"599b9298-fa46-4d50-8a74-cb8f1d617049","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":128,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"0e138f54-586f-4ca1-bd40-4091da6418f7","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":128,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"8d5d1935-818d-478d-81ca-413bb99a5e64","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":128,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"ecc7237b-6a6a-4509-b4ae-cff3f9a513d0","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":128,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"468dd5d4-cddf-47fd-8e7b-b7fb1f691a69","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":128,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"6d0edd26-d909-433f-aa51-cec5a1733eaf","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":128,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"fb153133-b242-4aea-9b2b-2cd8cc0d0ba8","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":128,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"2d91b60d-b836-4610-b14f-c5340d13bc06","block_type":"box","text":"II-99","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16c9ba61-4d0a-4dd6-8e71-e08476604520","block_type":"box","text":"NM0926U-5975843-128/228","page_number":128,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2d7e9390-0c0e-42a7-95df-c877baef24dd","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":129,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"f96bc818-c44d-456c-8548-57ed96a8e9aa","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":129,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"75df6dd0-5775-466a-b40f-8cfbc5a1800c","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":129,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"5bb61b04-69ac-416c-a90c-e515b2383efa","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":129,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"8cf0b677-0b04-417f-b1fe-d1158f6bf050","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":129,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"e195fc7b-2b72-4fd3-8da5-e6094f048240","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":129,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"870a81be-8463-49fe-bb94-c70875d259a5","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":129,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"8359bbe7-4871-4c2b-8954-fd854df59b3d","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":129,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"c9b65e6b-cb04-4a7b-873b-b7049a413b17","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":129,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"85378897-b407-42c5-84ba-4f96f2f1baca","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":129,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"d1005a1c-72ad-442f-8899-dd7224dca9cf","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":129,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"3d0f6128-ac26-4d81-8962-c8f03ecc8bbf","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":129,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"86ff260c-554b-45be-a0bd-977ab574e506","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":129,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"b5a32ff3-f55b-412e-8211-887f918c3507","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":129,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"bc00df17-9d17-43ec-acf4-abf9ddf873a2","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":129,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"5df1cf5f-4681-442b-af6d-967e681ac359","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":129,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"620bb80f-dd10-4321-8420-90adcc6a26b0","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":129,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"9600aeaa-4f73-43ff-b3ce-d1aba607ea27","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":129,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"760a1532-8d02-4fab-bab0-cae8c74bbe1d","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":129,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"63f16c47-61b3-4797-9d52-c20f9bd9b78c","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":129,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"db6557b9-8f65-4a8a-bf7b-266f29826f7e","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":129,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"b31072f4-fdef-4f99-9709-0f55bf8ed42e","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":129,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"2078b9ff-0b21-4cc3-a3ce-27e4138e925f","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":129,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"bd60ad5f-dd3b-432d-8850-dd5a6a727a6f","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":129,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"5e6e1bcc-9c1a-491e-a75c-c6de46c884ae","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":129,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"ed2f9b2f-e727-4be2-b546-5ff199a3125a","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":129,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"081ea100-3423-4888-be42-70ecce97ccbf","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":129,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"8725eb03-c8a4-4780-a10c-0f41b3d85cfa","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":129,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"77aff6cb-43a5-4255-9790-85e2aa6bbb24","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":129,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"797c3172-f2b2-4065-9f21-0d06fa19d277","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":129,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"51264abf-9836-4f56-be02-5b86041b75a4","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":129,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"8f171e06-4cf4-473b-882e-858b83dd1a8c","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":129,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"8c5922d5-89d6-4bd2-9edb-81a7f43ff4c1","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":129,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"c449a492-03fa-44c2-a4d3-97100b60eb0b","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":129,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"b4d59fbd-72f7-447c-bf7d-2576d6a2ec9e","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":129,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"d4dfa402-9e97-41d2-95bc-58609cf68a3a","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":129,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"b29cd350-05de-4e15-ab56-309a07fe55e9","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":129,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"1df88d03-0040-48bd-92e6-03e84be3899c","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":129,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"85af88f1-b67c-484e-a7d6-26447e365c0d","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":129,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"0c284087-fa3d-411c-b0bf-5eec20417da3","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":129,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"2e40fbd6-28df-493f-b548-9c860c896dd1","block_type":"box","text":"periods indicated.","page_number":129,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"49f0fe7d-f490-4440-8c38-4d8b3f094f04","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":129,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"96828cae-178d-4b14-a943-377f9481aa01","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":129,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"6815fe48-dc34-41e4-bc17-d3928b5a133c","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":129,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"18db7055-8c49-4cba-a128-b6a66a08baa2","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":129,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"4714329c-2d98-4f2a-8cd5-93a88e8726f1","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":129,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"26dbfeab-9b15-4781-be2a-dc814537ebda","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":129,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"88ea91fb-1526-446c-b977-534bcd9ee305","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":129,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"34f945ee-c059-4488-b138-b4dcdc6f3649","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":129,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"27851941-be50-4cd4-ae6a-37b23d98454e","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":129,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"241813e0-6ff3-4368-826b-c689e3b26279","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":129,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"081e565d-4950-4883-8597-42e225611164","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":129,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"eff09df5-1a48-4dd2-8a98-df92adc8119e","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":129,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"5e46d627-4343-4085-9bdb-ce1b86506a02","block_type":"box","text":"II-100","page_number":129,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a89032da-ba63-49ce-96f9-b3c5306a67c7","block_type":"box","text":"NM0926U-5975843-129/228","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"797d4450-1976-4ef9-8b10-bea95b54d05f","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":130,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"d10d7620-6295-4c2f-90b1-85f2afd065e3","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":130,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"536ff0fd-e294-4b68-a749-d8839b3115dd","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":130,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"76621713-560e-4246-9166-95fadb1e6549","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":130,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"8a442857-a1fe-4def-8235-496035458f0b","block_type":"box","text":"Reduced Initial Sales Charges","page_number":130,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"40ccaaae-9355-43f9-bf7c-0d0b91b8b581","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":130,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"f3e99081-dc51-4541-a633-ae45419a2ea5","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":130,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"39a37ffb-d8a5-4d69-ad20-6d2f11f161ca","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":130,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"8c78d05c-2ec1-4638-92e8-487e12e278db","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":130,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"8450920f-7bfe-4da2-bf71-d05ac44b1db9","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":130,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"d8de5f5d-1918-42d1-ba07-3a3501269e26","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":130,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"f2c9dc8a-9e23-4c0e-bc70-59ef4f17660b","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":130,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"93a203f4-c6dd-40cf-86a8-3a2af41e6d27","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":130,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"c0b88ee2-214a-4543-bde9-0fc072f25bb8","block_type":"box","text":"Reinvested Dividends.","page_number":130,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"f842478b-44a1-468b-8fca-477342f22219","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":130,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"5e65f67e-dac0-4931-a781-1e5321271f70","block_type":"box","text":"reinvestment of dividends.","page_number":130,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"0a610c9b-0cf1-4d59-8be5-74d7659b2bc3","block_type":"box","text":"Right of Accumulation.","page_number":130,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"2c9fb64a-8e91-4b6e-8d53-f98a26429850","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":130,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"474c2f47-1ffd-4a3b-b787-72431379f379","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":130,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"dc85fd45-44c7-46fc-af45-6bd5e8138b27","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":130,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"dff81fd6-fdca-42f9-80c8-777bdc5f9e2f","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":130,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"c88dddb4-2a18-4591-9915-aa638d4e5076","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":130,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"95e3cb71-543b-4695-8185-8826cb72ac4f","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":130,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"0d3cdc05-cf0d-4cef-b6df-6bc468f7f99b","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":130,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"38aa4655-99af-4b36-a2fc-095702b40952","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":130,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"37ce81bf-9d80-403c-8ee4-4fdf66ea2bd6","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":130,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"06f8d199-e33f-41fe-8346-3689d137d1c7","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":130,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"4890201b-0a13-4360-99b2-05f5bacbae2d","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":130,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"7ffcd8df-8dea-4b77-90f5-11b4e7fd8cbe","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":130,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"7baa8dee-1675-496d-8824-2ade6ae37c7f","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":130,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"3eb9ef5c-8a0c-4d12-a837-5d59c63e6e55","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":130,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"a1fd8c9b-8462-41ad-80f5-a7b54a6b1a28","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":130,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"c08dac76-8ccb-4280-ac2a-ab97761c1b64","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":130,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"69ff6eb1-e1e9-4238-9bda-a0addca02713","block_type":"box","text":"Letter of Intent.","page_number":130,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"b2e89b79-230c-4e66-88fe-a3e897f92ffd","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":130,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"f47f3ed5-67a3-433f-83e7-d10040285aca","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":130,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"5c7e45ab-495e-43ac-b9d9-0f1dcbde32e3","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":130,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"86be6c00-7ed9-4975-b2c7-c4836a3bac79","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":130,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"6d5aa3ce-b6ac-4946-b50d-df561f543a4d","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":130,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"f79ec1e1-d4e0-462a-94c7-b3b985edacd3","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":130,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"5bcc8400-a39c-49e8-98e0-a06d9d278b9e","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":130,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"e8211554-e192-4f87-813c-a898240f2b04","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":130,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"28ab9877-242e-4752-ac25-c87a9e0d5b5d","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":130,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"a5c4875d-8f16-4ece-a2d2-739552d59f33","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":130,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"bd82dc96-cefc-492d-8f1e-e51c7b41dcb9","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":130,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"8869180a-e342-4e9e-baaf-17d82fc550d6","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":130,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"a9d24ae2-1dcb-4cd2-9b7f-66759308541e","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":130,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"7e199c1e-15c3-4b44-bfeb-cfaec612efa8","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":130,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"398e4fc3-3d30-4d6a-9658-991c244a640e","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":130,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"5c16d551-4cf9-406b-9ec3-a17d18952ea5","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":130,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"a619a03d-736c-4edb-bcb3-8034441283ca","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":130,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"50928c47-d30c-4fb7-acd6-ff5ebbb58418","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":130,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"6949881c-f242-4cdf-85f4-56292fd874dd","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":130,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"2c2626b3-e5c8-41ba-9d8c-836b433ab41a","block_type":"box","text":"Placement Fees.","page_number":130,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"fe23e9e7-305b-45db-b564-8bde66ac29cd","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":130,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"cfb3e684-cc03-4a25-8341-b16455ec08ee","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":130,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"17c1630d-ee92-4dd8-bde3-1c6f3a3e4b93","block_type":"box","text":"II-101","page_number":130,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5160647b-6e36-4a2e-942c-877e931422ee","block_type":"box","text":"NM0926U-5975843-130/228","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f13a5641-035e-4195-9dac-1e4b0a0306d0","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":131,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"f044c4bf-16c1-4ccb-821e-442c684872fe","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"e8cd5361-14eb-4ac7-bc70-01fb9554b2a5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":131,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"c34af162-93f4-453c-aead-6b2c1ce39bee","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"be1eaef6-a231-42e5-9364-54cb8962e6db","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"b51b2feb-bfc9-46d0-b05c-4e8752ef8f8c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"51a372b2-8580-49cc-81bc-9f19197254fd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"acf20845-2069-43fe-b16c-5dc5f42667c2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":131,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"9ac5e767-1ed1-4050-a8a1-c1c3dcb27a70","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":131,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"62769a3d-355e-4654-95d5-3cb4a1c7fb28","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":131,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"ec8a9b82-5559-4de4-8208-d0e33743ceb8","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":131,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"e546b816-8404-456b-8680-cb079a7843f3","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"2e050670-29c9-4ccf-8452-10402a31004d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":131,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"32c38fe6-5b8b-426f-ae90-93364214d0e5","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"d0ef7ab7-6924-47fe-abb5-6cfc64252841","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"8c55b0e4-b55e-44a8-aa43-597daa7e1c7b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"43a20fc3-2abd-43e7-85fd-3c37695527cf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"42693bea-f0a9-4483-ad53-0343df2232b9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":131,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"f42c4172-0666-4599-b7a1-94eadac8c0f0","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":131,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"b5482c98-0ea5-4e07-9b18-b5f646fb6064","block_type":"box","text":"SM","page_number":131,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"89bfec9f-ef7a-4f4e-ad1f-1b9ec24b2ddd","block_type":"box","text":",","page_number":131,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"c8094782-fab6-4e0c-a160-51872146d314","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":131,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"bdeb36b3-a981-4189-a0de-10a2bdba909f","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":131,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"f41d17a1-6cac-45a7-9c62-ea1f98e2c7dc","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":131,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"53d04438-dcf4-42f4-a4d2-fdf81132c53a","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"97e01855-1404-4e62-8a33-23f3d542e4c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":131,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"827c8f56-8bf7-4eef-8d7b-792ca8a5a3eb","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"1ced59b1-1205-4d16-9500-d41d6f684b4c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"f133dba1-d9a4-4f2d-b9f5-ad159bf06bad","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"6b49cff2-62d8-43ae-988b-3550fb431524","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"a4d2ad87-5cee-4417-a767-9299bb62840f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":131,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"35d82c1e-c3c7-4e23-b819-b27e98b8d0b8","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":131,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"44611975-3712-44e2-92da-197e7ee4c6be","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"97ec3779-49b7-4a15-915f-7536b6edb20f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"f000bf28-8367-44b7-aa29-ec77a4296bcc","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"9287c4be-fb4e-4c07-b876-2b08d19ae817","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"db7101bf-f42e-4c48-9876-4439d5d3b1f8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"66da271a-0841-4b24-83c6-1b808b54f85b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":131,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"86f2ef38-747f-454d-85c9-3cc2867cf6fc","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":131,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"d9bc8117-77ff-446c-a1a9-5e47f671f162","block_type":"box","text":"may be up to the following amounts:","page_number":131,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"3fcc895b-e654-4520-acfa-097f5436ff7d","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"986daff5-7f7b-4d1f-a287-9f3f41963d24","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"d4593a74-7892-4070-82f8-7663a9a4c6fa","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"7eb3a2d7-09ec-4388-b8f6-22652931295b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"a93c883c-a87b-4974-8003-fbf4a768425a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"e0256807-4655-40ea-8564-c402e8508c42","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":131,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"96fa3187-c2c1-4d22-a06d-e9013b85116c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":131,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"331f4b1d-0ae9-4267-9591-48c892009a76","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":131,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"f132975e-9372-4fae-8b2e-df733df17e29","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"57ed6aab-dc86-4467-a370-3d525a21ead0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":131,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"09c6b05c-c595-4a0d-9d70-e47ee0269e36","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"06ca008c-e569-40f1-bca7-12dcbbe7b04f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":131,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"25160b01-40bb-4568-a07b-647a8108861c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"96ae73f8-a352-4266-877a-004dfab3c215","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":131,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"f7f2e479-744a-47df-b0a4-b77815f8db1f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":131,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"107d7c11-0fc7-45e6-a9b7-2dfb9084dc3b","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":131,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"d5db5780-d3a8-43df-8736-e3073eb6888f","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":131,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"e3210d3c-0110-4998-8062-06e78729a39d","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"a7bf6539-ffbd-46cb-8208-bd6f7d5e0243","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":131,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"592f6a07-6794-46c0-bb12-b60c4d3bac5e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"37a00fab-c2f8-4a32-b808-38f9249cdfea","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"5aa18ee4-b176-4f8b-9352-de8fba9f50c9","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"7156e7c6-290b-44ae-a377-3042e1b41b41","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"dac5d6dd-428a-4341-82c0-b506a16027c4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":131,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"d9dddc79-8de8-44e7-846e-1d01b367cc22","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":131,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"57085d93-53a8-41b5-b940-a3408aaa4678","block_type":"box","text":"$250,000 and above . . . .","page_number":131,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"a515166b-d432-4a09-8392-944a6d986999","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"f50327f4-4bf0-40e0-944a-d3ead9fc7de5","block_type":"box","text":"II-102","page_number":131,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b8f69bab-e53f-4f13-bbe0-9bb5f8d4d3a5","block_type":"box","text":"NM0926U-5975843-131/228","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b2b1664d-ec18-4837-9163-9f544fef7ce0","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":132,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"bdcba002-187e-4fa2-ad89-c4cda5e4fe7b","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":132,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"c5e2da14-e79b-49e9-a302-40bc30132223","block_type":"box","text":"the following amounts:","page_number":132,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"8c8020df-b1e3-4cef-a99a-5c914826d9a2","block_type":"box","text":"$100,000 and above . . . .","page_number":132,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"747d7db0-dc84-4e29-bb08-adfe22a9b98b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"ba124530-32d1-4d02-9e96-45417e275fd3","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":132,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"443ac5ca-fe93-47fa-892a-d9c52db005b1","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":132,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"90a11ba7-1b94-4ff0-a6ec-ffa46e36a649","block_type":"box","text":"$250,000 and above . . . .","page_number":132,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"5dd20459-8a14-41dd-a912-26cf4f8f1036","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"a34257fc-585b-4ec5-a605-50a7d440394a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":132,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"44648bbc-b496-4931-92b2-3714ddc6d45f","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":132,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"ec8943a3-ba70-4f5b-b81b-9da45f37e78e","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":132,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"f3b0afcf-2409-4432-b8f8-b291b03d371c","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":132,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"b0ea31b6-9f78-409f-be58-2cab14e3a8d9","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"8161d04b-b495-427b-af57-5d417a62acee","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"3a60e214-d5cd-46c6-8a5a-945b81aadc57","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":132,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"ed6ba85c-c75d-4911-98c2-04fac62ac93b","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"8e0d5c34-9d62-4a51-9e78-9c7b400d0bf9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"0d7f0f21-a8f4-4aa5-8fe1-943f3f6a3e49","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"b2243ddf-297b-4765-a878-18b4471958fd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"6ecd7d95-7407-4d98-8e94-4c4d5aeace8f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":132,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"35797484-c7ec-4b8a-b83e-c2cc23b9e3a9","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":132,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"72577ea3-bb14-40f5-86af-5ba5edc7e030","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":132,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"5e028ce2-4bf4-43d3-a08d-adf2ab9a3a8d","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":132,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"23e18452-4a04-4acb-b692-b4adf23b6480","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"e53309e9-f914-474b-b79b-2dd68bc6f670","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":132,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"dde6fa54-0286-4ec3-b581-a37aeb56083f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"5266ea82-478a-4cde-a61a-83b51d79f8ae","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"7244b4bc-9e45-4153-ad8c-a0506f80d7f4","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"56eef014-6e07-45ed-86ab-11ded4a6557b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"39232d6f-95d1-406d-9178-7d8c867fc004","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":132,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"fa9df8bd-c258-4612-846b-beedb478c93d","block_type":"box","text":"®","page_number":132,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"629a8278-1197-444c-a6d7-003035e1de22","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":132,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"74ee275b-d41e-4ca2-a5ff-b7e402eec1dc","block_type":"box","text":"®","page_number":132,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"ca7dcd2f-1783-481f-9001-b4b65087f432","block_type":"box","text":"Index 2035","page_number":132,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"7a28267e-ac98-442e-97aa-ec12f1eedc48","block_type":"box","text":"Fund, BlackRock LifePath","page_number":132,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"a37bf020-9cb0-4e61-b805-b49eb021671a","block_type":"box","text":"®","page_number":132,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"a4c5a0cd-8c32-4d90-bb6a-2ea9d17c6176","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":132,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"6484a2c9-0884-4ae0-9e26-473dca30ae38","block_type":"box","text":"®","page_number":132,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"6bd4f171-e318-49a6-83c2-5f43d40245c9","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":132,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"0e9f08a8-2cc0-4233-9a1e-7111d65ec7d0","block_type":"box","text":"®","page_number":132,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"bde5fa38-da7e-4437-8607-8eece549720d","block_type":"box","text":"Index 2050","page_number":132,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"4cd4ca60-8d5f-4de5-a9da-7ac4d9d81d7d","block_type":"box","text":"Fund, BlackRock LifePath","page_number":132,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"5b61a922-5fa2-48f6-8e50-7ca80b5ae504","block_type":"box","text":"®","page_number":132,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"715ea9e9-8151-402b-a5ea-53faedaa6f39","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":132,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"91821cec-fd83-43b3-9199-8dbedd9a961f","block_type":"box","text":"®","page_number":132,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"f3d18dad-ccdf-430a-bab6-c6889ddec97f","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":132,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"8dc2e1a7-eaa4-4904-9572-a1912b1830ba","block_type":"box","text":"®","page_number":132,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"b1b2299e-b442-4f72-a60f-abb9a6199e3e","block_type":"box","text":"Index 2065","page_number":132,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"5d2d9e42-d339-44da-9db0-f5833400f758","block_type":"box","text":"Fund, BlackRock LifePath","page_number":132,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"23c40b06-9ac7-4b13-85fb-6fc78c177932","block_type":"box","text":"®","page_number":132,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"1c8eb18b-7243-4d6e-9b8e-6e824378f18d","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":132,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"b08e7e4e-d3fd-44f6-bf2d-82c0654a1446","block_type":"box","text":"®","page_number":132,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"632538c6-bf40-4dc4-a0a6-5bf3b8b79215","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":132,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"d32419b0-87b7-4abf-ba01-d9a15cae4f79","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":132,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"bf25307d-77ff-45ef-aa6b-7c9ff768798c","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":132,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"17b48f62-59b6-496c-b149-865cb3b718d3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":132,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"ca8e20d7-3ea1-4674-b0be-8315bb2b2178","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":132,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"0092c1be-57e3-4c7d-a1b2-85338e73312b","block_type":"box","text":"SM","page_number":132,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"c6699a13-89b0-4b40-93fe-cdbfdac84579","block_type":"box","text":", the placement","page_number":132,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"1c1be1c7-212f-438a-b2b6-70647e1813ca","block_type":"box","text":"fees may be up to the following amounts:","page_number":132,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"260ddf57-66f4-4ea7-881e-6eb0e3c3f083","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":132,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"06f0a21b-5f5c-4ea2-87fa-f21e2d1d49ab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"5a6f0c19-2d72-4c83-9f69-7127c4e9fff0","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":132,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"33d1da63-2160-49c7-a204-472c082dcdc5","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":132,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"44d1c5d5-18ad-40ff-b18d-1aae1a22c41b","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":132,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"465a2b5a-f402-4f4a-b5d4-ce24abef6966","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":132,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"3d0b0f78-a85b-4139-8d76-ea33eb5e92dd","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":132,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"a808401b-9a26-4094-92e9-0bfcee4dd9d0","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":132,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"30fed2b9-4ca5-4049-8ae6-56475b0c051c","block_type":"box","text":"$1 million).","page_number":132,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"cbca1579-6c8e-42ea-8576-2d0463577781","block_type":"box","text":"Other.","page_number":132,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"46323bf2-6d25-4c35-a8d0-38b03433127d","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":132,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"dcd67805-fb21-4ca2-b3eb-74673a0a07e0","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":132,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"3c8cc79c-0b7b-4c80-a0fa-9944ffd3dca4","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":132,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"71c105e9-3a1c-42a3-b0b7-1cd4fafed54b","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":132,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"578f7226-51fc-465c-bfe7-a6acfd75ddd7","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":132,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"9ba53b3d-b983-4558-b6d3-4182ae10e7fd","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":132,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"18163c2f-a123-4a20-a639-91033b02f18e","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":132,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"6d82a486-be33-4c67-baaf-dfd4993df729","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":132,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"e3b4624a-95f2-4e4f-a949-2146ac33575f","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":132,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"97e93a5a-ddab-45e2-951f-f66cf221697d","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":132,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"15d862e6-9b31-41a6-bc74-815372d31a2b","block_type":"box","text":"II-103","page_number":132,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"44d365bd-cc4f-4d2e-bf9d-b5bda4f0ec10","block_type":"box","text":"NM0926U-5975843-132/228","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c43ff421-c0b9-4faa-b881-88bbd062e9ca","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":133,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"b4ba18fe-d8e0-408d-b092-2c9e9e6ab914","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":133,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"1034cd09-15ca-477f-bc4f-6fa5a6aa288e","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":133,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"6fc2ee13-7d57-47a4-9ddc-754a16ddba63","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":133,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"f4a100ae-06b3-441e-be10-733c024976da","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":133,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"de30eb8d-f7cd-4e59-8fc3-1c1c842adde6","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":133,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"94e2b557-e342-4944-9e86-eb67947b9295","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":133,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"9cc63b5e-c76d-4643-83c4-59a6918d87b5","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":133,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"06af0c37-a9db-407d-ab0a-c2907f3efe10","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":133,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"cd9e0c11-5ab7-4242-815e-6e53d3fa0e1a","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":133,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"7c81bee3-2cbe-46ac-8201-bcdc8b3969dd","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":133,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"9134fd40-6701-4e7f-a763-1215112438bd","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":133,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"b916e463-6885-4aad-8204-8631254d9869","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":133,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"c97318a0-c602-44b7-bd60-0bb5983be281","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":133,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"89de3315-ae5c-4755-a5d9-11338845095e","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":133,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"eadcb7a2-1dc2-4671-bc73-e8e32f5e96b6","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":133,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"9b8ecc25-ab23-4405-9be9-80127e451bfb","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":133,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"38dfeffc-9eef-42f1-a79c-1a606cf0c9e0","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":133,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"14547fce-5f55-41e3-b820-b3b1c2b7f8dc","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":133,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"c64cc1f8-dbb8-40c4-843e-ac017f189028","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":133,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"7427433d-d2f2-45ea-93da-189075de8b91","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":133,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"eda2fe8b-48e2-42b5-920b-7f8c7376adbf","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":133,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"ba061d47-fc1a-4644-ab44-7e928b060fbb","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":133,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"b63ec40f-f7ea-41be-9dad-db5af886dffe","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":133,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"d90f3743-41a8-4e3d-a162-f272f83577e4","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":133,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"00e15a40-0b21-4b7c-a771-175013c88a5a","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":133,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"31682d33-c4b7-4528-8877-73fbe3adab09","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":133,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"fe117f02-1e76-469b-9d0c-27a80e53d467","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":133,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"d8b7b4db-fee6-4448-b4c3-4bce55a48cb7","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":133,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"c48e5ab9-f541-46ab-b4da-3585c4d60253","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":133,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"bc368710-fcd5-461c-a282-12c1a4924c40","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":133,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"32ee272c-f8b1-491b-a349-52a139202a28","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":133,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"d469595d-8a89-438a-b098-9b477c5b657f","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":133,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"0a052c02-d654-4319-a760-be3ee9a69655","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":133,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"bb8b8d49-be30-4687-be9e-5f72b7531be6","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":133,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"bf867f5f-dad1-47f1-a901-d9a2320b9218","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":133,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"cf08fdfe-9655-4266-a59d-2fc450095709","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":133,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"710fb888-2376-4661-a38d-ce7cb10a74a3","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":133,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"cdba7ae9-11cc-4dca-bcb6-807da1472c84","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":133,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"d20c0ab3-0dfa-4528-9909-413fdec6b604","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":133,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"c2524ba7-575a-47f3-a2fc-717c30dc25e4","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":133,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"c50c371e-fce4-42af-8501-ed58e782fb77","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":133,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"19b13199-99ba-4a43-9b2a-47d36fd3150e","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":133,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"32f466a2-ea1e-4727-8c44-eeae0aa17a1a","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":133,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"8765cabb-c11a-4c29-8911-60fe10b221fd","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":133,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"aa480144-f754-4952-a100-eb0f57e0ffbe","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":133,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"bbea0f02-ea2b-47a8-b443-9e7a125e2c20","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":133,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"0f4e1ee9-005f-4a53-965f-8a4f33adca60","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":133,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"899e2f05-9895-48b5-91d7-b21ed2e530f3","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":133,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"bec9e264-5dce-44a0-b8e6-c6b4cae3b764","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":133,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"81af8d57-1f56-44a5-9b5d-b73473464ac1","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":133,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"933cbd1e-02a1-4abd-8ba8-3a325c7687a3","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":133,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"49eeaa85-96af-483b-926c-164ca497c708","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":133,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"0a9e6e6e-e208-483b-852c-cdc7604da643","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":133,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"c0c12ec4-63a8-4aa1-bf39-909306dd212b","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":133,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"6da9d9a9-c88e-4f1e-9a3d-51b4598efa72","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":133,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"faa70d41-c171-4b69-9a92-4ab33034e225","block_type":"box","text":"II-104","page_number":133,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4efb3c08-3147-455f-ab9c-5cf3063d8904","block_type":"box","text":"NM0926U-5975843-133/228","page_number":133,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d4f30d4b-0fbc-4d2e-abc7-5adebb97a793","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":134,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"733eca32-1c45-48fc-bf62-832240892d49","block_type":"box","text":"the absolute discretion of a Fund.","page_number":134,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"01c105dc-a108-4519-bb68-7462c61373db","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":134,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"02247a22-03a7-48ea-abdd-faec6da1f859","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":134,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"98f5426e-6f8e-4df4-a5a2-3aefe79f3444","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":134,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"513ff26d-e0db-4c02-8a87-f5123432aa1a","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":134,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"649bf2c7-8ec2-4d00-a9b9-93bbf6f11874","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":134,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"b8cb9b41-39ca-4e52-9aae-ab06ef10ddf2","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":134,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"38a7b060-36ca-47a0-9141-5275ee6e961b","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":134,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"6baf46e3-468f-419b-8d11-6817e824215f","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":134,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"47de47c0-6a79-4c74-ab05-fd16d9226da6","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":134,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"34d7c806-fffd-4426-bb59-194be56d1938","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":134,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"6b65f0e9-fb12-4bed-a648-76708a00839e","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":134,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"1ddded39-8a8a-4f57-8c01-3f81a8abd17e","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":134,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"6a82a205-91a9-4495-a77d-6a924302ae37","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":134,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"5f44385d-3efc-49de-a561-b70877fec62e","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":134,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"839802f5-75e8-4c6e-bff9-0378f5586c7f","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":134,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"8759b072-171a-4f2c-ae3b-7fec06f6af28","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":134,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"07a6b747-6093-4a13-a98c-e5f3f05d3baa","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":134,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"a800729b-823b-4edb-b482-964bd59a8fb2","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":134,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"07613382-e5b2-4719-87aa-07cc92a01308","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":134,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"26fbd65f-2992-4d8f-bfbf-82115e0a5258","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":134,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"53b1bc00-ae51-44e1-bbb1-47a4f4d731eb","block_type":"box","text":"public or private investment company.","page_number":134,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"3e0e3463-4348-4228-8632-13a2498867ef","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":134,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"cdf810d9-582d-4084-99ee-f2639f14c2f1","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":134,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"0819be62-9a9d-48db-a31d-41e8060af2b9","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":134,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"176599fd-1f4a-47cc-a8f8-5fd656feff1d","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":134,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"144a48f9-65a6-4bca-a552-73de44ad710c","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":134,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"c5c44d72-c4d8-42ee-9ac2-65f79a19b5ac","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":134,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"b64b8d25-e546-41a0-8dff-2b49f936f70d","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":134,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"d52276df-417e-495f-a7ef-ac8f1d6a8306","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":134,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"4843b3f4-a761-4841-8cbe-81012978a1f9","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":134,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"08982acc-812c-4125-ac7a-4d18be90987f","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":134,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"b4f94c45-c920-4ed2-a1ef-5e8ba18efe2e","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":134,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"7b011bae-bf73-4303-bb76-7305319e606c","block_type":"box","text":"intermediary associated with the account.","page_number":134,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"32119de9-6e9e-4a66-a4c6-7578951fd120","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":134,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"f2a14160-bbd9-4ed3-b751-05fa16f1a87f","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":134,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"6073958f-5305-488c-9288-756c5a5244fc","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":134,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"a46e075b-3b4e-49da-9188-53806d702cf0","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":134,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"e46fa7bd-9dfe-4c66-beaf-bcf8e30734a2","block_type":"box","text":"CDSC shares.","page_number":134,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"0c1430be-a5f4-43a7-8066-d4ddacf994ba","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":134,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"abcbd381-f0ad-4e41-bf0a-5bf9d4b13493","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":134,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"7ccb4182-9752-459d-ad7f-fa236ef764d6","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":134,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"236d3cbe-2cae-409a-b995-6e4f1e5bdd89","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":134,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"8601d33d-e8ec-4ae6-9af2-a06de60a330f","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":134,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"bca89bae-fdfd-4010-800f-905bb2793387","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":134,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"535fab2f-8de9-454e-acfe-dc73268bc0d4","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":134,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"903d7a2c-cf2d-4618-a0ff-93c81a3c2031","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":134,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"ec1f6d56-d7b3-412e-9715-2af8044ff656","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":134,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"f5b99ae5-bdea-4219-8237-99ed4213b650","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":134,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"e91ec105-9de5-4af3-95fe-7c4b4db54a3c","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":134,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"ded9246a-138c-4db5-8dcc-2e3dcdf78d08","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":134,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"9ced37be-e4e3-41a1-8138-a108d57e86f9","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":134,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"c03036c7-8489-4bea-a347-465e959eca1b","block_type":"box","text":"II-105","page_number":134,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4240d3a9-4532-4081-8ce7-50d0d2749932","block_type":"box","text":"NM0926U-5975843-134/228","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"eaf01425-8c3d-4782-a628-27690e6d8f4e","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":135,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"878120e4-dd26-4a0d-aebb-fbe23f2b8692","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":135,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"f6a74fe8-fe9b-40d6-9569-02721fcb81b8","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":135,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"1f6db5d0-51a4-49a0-8a0c-347d026a1bd8","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":135,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"506cfce0-4e12-4503-beb9-ccc69eed3400","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":135,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"3a346ec2-ca5d-40f5-9b51-269b18de5bb7","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":135,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"23de795b-a31c-47dc-9d87-13329d21d038","block_type":"box","text":"Investor A Shares.","page_number":135,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"87d77581-4844-43d2-be07-2a588493615e","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":135,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"7d19c41c-81b9-4dbb-b46d-5ca5327bed02","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":135,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"a58c94e8-b5a0-46e3-b6cf-735cbe956fd7","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":135,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"9ade01e2-f537-4be0-ad28-db165612b194","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":135,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"e701ef92-e3bb-4571-b7c0-2cd65361a6ba","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":135,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"b1fa8166-d818-405d-96ae-4fbbf535800a","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":135,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"867fcd43-f48f-4ae2-a897-196d9de6c82f","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":135,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"4755a5a1-46f7-4692-a377-c102b9808586","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":135,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"c714ae33-162d-4d45-9679-567ea5423b47","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":135,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"d80a5698-6876-49dd-b7d9-d5dec9dba5b1","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":135,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"25de12c9-b355-46e9-a466-1844e758ee6c","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":135,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"059f1a4e-4fab-4993-a5a2-eaa727cf0554","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":135,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"0a2f2d61-408e-4554-9e4e-0d3d89c75123","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":135,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"2d40c238-3047-4d58-8d7a-a126b8c1cb11","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":135,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"db9095be-cd79-4fbe-9f41-74914f58e334","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":135,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"d38af28a-a582-4d78-b9ea-dbc84a3a6f14","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":135,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"a3afc8de-f0b1-499c-91d8-b380e7dd0b68","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":135,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"a301e91d-8f88-4e9c-ada7-afe967001795","block_type":"box","text":"“Investor C Conversions”).","page_number":135,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"9749544b-ce89-4cc8-a436-be9688ce685e","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":135,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"3665435b-554e-40ce-961d-a5fa7a30643c","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":135,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"126a1316-326e-4b56-86a6-5b17a6a608fe","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":135,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"e4f1ced7-b040-4df2-a69d-3a64eae0a315","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":135,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"3e7b51b1-cdb8-48e4-94e8-5c17630c6154","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":135,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"143499e0-b6ec-4172-b61c-febbcda7e824","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":135,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"c692b050-2271-499d-8795-a1f51f84b840","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":135,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"5be96cc7-4a04-4f5f-bef6-ffae60d84257","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":135,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"f9011d71-d690-4e4a-abf2-168558dc7e3c","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":135,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"c9701fd4-d0c4-40ae-b3c7-cd777dece7b1","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":135,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"0742aea6-5b30-4e65-a27c-16adae69aed4","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":135,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"a1219da5-28e1-46e6-9ed5-cacc64e0e971","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":135,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"84175703-399e-4915-b994-4108c6a3b292","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":135,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"3a94e7b9-8ce9-438a-8536-56fecda40e6a","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":135,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"6384ed9d-34b7-46e5-8b9e-56c8fdcc61aa","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":135,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"0b733c4e-48dd-49a0-a1ea-e204a5901f08","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":135,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"44a84ccf-f7a2-4d50-bb5a-e76b8268ea9a","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":135,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"e7960204-a5a7-4896-9dfb-94ad6a5d7b23","block_type":"box","text":"redemption.","page_number":135,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"8807605d-b92b-449f-bcd2-d3703ff5aa7e","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":135,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"36aa4988-d5ff-438a-850e-2485b09391c2","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":135,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"e7a0e800-7d15-4805-9aa1-1c0d79943d4e","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":135,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"f9b33659-9cbb-45dc-b7f9-c55fa6e641d2","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":135,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"90ee1a6d-55a8-4fab-af91-a4c66dc9736e","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":135,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"da0adf14-f005-4011-859c-38c28ba51fbf","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":135,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"f8c633d6-068a-4226-9912-98a237bc959f","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":135,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"941a7aee-0807-409f-8564-d9776ba2dcdc","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":135,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"8a35af0f-01c5-4b20-b8e9-136e636de57a","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":135,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"fe064d6a-ffc8-44d2-9614-79d9927f7d1d","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":135,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"6110997e-ff9a-4bec-b06a-cd8f4255b4dd","block_type":"box","text":"II-106","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"03324d26-8c25-44d5-9f94-1524535ca3c2","block_type":"box","text":"NM0926U-5975843-135/228","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"409d4dc7-e186-4734-a123-95804859a731","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":136,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"386fba90-16f0-4f49-af15-12d011bf0d4a","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":136,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"1bfda1a1-61b8-4285-88ec-92eb6d1489b0","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":136,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"649a4df6-24a9-441e-93fa-ae2b1a44c5f0","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":136,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"79462771-3d1e-44fe-a2c2-7507b4095e98","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":136,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"dcebc9f9-60d6-421e-8d98-6f42a0252ec2","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":136,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"3852dbfd-aa5b-4348-acb9-c7eb35c208ac","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":136,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"430827e2-f2f1-417d-84b0-07c5e117f1d0","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":136,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"f50b8cec-9292-4a4a-8f24-a3e72b33a105","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":136,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"146fa7f3-2b11-4f84-aaed-27106370c301","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":136,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"22540e8e-ec7d-4708-aaea-be6251e53f90","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":136,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"a33709ab-21c8-4c8a-9e20-7ebc000dc071","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":136,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"f09527a5-ccfe-4bee-81c5-cad943423d81","block_type":"box","text":"Class R Shares","page_number":136,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"cbe1f379-ad93-4f92-b5d9-40e20b9e2b9a","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":136,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"c2edd7c9-9ac1-4386-ad83-dc684f66a7a0","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":136,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"5fbce45e-b1c8-4d93-a050-6b8c159f58c5","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":136,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"179f18bf-0e5b-435a-8d1a-df58619f97ce","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":136,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"bb3bcc67-9fb1-437d-96af-6e7dc94ef7e1","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":136,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"2c570b26-985c-4123-a11c-a71c3a9642e0","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":136,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"0824219d-7fa1-4195-8e42-46b2c0f0fb7d","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":136,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"25495804-7d8f-41fd-9b51-8de3da32768c","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":136,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"29631083-04f2-486e-aa7b-1e386bb1a9db","block_type":"box","text":"Class K Shares","page_number":136,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"d721e578-05d9-4fa3-ab80-27c61f1f9426","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":136,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"89f87e9d-91a4-4736-b899-b1a68b00a3f0","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":136,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"ee825dd5-22bc-4a10-85e1-b16b5ba53fe2","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":136,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"5914ae47-7943-47dc-b6c4-125ec67f3a9e","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":136,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"ff9aae52-8c76-4de5-8292-f32cb1be1fb1","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":136,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"106fcd4b-d697-4e53-acf8-f94a8d85563b","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":136,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"ba8cd8ab-0dd4-437f-9fde-f5f8d08330d2","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":136,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"7d55d021-4d1f-45ea-95c2-ef46ea08a7a2","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":136,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"b927d1aa-1f61-4df1-89b8-607f29c4dafc","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":136,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"2dce27fe-1432-4818-aa90-9ca2e533fbe5","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":136,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"19070d6b-07cb-4bfa-af70-7ff72ecaadf4","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":136,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"425b88c8-42dc-4cbb-9e20-4d0af5d83f0e","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":136,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"1e77c17a-cee0-473d-9da2-0bf51f2e8e2b","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":136,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"be5df9c7-474a-42f3-a872-e4d9d2dc1e77","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":136,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"9de3969f-53ce-41d9-94af-5fb32d84f0b5","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":136,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"c9114062-438d-45ea-b45c-5f1653b80792","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":136,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"acb1f678-60e0-4ce7-91cb-1e3d8349acd2","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":136,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"053143a8-22fc-4983-b78e-66994e88f679","block_type":"box","text":"distribution and marketing agreement.","page_number":136,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"cc037407-3784-4da0-b310-3c23817c2531","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":136,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"fe78d999-66ff-4bfa-92c5-366496847247","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":136,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"d1e468e7-a863-493e-ba9b-30e5c120954c","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":136,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"355a8710-e4a9-4c29-ac0b-8d335b4efba4","block_type":"box","text":"Class G Shares","page_number":136,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"e5e110cc-a205-4f52-be52-89fea892391c","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":136,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"08bf6f29-6e1b-4e9f-abf5-1f7585b70ccd","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":136,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"50963886-ad2e-4101-b343-8a3a2db02728","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":136,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"9f88b56a-d693-404f-b86d-cdbe66724035","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":136,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"c0b6a0df-4de6-41d9-9165-6f57f1a59544","block_type":"box","text":"eligibility requirements.","page_number":136,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"9ce7b70f-cf57-4938-91ff-8dadd832a05e","block_type":"box","text":"II-107","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"91e95206-bacf-4194-8451-bf9ef725163f","block_type":"box","text":"NM0926U-5975843-136/228","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1291ca74-a5c9-4a9d-93bd-a3bb8998e903","block_type":"box","text":"Service Shares","page_number":137,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"d4415247-5123-4d8d-992d-e62c934e0327","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":137,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"dd289d68-6dba-4334-ae45-7752359c2b97","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":137,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"08106ca6-e072-4f0b-a658-44272824399b","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":137,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"5f1f4690-01d1-4ecb-a25b-7a259f214674","block_type":"box","text":"®","page_number":137,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"4daaaaa6-cc20-4b1a-b993-c93f58351703","block_type":"box","text":"Fund in 1996; and","page_number":137,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"d8cabc49-76a9-43f1-94c2-95372b41433f","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":137,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"afc0f5f9-01d0-41d8-8e3c-ea5f784d0858","block_type":"box","text":"SM","page_number":137,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"43c0d855-f9e6-4039-9d07-fd764099505c","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":137,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"28ac1f5f-b2da-4775-b0e1-87f62f7a69c7","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":137,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"ba0c7fa6-63aa-4eec-b432-57fadcbb6632","block_type":"box","text":"BlackRock Shares","page_number":137,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"289f21fa-b737-427f-8792-4c67ef0762e2","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":137,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"a9de2a4e-bb37-4d33-8e9b-c94361c7218d","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":137,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"313272de-ff4c-4f67-99a6-dcc1c6e25495","block_type":"box","text":"fee-based programs.","page_number":137,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"1d4e6b70-5227-4445-b6e7-cf74b69bce7d","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":137,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"6433afc9-decb-4a27-a206-f1c4c523f8cc","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":137,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"0bcbbaff-0685-4da8-8621-b625d54ef03d","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":137,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"b425975b-c5e5-47ba-8387-3a496b003a84","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":137,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"09328610-a751-4526-825d-4ef3ab5befdd","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":137,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"986916a4-a3e8-4e8d-871f-0b318000d706","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":137,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"7264bfac-ba3d-40a1-be15-f1b66ef576a7","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":137,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"4b619669-4dad-4a2d-85c9-6adf266bc418","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":137,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"6ac673f7-b1b9-4e77-a9aa-64b46c9ab1a9","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":137,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"587b2a72-91e5-4fe1-ac13-9dc4c0a4d57b","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":137,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"087f0272-30e8-4cee-871d-5fb963b18d7e","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":137,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"4975ee1d-635d-4418-b89e-68348fb7f68a","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":137,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"4a69e8a3-51ed-45b0-8ddd-6f1f058d0b06","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":137,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"d9a02b33-efbc-464f-8787-052e621ca3e6","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":137,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"463b11dd-dd80-4324-a3ad-7b6c4d5f9b8f","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":137,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"8b2568ad-722a-40a9-b7df-a576bf3d566e","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":137,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"94d36ab4-eaf5-4cfa-99fe-41738a7236e6","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":137,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"c85f02d5-e30a-4ff0-8bc7-46054d378bb4","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":137,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"ba29cd87-7a6e-4455-8357-a6a8f6bcb17c","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":137,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"8b818b43-1224-4272-a28d-d6798a1308ab","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":137,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"64ea3e05-bb0d-4e40-bab0-f573ef56e8f9","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":137,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"c1bf2946-b9ca-467f-a674-ccc0ffe74c35","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":137,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"426d0aa8-3a6a-46d7-baca-18233ffc2408","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":137,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"bfee90b9-ae68-45b4-a0c2-0017e4033f53","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":137,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"f903f0f0-7262-4084-9dfe-de69ac788850","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":137,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"499d6fe3-c5be-4da2-bd73-4af16028ddee","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":137,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"73482c90-0657-4cba-b231-10fa032e7a04","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":137,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"f5962505-a475-4b5f-8520-29fb234ea5e8","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":137,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"47a05327-58e0-43b9-949c-bb381485393d","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":137,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"4736bd02-73df-4242-859a-e37156a3d4b3","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":137,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"10189ee5-bf89-417f-ac3a-aac76566d18d","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":137,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"63aa4983-fe03-442d-9a0a-2286df15a17a","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":137,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"37f89977-728f-4277-9654-bf92f1676ba3","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":137,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"69c7c0f9-4ccd-453d-a7ea-20994b50c3bf","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":137,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"e4ab0517-4bc2-4b07-afde-d7bf6b55c656","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":137,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"b51020d2-1346-42fd-aee4-11de4693413a","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":137,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"c233229a-37c8-4c2a-9f89-aca33aa8ccd2","block_type":"box","text":"compensation for selling different classes of shares.","page_number":137,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"93efb70b-d9fb-4d2b-83bc-973b9bbc0b12","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":137,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"93de5351-1e24-4ea6-9a91-6b9612310546","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":137,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"ae9a1f88-2c0d-49dd-89ba-1ed97405f095","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":137,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"7beb03ac-8c92-4eaf-b68e-53eee6558b22","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":137,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"060a0e0c-7f80-491d-ae76-becea7571f47","block_type":"box","text":"II-108","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"39c48d22-17e8-4524-887e-6809f72aebb3","block_type":"box","text":"NM0926U-5975843-137/228","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5048f5fb-b564-4d69-bb27-8fbb2aaa9495","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":138,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"784cc3b7-a902-45b8-97d9-fe5b4dc437f0","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":138,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"6661d5fa-d994-4186-99a3-48d234180e6e","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":138,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"8b5d5ac8-2881-4412-b4dd-0821cf9b6309","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":138,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"34e45952-5766-4628-9aba-c197bc804796","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":138,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"8966c546-4937-4e11-af56-41e67951bf8e","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":138,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"ac1cb921-0efd-4cf5-857b-2cdd43fadbdc","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":138,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"52c07bb6-9aae-4c70-a89c-ef43f8ef7bd7","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":138,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"92955c85-3c45-4419-b694-15b3eee40a14","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":138,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"caeaab09-0024-4974-95a4-acc13e8b2fbd","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":138,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"a37e2929-4ce3-432b-90fe-621228e4e961","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":138,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"cbef55fc-8af7-482c-a1c1-b39e63a28519","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":138,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"94023e46-2991-44e3-9df7-646ae2810140","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":138,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"a28d9a01-6991-44c6-9c9e-616174b5d364","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":138,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"8d9adc29-0fa3-42a4-bddf-bff62ade15e2","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":138,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"4860b4bb-ed4b-4ca6-88e2-477a2fa44803","block_type":"box","text":"easily accessible place.","page_number":138,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"562cad8f-2e22-49f0-aac7-c0b7e8819d7d","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":138,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"828f130b-4e21-4252-97da-a3b20e90d249","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":138,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"e4e36dcc-7644-444a-b770-e7231407cdd7","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"65813682-4be9-4884-a937-21a6babf141e","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":138,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"937a970a-6b98-4327-9ff7-cd2243d15f55","block_type":"box","text":"fiscal year.","page_number":138,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"4ed9bf60-1e6f-49f5-b2e3-e6348b5f7f83","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":138,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"8e637557-5441-4dc5-94e3-af863deedf20","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":138,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"3abf4fee-deab-49bf-add3-7440d8b5f6ee","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":138,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"7fe7c7ac-d4d0-461e-b359-8a1a915bddce","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":138,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"30c78594-8240-418d-a337-4c825d2a2a01","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":138,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"0fcc5005-d046-4ad0-b4d0-faf0f4d9e5da","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":138,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"5ab06078-959c-4314-b3c5-25221fb146cd","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":138,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"aa8a5495-59ad-46a3-86e1-883ad8a86889","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":138,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"08d11502-61f5-4613-9708-5f5ec617ae56","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":138,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"e154d1ba-d983-44de-b411-0955cb3766de","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":138,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"43ca6ae6-d2fa-4462-910d-1a1ba62e98f1","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":138,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"e81e5e44-a63f-4aef-83a1-c2a7203240a8","block_type":"box","text":"and Class R Shares of your Fund.","page_number":138,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"958165b4-8967-4c4e-85b7-76bab98972aa","block_type":"box","text":"Other Payments by the Fund","page_number":138,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"dc662983-77e4-4d0b-8ab6-6027dddbaa24","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":138,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"d0f0d3a6-b073-4126-adf9-d32ae5aa0dca","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":138,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"d2af5aaf-693f-4f52-90ef-9c29eb8cbb69","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":138,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"787d010d-5aae-49cb-a581-8a995e659cb4","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":138,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"a7deecdc-d838-4992-bbb5-376bfddfdf8e","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":138,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"beb12036-82e7-49e3-8a6e-ac3bdde93b5c","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":138,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"ee41f4bc-8e5e-4083-8508-a94914b747f7","block_type":"box","text":"of these payments may be substantial.","page_number":138,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"a7fa2ec6-4c73-4550-99ca-0e971b9b314c","block_type":"box","text":"Additional Payments by BlackRock","page_number":138,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"dc408688-6c5a-450d-86d0-66b03cf1dece","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":138,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"8406150c-6fa3-45b1-99bd-bc7c07a17088","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":138,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"f933e667-5288-46ae-bafe-0994cb87bd04","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":138,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"7cbd71fd-f0b2-4ea8-bbe4-87920a6a57ef","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":138,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"47ae028f-379c-4c16-8611-2dded6c865fa","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":138,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"cd0e1164-715e-459e-a08a-ee04f81c76d1","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":138,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"96fd9deb-d03b-4359-9ac9-4841853cee4d","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":138,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"4cef2f96-9348-444b-acb7-7c2a461ccec5","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":138,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"84d2baba-34ff-4841-b1e5-6fa7cfdc4c46","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":138,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"53a719a2-8c5e-4e74-8571-6f3dd7685050","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":138,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"b2a113fc-ed81-43da-b4b6-1c18e4aac90c","block_type":"box","text":"II-109","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a0fa6051-dfef-4ccc-b6b6-f5f53b16697b","block_type":"box","text":"NM0926U-5975843-138/228","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4422d3ed-683f-4717-a49b-630c3f9ece72","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":139,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"f7672f78-7362-4da5-a577-f15e1f91225a","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":139,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"56ec7fd9-692c-42ff-ac70-c84ef7b7daa7","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":139,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"b991293e-1591-404f-b2cb-b7b7274d6c0d","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":139,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"5b8a3040-40d3-41c9-a46b-e731dce96277","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":139,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"42e2b8bc-bc32-464d-987d-cb500ab5169b","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":139,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"d87cc9ec-2b21-4b9a-82e8-60058c438a7e","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":139,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"3d6bc035-ab6b-4b21-b6f7-d70bd6f4ec7b","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":139,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"9609d9fb-86ed-4478-b2eb-e87d19fbd00d","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":139,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"fb6f7770-8e42-4eef-a143-cebad30cf41a","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":139,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"b52756d6-8ecf-4ca9-b77e-100e10dc178b","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":139,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"b8a93a46-e027-4d31-b062-e886b5e6ced3","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":139,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"5412768a-67a3-4913-802f-20e8bfff2e62","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":139,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"1625e114-d4bd-4465-a671-41ea5bae0a5d","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":139,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"e2ad47f8-8a49-4eef-9d9f-4210c3e7d25c","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":139,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"881827ec-f997-4188-bd14-e9a8bf037923","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":139,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"8627de36-0879-4582-b4ac-cc059616d194","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":139,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"f4ee4679-c1f9-4553-86be-490cd96d1d8e","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":139,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"8d58647d-4ee8-4c02-96c0-4fabd80beb82","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":139,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"f9ba4ba9-149c-4dbc-be83-2ed463b0e956","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":139,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"19a95e3f-ddbc-4bf5-98ca-f4bd7b7fcaf6","block_type":"box","text":"Funds.","page_number":139,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"a1f8a914-678b-46ea-af50-299adf5913eb","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":139,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"3cfa5094-28af-4098-af71-6fd3e1dc691e","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":139,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"7cb1d7ec-0273-463e-88fa-93003b8736b0","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":139,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"f5a03c1f-e858-4870-bf4f-7a95bc708185","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":139,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"69c96794-ddb3-451c-a68d-1497d9ee83b3","block_type":"box","text":"B. Shareholder Services","page_number":139,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"be0ca7ef-0870-4885-b6ad-092b1d9aba08","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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Service Organizations Receiving Additional Payments","page_number":139,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"f75c2687-9312-4399-936c-a6ed7f4a5c8b","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":139,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"0334e39c-61dd-43ec-ae48-5f392caf3375","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":139,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"3a7acf12-87ff-4a49-8848-bdfb6bfd2a09","block_type":"box","text":"II-110","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"04e0366b-90cf-4853-9a7a-eaed8160374a","block_type":"box","text":"NM0926U-5975843-139/228","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"814deddc-b8f7-4953-a4de-a7377587da4e","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":140,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"9172042d-082e-4ed3-835c-fa3356db098a","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":140,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"02898165-02b3-4bc2-abce-a386cd27218f","block_type":"box","text":"payments and 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BlackRock","page_number":143,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"8efc1625-7ff8-4655-9116-6b31d2393cf5","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":143,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"1aab042b-0ff6-4a62-b1b7-04ac45b99f47","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":143,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"f29d678c-cdb2-46ae-83fc-fc951d2a387a","block_type":"box","text":"traded products.","page_number":143,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"630e9dcb-cb16-4668-814e-dc9b5a09759f","block_type":"box","text":"F. Conflicts","page_number":143,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"8badd88d-757c-4041-9f0f-1e4f7f9ad622","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":143,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"2515e036-07b5-4925-ba9f-e04cd678bc2d","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":143,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"ac390d41-6276-4e56-a073-1c3fc5368ef2","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":143,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"27fc7f11-aab8-4bca-97cf-6f6fc6fcbe52","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":143,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"63f7c4e0-5019-438c-997b-99eb4f53cd70","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":143,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"47b95373-0775-4657-93f5-cc3e407a4e11","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":143,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"e85ee1ba-a79b-43ef-9f33-0292c94c2790","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":143,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"5e1a6406-462c-4c1b-9698-38ac4c47cc57","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":143,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"5c6dbdf5-195f-4172-8d25-ac27604fa56c","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":143,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"ee5267ba-252e-4c35-8bfa-efbff02962b7","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":143,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"8dc7a0cf-c132-4ce5-9d74-2ef880f4072e","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":143,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"be6d9cca-87c2-4ab6-a78e-3775bf37f8a4","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":143,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"a5d84070-2d11-49f2-b628-68beaa525a88","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":143,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"746f5485-4ef8-4e13-849e-35bdbd655522","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":143,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"25656f37-007e-4905-890a-2b05c1f45d03","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":143,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"fe0449e8-1788-4f6b-ae53-28c50d827900","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":143,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"7b02d3c8-af73-487d-8be5-1edf36e8a95f","block_type":"box","text":"appropriate.","page_number":143,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"79f5a1fb-f623-43d9-9c99-93c891727227","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":143,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"7b70e9ed-997d-4599-af31-60bcdacbe45c","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":143,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"536c924c-e61b-482a-8068-04a3e4666239","block_type":"box","text":"described above.","page_number":143,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"812a6faf-b2cb-432a-8fc4-735f7e74165c","block_type":"box","text":"REDEMPTION OF SHARES","page_number":143,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"24ca05aa-cb52-4f92-a65c-fc5efcfe80b5","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":143,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"99e64576-1b49-4a1f-a155-e42df750657d","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":143,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"7b146db2-b9c3-46d5-b24a-72c1ac0a0f32","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":143,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"e967192e-c165-445a-9d17-2f820a1e00d0","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":143,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"07e68af1-8bfa-4ae5-9cbe-1f21bba828b9","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":143,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"83bcbbcb-2c56-4805-b9f1-f4c9563f13d3","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":143,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"a1ab9c05-3b74-4ee5-ba0f-64d98e70401f","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":143,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"4800be80-dd57-4fd9-a224-fe62e042606f","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":143,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"3b3d6b80-88be-4acc-9793-1917f0fa8460","block_type":"box","text":"II-114","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"05057002-cd36-45a5-a329-c6737bf01ca8","block_type":"box","text":"NM0926U-5975843-143/228","page_number":143,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d94f12e8-0c8f-44d4-8783-4126598a88bf","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":144,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"f1e7e191-4062-48f4-9dd5-aec086fa7a08","block_type":"box","text":"for any shareholder of the Fund.","page_number":144,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"04b12a9e-5ebd-4366-9755-c02390b3726c","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":144,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"0bb3c7db-59e2-4d19-b8a1-d30bcf8f722e","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":144,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"0359b467-ea17-4864-9aff-8a19153a7978","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":144,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"2b5c0dbb-d72a-4d91-921d-cd7e3dbe9786","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":144,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"77c1a0d1-6d9b-49f5-8db0-ed231de11447","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":144,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"06359796-cfbc-4497-86d7-88c7cc714f63","block_type":"box","text":"redemption.","page_number":144,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"fcc9d18e-c3f3-4bbe-81db-43db65c39231","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":144,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"e09d8f81-bab3-459f-9635-55c071dbe1e9","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":144,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"161dcdea-ea0f-42bf-bc3c-54c216ee25e3","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":144,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"c8879214-391d-469b-8816-e86293294add","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":144,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"3192a2e0-2d9f-4cbc-90ee-f07e666baa52","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":144,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"f6e2f913-7d92-4ea7-85fe-2c84a1adab5a","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":144,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"ee29d96a-ebef-4daf-b563-415d67cde969","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":144,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"d4ee1272-0ed2-4db5-a87f-60549a9dc473","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":144,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"611a025b-9c91-41d0-94a7-a1f30f8babdc","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":144,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"26fe490a-064c-4442-bd9e-44d7160c9c51","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":144,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"1977b5d4-ec85-45ef-8a60-0de55bc978da","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":144,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"8ce4ffca-c158-4b02-8ade-61745ea6ca08","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":144,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"0381633d-739f-494a-8300-fec13aadfa53","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":144,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"a87f8525-4c80-4e0e-adce-38c46d934d91","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":144,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"2d69afa7-ac78-4857-a6be-d96e1811149f","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":144,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"2cf8b2a3-db5c-4a75-a8d1-f16be65bb8c3","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":144,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"9cdac71a-b61b-478f-a39f-c60d4aa42d51","block_type":"box","text":"Redemption","page_number":144,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"1f93230e-0c73-40a1-bf75-5db318d7746c","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":144,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"52302b63-353b-4fd4-a28a-ea39e6ac7e46","block_type":"box","text":"Redeem by Telephone:","page_number":144,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"dc583c78-9fe4-42b9-b53c-69f0399ce478","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":144,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"8f76a8de-cb4a-48b1-a8c8-2956634ec15b","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":144,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"6b35a434-e370-4a81-b990-3a9f2f11b02e","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":144,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"2cfe74be-e6e7-4441-b1f9-4927c7e402dc","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":144,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"73dff938-49ef-4c90-9c51-b6939a9bb58b","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":144,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"f13b73f1-8ccf-46a2-8499-ac54938b4ddc","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":144,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"111628f7-e372-45c4-9a86-524ff4fe4883","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":144,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"d8fab9b1-f8ba-44bb-ab38-a57bdfbfd966","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":144,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"62e0b902-c4cd-4a6d-847f-cff9cc37cb7b","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":144,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"e5102cc7-675a-42ee-8f4f-8c87f6e71cb0","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":144,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"510c9345-e900-4fb7-b80f-68605d67d8d4","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":144,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"f8cb9db4-a382-4fbb-bb2f-b00b7e92fa11","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":144,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"4a6db840-c379-4524-95c3-4a99d823fcc2","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":144,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"f37c6146-beb7-4010-be80-ce4cf347b479","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":144,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"844371ef-f365-45df-bd24-28e4dfd1a5bf","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":144,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"889173ec-b777-495e-8813-33a5582409b9","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":144,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"d98b2d4f-0ac7-4567-a45a-4c844f9639c3","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":144,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"c7fa2974-fd88-4602-a86c-98194716dada","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":144,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"38556f48-1cee-49f1-bb18-40c09dc1dcbd","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":144,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"1d2d687b-e61f-4599-a362-6206f811570a","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":144,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"7676838b-d001-4376-ab94-448d5cc9bea7","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":144,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"ddc4e5c1-4d61-445d-b77f-3abbbfa72cda","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":144,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"5850a503-520a-4cdd-a1ba-b590e678bd58","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":144,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"25970afb-f5f8-48b2-8f86-8b94962b961f","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":144,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"6dd3ea73-b793-435c-b417-d9f2e0ee5ef7","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":144,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"481d30cf-b602-4dd3-a341-f26023fb6f3e","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":144,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"35cad167-b6f0-4098-839f-ee68d6a3f429","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":144,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"f63e4fab-c1ce-4f73-88f3-1c6e4ed85473","block_type":"box","text":"II-115","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"84740275-528b-4e82-806c-cb5b1ea78f5c","block_type":"box","text":"NM0926U-5975843-144/228","page_number":144,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"318a493d-a627-44f8-815c-c008d373c9a8","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":145,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"f943f0d9-c308-4ff5-8e47-3c4b847abb97","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":145,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"929eaab2-069e-4be0-8cbf-d811d5997529","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":145,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"5b123043-c6d1-49e3-b135-dbeb4ba61224","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":145,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"e55695da-bdce-43b2-bf09-bb60af4212ca","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":145,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"79da30ff-c40c-400c-a28a-d4ecd78e979f","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":145,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"03b772e6-a3de-4f63-ab64-606729beda6a","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":145,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"5287cc4e-ab0c-46d4-89a3-7044646d61d7","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":145,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"28d63d7e-3644-4978-aac3-b84f8a90a34e","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":145,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"b1476d80-d513-4a38-b4cf-1bf5ee552453","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":145,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"da0d3d9c-dfa6-4d78-9b51-817279c8bbc9","block_type":"box","text":"Redeem by VRU:","page_number":145,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"ea9d1dcd-dcce-42c1-ac82-31e639db9189","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":145,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"3827d159-d5e1-45fe-ab62-970bc39fa4aa","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":145,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"3c1010b4-f5ff-4d63-b386-bb1206960cb1","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":145,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"dcdbfb98-b509-42c1-894e-c837ddb1a743","block_type":"box","text":"Redeem by Internet:","page_number":145,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"840e58bd-e9c4-4183-8cf4-24265c4bf674","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":145,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"3d73f672-18da-44e5-a72d-4b206fdd0982","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":145,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"120b33d9-3ecc-455f-9989-b67a9a736b2f","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":145,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"3d900595-3f39-452b-a8a3-4fb6ef02a724","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":145,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"ddba8504-c75c-4f8d-a5d9-beca0c24e0eb","block_type":"box","text":"institutional investors.","page_number":145,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"8cac657e-7015-42f1-a75e-81db3e16f8dd","block_type":"box","text":"Redeem in Writing:","page_number":145,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"5352fe92-e027-49ba-abba-b074c6b28027","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":145,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"1e9879ad-4714-4209-a1a6-6a655b582c75","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":145,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"f3188c35-bc70-460b-a3e9-cc3bf2fcdb57","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":145,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"ac49d445-8fcb-4659-a0b0-2e09b7dea55d","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":145,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"98f13d4b-4947-4a81-9088-3125190f77b7","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":145,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"f1f03bbf-b4e6-4120-a74c-3086a6b5e34f","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":145,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"1e604328-2b49-44be-8ed1-b976017e5e42","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":145,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"91b540b5-77e4-469a-9946-4b5923f1471c","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":145,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"0ecfa905-13d3-48e0-85ee-960426d3850c","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":145,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"18496dae-78f1-4690-b4cb-d22c0f501d44","block_type":"box","text":"or wire to the bank account of record.","page_number":145,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"ae95d2a4-74f0-4c70-bb4b-194fad31edde","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":145,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"ac630fcf-47db-44b4-ba3c-9cce25d852e7","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":145,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"42c341e8-c408-4871-b079-ee4df2b41b1e","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":145,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"0ac94498-b9ef-498b-9bd9-388ad2e47cc1","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":145,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"e46b794e-6e55-4102-8c95-423716f28c4e","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":145,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"b3765bb9-7a6d-423c-a6cd-c5c44ec4edc6","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":145,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"6564a75c-4b10-4af0-b3bd-8f5249a7b60c","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":145,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"d0cba6a2-9e7e-4845-9bed-5b14380872c2","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":145,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"08ebec3c-7b31-4ad1-a8c5-360a5045b59a","block_type":"box","text":"redeemed by the Fund.","page_number":145,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"75c57320-8db5-476f-be19-9b8e0d163eee","block_type":"box","text":"Note on Low Balance Accounts.","page_number":145,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"bff527d8-98a5-4c71-90d3-7562c9485769","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":145,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"35db221a-e189-41e4-be11-a76b1508a61a","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":145,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"f5aa690e-e6c1-4def-953a-3a3ee20f3e7c","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":145,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"8f883c79-b214-4cc2-96ee-8f0d05d63bb9","block_type":"box","text":"for any reason, including market fluctuation.","page_number":145,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"1d3fe0ea-5980-4512-a558-929ca80b5db8","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":145,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"7d3e2126-2381-4c8d-94fc-759ac850ffbd","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":145,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"40b1ffb6-57db-4bd3-8dc4-14456e028bec","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":145,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"d87204ff-97b4-45db-9e5a-9dff435f1f39","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":145,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"66f08d42-30e7-4efa-a5bf-ff0ade60670c","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":145,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"7913f604-0c20-44c3-becb-f734eaa51ba6","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":145,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"70026741-9149-4ce9-8f2e-45fd34c6d7b9","block_type":"box","text":"Redemptions in Kind:","page_number":145,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"bb5e0491-5ec3-4ab5-bd36-deface4a300b","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":145,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"aabeb9f7-c56e-4f24-8393-b7c49aa317e4","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":145,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"e1f95fce-6200-43d9-ac94-25be8f786da7","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":145,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"eda614e2-a15e-4632-a482-03437b793f1c","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":145,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"f6548079-5469-4363-8a9d-b9ea959aa3e6","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":145,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"dc17be76-0421-41ec-8213-49f0a0fa0019","block_type":"box","text":"II-116","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"90b17d3b-39d6-424a-891e-fa54ffa7b942","block_type":"box","text":"NM0926U-5975843-145/228","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"966b50dd-4766-4cd3-bb06-b458c2a654d3","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":146,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"206bd05b-22ff-442b-96ed-f99079d77eb4","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":146,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"101d74ca-7ef2-4272-ace9-aaa699e4c24c","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":146,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"2ade588d-5276-4826-8045-e057aad5ca21","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":146,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"fa66e3f1-e858-4952-858d-000b887b6134","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":146,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"f9464fd8-a59d-4ca8-b548-a56f6bdae950","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":146,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"edbb0333-602a-474a-9787-4c768362a184","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":146,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"8b1bd4a9-c4ef-421d-9b40-85e10cf0b11f","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":146,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"2a6291c6-6852-4feb-befa-bd9aa6c5ce18","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":146,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"36cb785a-22e4-4686-817f-aa5a4f5cff17","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":146,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"ddd4b488-0951-4c12-9134-042c314b1638","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":146,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"56688c98-df5e-4d4d-aafb-5f64e7f13fc1","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":146,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"30dd261f-3eca-401c-bb91-b3db310a559f","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":146,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"9d5591a9-c127-4118-b4ca-0e1203f262a5","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":146,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"51cbe9c0-77b5-4f88-8a78-2eb93a8c1782","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":146,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"9a5284f0-1722-426c-be92-5130032ea6ec","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":146,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"8dbe85d6-67f1-46c9-82e9-d47b1be5e950","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":146,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"3666031b-2546-41bd-b074-c1bf6eb2f439","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":146,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"6a0eed25-be0b-41cf-a661-a91ab36714d5","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":146,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"25a5f340-c7bf-4ba5-af7e-35c945e651ae","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":146,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"185dbf9f-bbc8-41e0-bc5a-e7c3d726b711","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":146,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"c6491b29-ff92-4179-89dd-dacfeedb5cea","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":146,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"91a0fa30-85a7-4581-9a29-bfc796bbf3bb","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":146,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"a6c2700b-f599-41d5-8551-e3cadce6f451","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":146,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"f93802eb-75fd-42bf-87b7-49cb294fe3fa","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":146,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"16439a7d-aed2-4474-b052-bb15fbe77d3e","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":146,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"9436aece-1708-423e-beb4-5e0b44fe2620","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":146,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"a4988f58-d6f2-411f-901a-0f845bab8cca","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":146,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"03132e3e-e081-4035-b04e-372155266a0a","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":146,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"e9ac1467-29d5-40b0-8413-5c4a031ef7ea","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":146,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"534996af-6412-4e48-b514-1b244538e6c4","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":146,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"be61fe33-894f-4815-847e-9f0b7698dc2b","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":146,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"2d7a34df-6d9b-4dc9-9ed2-01541dafee62","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":146,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"0085d82e-852d-492f-904f-b76864265f00","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":146,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"743823e0-c980-4592-9c8d-e7f7708de079","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":146,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"7044f9c1-637c-41d2-bec8-485540d16630","block_type":"box","text":"Repurchase","page_number":146,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"f1b943ac-5ea0-4e58-bf7e-e0ca3e642da2","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":146,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"3f597d9c-8c3f-4e67-835c-287fcda1f3b2","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":146,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"98637abe-991c-453c-9d15-18b011540a79","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":146,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"561bdac9-044c-4a3f-b66e-b0e541b902c4","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":146,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"bb7fafdb-04b6-48db-abde-01ef67c57fc0","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":146,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"02eb606f-a755-4e66-b381-c5df9c7c0bcc","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":146,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"2835c51c-bfc4-4a76-b270-800335fb8ca0","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":146,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"3122a395-dec4-4bbb-9413-f504e8e8aa2d","block_type":"box","text":"next business day.","page_number":146,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"c785c07f-84ba-4fc8-8159-7390e3b43e43","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":146,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"fccfd783-3b6c-4839-9db1-e1cb17902f4e","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":146,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"055aa255-62fb-4aeb-aa88-c7691567ec8b","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":146,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"be1be05f-4477-474c-b27b-7afce20bbe88","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":146,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"928b17c9-89ce-4cd6-9be9-7e8f0c6076e2","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":146,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"3d8e46f5-66d1-4401-91f9-b9be4e643480","block_type":"box","text":"redeem shares as set out above.","page_number":146,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"2e777fef-bdc1-43dd-a0f0-a4f8a4d87817","block_type":"box","text":"II-117","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8e7e67d2-059e-43fc-b32e-220f50d5451a","block_type":"box","text":"NM0926U-5975843-146/228","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6e85f91b-83c5-447e-a89a-e023e9435ec9","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":147,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"7e36e898-949e-4bc5-885e-78815f3d1a81","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":147,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"46524a19-1646-4603-912b-2e07f68b9098","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":147,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"88337538-c3ed-4099-b50b-ea4cc9bdf386","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":147,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"90ea6bb5-212a-44c1-9a39-991396288325","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":147,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"5a7d7d8b-b5c8-456a-9ce6-3aadd3863f3e","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":147,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"67fb312e-3962-402d-b491-d0cc62794fa3","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":147,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"a800f31a-93e5-442a-be68-1c93596575eb","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":147,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"1d4f0c0f-2d9e-40ce-a9b2-9e27bc7f4003","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":147,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"73ae5f0b-7651-4b95-b865-238075a2a44f","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":147,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"c4749b59-8d59-46cd-acfc-c72174fa04e2","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":147,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"09e8df77-9b18-4946-823e-c09fc9592ceb","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":147,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"12b5f152-b6ee-4318-9de8-cc4dab283361","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":147,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"31047786-fa97-4d8e-888f-a5f8b351a08a","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":147,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"3e5b2dad-6dae-4da9-8acd-1d08eec71c73","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":147,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"3db6f21e-38d8-48c5-820d-a3d29f8f7e97","block_type":"box","text":"Investment Account","page_number":147,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"3a87ed6d-8ea1-4c82-a5e9-b189af566c8b","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":147,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"10fabef5-9380-4010-93c9-44ddeb8787df","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":147,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"35453ea7-7492-46ff-b507-16cea169f89b","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":147,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"ef673651-0a74-4c80-bce6-685ae3f9c2a2","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":147,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"a946bd7c-2b67-42a6-a53a-7e4399cc718d","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":147,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"d3f4da53-5fce-4575-ada8-3a2988a62fa7","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":147,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"00064103-818b-4d8d-961e-8fab3a2c58d9","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":147,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"d6e0ebd9-33c7-48e4-a5fc-76a4bcda9d3e","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":147,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"a42d87d5-9797-4999-986c-bb3bf1c68cf7","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":147,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"0030aa6b-802e-4e4b-a514-fb1f1df99e91","block_type":"box","text":"automatically at the Transfer Agent.","page_number":147,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"f073353e-80e5-47de-93a0-23560193c7e3","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":147,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"b79088ad-e7ec-4f67-bf6a-3e6c70ba41c3","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":147,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"83f2b006-6267-4748-bd62-d8a7d0c42b0a","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":147,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"4ebf9c1d-ad93-4457-8e20-74d1885a43e9","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":147,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"aff06a99-407d-4de7-9efd-c6e3e23d4813","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":147,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"c591875a-ed0a-40e2-b416-23f801e3e3c4","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":147,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"67d06de1-2438-463f-aa18-90f576a8bc78","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":147,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"d7f9497a-36dd-485f-a44c-5f90758f1666","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":147,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"cb36d574-cb39-4222-a2c3-dc47f2d20faa","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":147,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"6ecd1861-ad83-4f36-8bba-8c009564494d","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":147,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"a256d0f6-53ac-40d5-9630-35b2131c1453","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":147,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"335f2fe8-ef98-46f6-8e05-0b9355793e4c","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":147,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"40243bf4-9dd6-4649-abfe-6696d4e5c7b5","block_type":"box","text":"issued.","page_number":147,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"1420131d-4198-48b8-b099-88a4bc09e6d9","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":147,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"369cc709-b39b-4f3a-b1c4-354c84a7ed34","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":147,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"817225ca-9a84-4fd9-94a0-8a2b51c78993","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":147,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"575bc6d0-d4d8-4c20-85f4-e756a19d7016","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":147,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"ffea2b92-64d2-4f25-8260-b0e1b9d9d804","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":147,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"0c4c1f74-4ad0-43ea-accc-f36540e09e9b","block_type":"box","text":"Exchange Privilege","page_number":147,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"b0bdfcc0-ac35-481d-a274-2963ff93a8fd","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":147,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"f53550e3-8ff1-4a12-a85e-4558fb54d740","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":147,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"7986fa9e-96f7-462d-b4e2-ac5a3519948e","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":147,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"870e959a-64fc-475a-b574-f7bd016bd2fa","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":147,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"79150f41-56e4-47a9-939c-4a6c4853439d","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":147,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"2d3d8e1c-96be-40de-bffd-4aed813b87bc","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":147,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"8ed9d702-47da-4a7d-bdcb-ce32c3559d76","block_type":"box","text":"II-118","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dc025b5e-8bd6-4775-b44d-14a2d3737645","block_type":"box","text":"NM0926U-5975843-147/228","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"964d2080-2e51-48aa-a1db-d3a86f958478","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":148,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"bf0dcf80-9e8d-41b2-8ec8-2718ec564ccf","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":148,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"f62a545c-2dd4-48de-acad-dd18a9209563","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":148,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"96615412-08ac-46ac-ad50-f4ae64898143","block_type":"box","text":"Institutional Shares","page_number":148,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"a8c45883-491e-4e7d-9bad-9153f1980ee1","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":148,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"18fad1e4-748e-41d0-a4fc-0c9aafe1b99c","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":148,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"66d74d90-fdf0-4d22-818f-c64312468b2f","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":148,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"961725f3-9326-4ee7-b470-e7398566c989","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":148,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"aec997a0-e8ba-41fa-9a34-cdd8d54c73e1","block_type":"box","text":"for Class G Shares of other Funds.","page_number":148,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"d0f49380-4b1c-46c3-b273-9c8c6ed81a28","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":148,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"0b7e828b-cae3-45d0-91b5-d22563406b82","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":148,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"43bef6bb-b86e-4ff7-9705-06c52d5ba947","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":148,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"ba7e5fda-781b-473f-90e7-6f952a88b774","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":148,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"1b7cdc26-d9f2-43d4-8144-a60fb98aea0e","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":148,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"36e2f140-c852-42d0-b344-47ccae11edc3","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":148,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"0d878e6b-9304-43b5-b9f2-85477e514906","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":148,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"85f98096-5869-42ec-a5fb-f2774ba591cd","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":148,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"a6e77959-83a4-4492-8e4d-41c228518e9d","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":148,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"394e748d-c499-409a-bd65-779ba6e430c7","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":148,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"888a8300-ddfa-49ca-8a7c-b6a2681ec172","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":148,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"d112cfbe-b137-44b2-b3a5-9464ee75be0d","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":148,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"bef8bc47-e41d-45e1-94b7-43ec3c1a193f","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":148,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"d0f1aee7-6272-48fe-a716-36f54e524c09","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":148,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"b70d0853-53aa-46e3-a80e-509b62212d8e","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":148,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"c70971c5-b296-4913-9939-5e59a9d01d48","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":148,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"df7cbecd-e9c0-4bda-8d77-b3fc5342bced","block_type":"box","text":"Exchanges of Service Shares.","page_number":148,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"e8459251-e674-421b-8f79-514c5e488a07","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":148,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"a69030f0-cfef-43e9-8eb7-8c6ad4eeb484","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":148,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"4f2e26bb-2bd0-4a2a-97c5-2a176517e884","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":148,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"811db2f7-be86-4714-b801-01f2db2388f8","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":148,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"bb1633b2-447c-446a-bd67-ac9af6a750d2","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":148,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"9117ce32-3ce4-4a97-aa78-a386294b8d2b","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":148,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"a112c493-7068-4d2f-a279-5f2a712088ed","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":148,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"b8caa5e4-c48e-489f-ae8b-790a7fcf8822","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":148,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"13a3d6d8-a136-4325-9d4f-2464e2739fe4","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":148,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"5bddfdd5-0f9c-4f27-8e7d-e209c4380be8","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":148,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"27bf4a9c-80bf-4e8c-98cc-0c759b9d1e0a","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":148,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"5c30fa02-61ff-4bc8-800b-f079cb27f9a9","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":148,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"08a50fa3-e183-4885-b062-a2c17ecf43c1","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":148,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"0eb15656-1af6-4d8d-af6b-6180b2d08fd5","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":148,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"b1c09255-b588-4c55-b556-93b4305bdb2e","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":148,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"3bc93d54-53e0-4bf7-9da2-176c28bcef9a","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":148,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"bd54661f-fff1-435e-8ea8-53b99302730f","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":148,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"d75de0ee-69a7-4aad-96a1-3ce235193bd4","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":148,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"4735cc18-2ca6-48ba-bf77-a32c6af0bd41","block_type":"box","text":"exchange.","page_number":148,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"c9369d1a-28ad-474d-ae52-4b8251d2de9c","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":148,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"b0f8662f-d034-46f9-abd2-4eaf24c9a9e8","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":148,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"8aba0b47-fe79-4e68-b7c5-7987309ae820","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":148,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"f2fd0775-12d2-4a09-bf4c-2feb44631a4a","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":148,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"4bd2cb8d-0014-421a-8f35-79f003cfde62","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":148,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"910f2ddf-2003-4455-a1a9-e24d740544f6","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":148,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"ff769fc4-32a8-4c6d-b8cd-3294c44ca073","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":148,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"33d0a412-7618-44f3-95b4-cf97fde7c83f","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":148,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"edd76ec7-4eaa-4d56-9a0a-d2a63c576cca","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":148,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"e89838ef-acd3-4178-9c02-458d9ba11847","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":148,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"e09f3ed9-1fe9-4a7a-8fb2-844ee069a81a","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":148,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"0a389d27-7c9c-490a-a394-b27addee1c08","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":148,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"9654d506-b47d-4a13-8597-898285c88c95","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":148,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"6ed2cb86-2861-4db5-9976-25cd398206be","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":148,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"72b6db71-2b81-4185-aa74-2a39f3461732","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":148,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"0e76d240-907e-4c8e-8d83-a365062f50f6","block_type":"box","text":"II-119","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"73fd7348-1852-4b11-a093-e9484270f653","block_type":"box","text":"NM0926U-5975843-148/228","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2bffa0f4-b417-49eb-ac2e-c618ce6b9c89","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":149,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"faca45b5-a093-43d1-b868-79f4e0cba62e","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":149,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"c47ec7ad-94b3-42f2-a731-fe1da30c0706","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":149,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"bcfa206b-0e84-4150-8349-65033ce5b01b","block_type":"box","text":"Transfer Agent in writing.","page_number":149,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"4765b6c6-0b7d-4fd1-81ef-b982280bb38d","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":149,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"7978cc54-9f77-483d-bf09-e18e9e25ec60","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":149,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"02a1889b-e7ea-498c-b9f8-042a20f86399","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":149,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"4577abc3-b955-44ef-a878-c37c7abff3b3","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":149,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"d1a95e13-7a22-4c34-9f0a-22a6dc49d5e9","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":149,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"2511bdef-c798-400a-aa06-bd108aed866d","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":149,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"1a271dd2-3398-48b3-bf4e-d9e3cb133058","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":149,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"babbc60a-8b38-4523-8868-e749fea0fa15","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":149,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"1fffcdae-bb07-4b53-801a-a86826c9dbb8","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":149,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"1bddddbe-8819-4da0-b44a-7e13af96cc58","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":149,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"a465de4f-bf67-4d87-9416-23181e817581","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":149,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"a2908b8a-70ac-442d-9ad3-94ee8f7bcbf5","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":149,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"42ca4aaf-1fb3-45af-9a0c-e4d04bcc5fd6","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":149,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"a90b0434-a2f8-4fcd-9dad-646b2ff52ac6","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":149,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"6b4ceb5b-6f74-4938-8434-e2e2ac790bdc","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":149,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"5089ed12-2d4f-4a48-9565-e98bffdfed09","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":149,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"f61544dc-e550-4936-9a19-cdda820eda6a","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":149,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"02b462bd-a6c6-4d74-9acc-8dc95bc2ce89","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":149,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"72486773-7fb6-4140-9c65-8bed4e9fc656","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":149,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"dc103d39-b235-455f-b5e8-ad197b58881f","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":149,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"8056bc63-406f-4133-bf1c-435ea5f18a4f","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":149,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"a13af5d4-0633-47a9-87e9-8caca19ceace","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":149,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"61c20508-5510-4ced-8264-1cdf2ae6ddae","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":149,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"cc33f6c8-12dc-4ede-b752-1e55a7eba3aa","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":149,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"10fd7fcf-3c87-496c-bb66-88703204fc29","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":149,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"73be796b-6e60-4d37-a1a0-27a890428e74","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":149,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"92d89914-cf59-4bfd-a7c3-ed29f5d85208","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":149,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"f863f807-9f86-4280-a692-0e857bb4704f","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":149,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"bd72027d-7349-4b22-b422-ce79c544899e","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":149,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"aa2dc416-f2c5-4f8c-a0ba-8ebb12fae61d","block_type":"box","text":"may be distributed by the Distributor.","page_number":149,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"3ccbb598-be3c-4ca6-b5f8-b831743c824d","block_type":"box","text":"Participation in Fee-Based Programs","page_number":149,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"c7699886-1689-4d54-b270-b9becc9f48bc","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":149,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"ee54a106-63c1-41a4-84e5-1767e8e433b5","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":149,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"57984257-239a-4d7d-8b36-f8aa3c17001a","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":149,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"af2a8825-8f58-470b-9e57-f8e47ec39ad5","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":149,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"2728a2db-7ef9-47c1-94b0-bdab93118cd6","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":149,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"688c92db-fdc0-47db-8587-e6de37ac2d49","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":149,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"5597bdb8-f9fa-4fd4-8ea5-35b4fc251065","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":149,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"5c154d83-41f4-49a4-a1bd-40c0c75a86fc","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":149,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"9812dbe4-20e9-4769-84f1-93042f43dcc7","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":149,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"b465415f-3ac1-475b-a898-9f038ce56850","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":149,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"1b9ba997-eb7f-438c-8aea-237329419b41","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":149,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"f770cdec-1331-4826-bcad-a5bd9c9252d8","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":149,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"c457655f-1b60-4079-932f-f50863d2bb92","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":149,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"75843e01-b09b-4723-bb98-50c48fd9a52c","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":149,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"76cc136a-dd19-45f1-9d5c-636fc06fc41d","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":149,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"8c2a09fc-d235-4652-ae38-ef932bde8290","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":149,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"b96dac4d-e017-4765-8755-bb1d180d9e90","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":149,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"49fbfd59-31e3-4388-9fdb-70057e514fbe","block_type":"box","text":"II-120","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"442766a9-207f-4d1f-a6d9-6c50f60356f4","block_type":"box","text":"NM0926U-5975843-149/228","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b757c210-520c-4486-9eaf-9ff14d6c499c","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":150,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"54770341-8d51-47fb-a03a-fbae4ff914c2","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":150,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"895c3dd3-9ed9-42c5-b974-4726214e6f86","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":150,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"32c941f4-a65f-4f97-9302-bc9d2a7dd1a1","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":150,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"74378d8c-022f-491c-8757-d00a5930ae9e","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":150,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"54d15196-85d6-4037-8369-250e79dc2bd2","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":150,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"e64447dc-86b3-42f3-b3af-088545c3657e","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":150,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"d55b0ecb-9da9-4f04-88db-517bf801d20f","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":150,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"61d5f68e-7e11-4a40-a0d9-34774ee60be1","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":150,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"99fc8b49-c11d-405d-ab05-8adf7d8a36e0","block_type":"box","text":"information.","page_number":150,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"745462ed-7e5c-4281-ae18-52ccb7378906","block_type":"box","text":"Retirement and Education Savings Plans","page_number":150,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"b0b6a834-1405-4d2d-ab55-f3e24f4a2a8f","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":150,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"6eb30d5c-1c31-4323-a9fd-db2abf0a600b","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":150,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"34d83ea5-242b-4b03-96cd-66ffdddfe019","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":150,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"a70a8f10-0fcd-47e4-9fbe-69d140285925","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":150,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"31add812-67ee-496d-8d99-d24e8b095b75","block_type":"box","text":"your financial intermediary.","page_number":150,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"5f397a89-31fc-499c-8f95-bc25a6e6c9f0","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":150,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"0564260b-5f2f-4e83-b54c-a43073443d13","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":150,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"c6db2cae-5452-4ef2-a614-c42892246faf","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":150,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"191b8ea6-e01e-41be-8520-c7773decd327","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":150,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"a1216f2b-45e5-406a-b9ce-8ff1f089e39d","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":150,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"8da549d4-8a1f-4d25-adc4-c31c328b22ca","block_type":"box","text":"Automatic Investment Plans","page_number":150,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"41221d61-19db-4266-8e97-452320fc0b5b","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":150,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"02acba5f-e415-4b70-8186-00d796579b55","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":150,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"aba38791-4963-4a5c-b5b9-0be85402b131","block_type":"box","text":"®","page_number":150,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"2dc25b7b-005a-464a-846b-aa9ee39cfe5e","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":150,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"779f5054-8934-4ead-b01b-33fb7e131b88","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":150,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"4e6c54ea-06d9-4bf2-97b2-6a8c3b5e1a47","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":150,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"bf641a8a-b0f1-4e4e-9f32-8a472fa5ab67","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":150,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"f0d34c1c-48d7-4ced-940f-7d296358c8fe","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":150,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"e760748f-f3fb-4a8e-ac18-0112969bdd64","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":150,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"41ecd32e-2060-4adb-8f02-6591ac95be80","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":150,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"7e006e61-9bdc-454e-8d2b-8415e9c4be39","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":150,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"8671c839-68cd-4055-a9ba-99b2902d33f7","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":150,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"89c976f7-1984-4ee6-91f4-1841890fdbce","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":150,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"40fb2961-71ed-4fb0-bc7b-283424b8f1da","block_type":"box","text":"Systematic Withdrawal Plans","page_number":150,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"500ea7e3-130d-4c9a-803e-326c3ffaa085","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":150,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"43d51a62-6fec-4b2e-a856-852dc3bd5c88","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":150,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"a1ae3850-f0ea-4af3-ab1d-c1ad6a40ec0e","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":150,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"e5a1c4d1-6883-49f2-9b19-cbbd2404e04f","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":150,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"7a112c83-acd6-45bc-a40f-225c5009489a","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":150,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"d3090719-fd04-4278-a81d-163f94884cfa","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":150,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"704ccb60-043c-40a9-abaa-6fbe783b0f1a","block_type":"box","text":"www.blackrock.com.","page_number":150,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"2fd4ed1e-ada1-47ba-8724-d81c989aa969","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":150,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"319b12f6-3ddc-4c8d-8196-45bd0649d072","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":150,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"ee7e8695-50f0-46af-9426-bcac9d4f03e2","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":150,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"b43d72cf-0494-48f1-90ec-1d11793db3f2","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":150,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"51a07b32-4d84-4bc2-bdd2-403c49421fbc","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":150,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"6f541d33-6946-4619-98a0-828d58c53f87","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":150,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"c3302ba9-bed2-40a5-95a0-bb4866a15312","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":150,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"3670af35-fff5-43be-9ff5-7f1efe7b0620","block_type":"box","text":"II-121","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0d2e1a3a-b9d7-466a-9ac3-3f2d337337ee","block_type":"box","text":"NM0926U-5975843-150/228","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b5fdf994-3664-431e-aaec-34085d86a0cd","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":151,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"9c527810-9325-4d63-88b5-5ea673b665fc","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":151,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"7d3405f7-6a87-44a7-a058-f35c8fcea0fd","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":151,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"1ef23c25-be1c-4456-a2e8-d9142df88022","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":151,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"e53b3782-cb04-488a-8c74-97412e0ae45e","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":151,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"90e6297c-1735-4216-b60d-bf06999a7e58","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":151,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"3ea5dd96-2989-467a-8230-0e0ad6989efb","block_type":"box","text":"Dividend Allocation Plan","page_number":151,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"91d49196-a80f-46c4-964c-af26570d3899","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":151,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"b4b2ab5c-3d67-4070-bf24-ccd1daa50acd","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":151,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"3b18f84a-49a0-4000-aae0-9cf7587f85b7","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":151,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"47058a54-8cfe-4ceb-b39c-f9ed2b926ef6","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":151,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"c9a32575-c453-4a42-9e6c-59a1917ea3a3","block_type":"box","text":"PRICING OF SHARES","page_number":151,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"de381344-ccd8-46b7-bd45-913bf0f794ef","block_type":"box","text":"Determination of Net Asset Value","page_number":151,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"e787860d-4f21-49e6-ae79-52784c01f5e4","block_type":"box","text":"Valuation of Shares.","page_number":151,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"a6084442-debd-437f-b486-5d1428349815","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":151,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"1143b80f-49e2-4ace-a184-2c4dd5e95714","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":151,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"0fab6027-051b-4051-9ca1-aff048590bbe","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":151,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"4e424343-beef-419f-a054-0693e3ad90c4","block_type":"box","text":"Equity Investments.","page_number":151,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"90a23d08-7329-4111-89dd-793c209e7673","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":151,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"e5e71502-28a5-4432-969b-78e30688ffbc","block_type":"box","text":"e.g.","page_number":151,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"7325218a-0cf5-441a-b60d-1903fac13341","block_type":"box","text":", NYSE), on separate","page_number":151,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"77b42d30-6ef6-4454-9248-c6bd3c00a8e2","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":151,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"ad8ba73d-5479-4dbb-8798-be992a72c7a4","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":151,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"ce1441d8-871d-44de-a5df-d800c39e6d7d","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":151,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"3c605071-bcba-4844-bf89-783d491e0cdd","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":151,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"1369a63b-5992-4f5a-be47-c349cd4299c6","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":151,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"1c3f4c81-beab-4024-81ab-e89f837e2a4e","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":151,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"958319e9-7774-4e19-9940-20ae551b63f9","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":151,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"d5f09261-0ed4-4b0d-965e-681495c677a1","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":151,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"b4c2869f-2c4a-407e-9f5f-35a5a908eab9","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":151,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"7cf27cf3-b39f-4cb2-8479-f1ba6c415a67","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":151,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"3581f183-08d1-405f-91f8-bd24a0626fe4","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":151,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"1890eb34-85b5-4fcc-8dcd-66e13d0126ba","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":151,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"23a6d8ef-b8cb-413d-b0b3-0e7b89ed3345","block_type":"box","text":"defined below).","page_number":151,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"a2cdb231-89ec-41a9-a424-6a09b4948ed4","block_type":"box","text":"Fixed-Income Investments.","page_number":151,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"24e1f8e9-1106-4654-82be-0638e48bc5dc","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":151,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"aeb1980d-b90c-4ea1-9f42-3325b07aa2fd","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":151,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"78a5b6e8-52fd-4719-8769-0c43218b3c79","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":151,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"d3f51e42-4d23-43c0-8c48-74dd6c8d0a91","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":151,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"be05f2cc-a9f0-43b2-a12b-300644cbbb7c","block_type":"box","text":"e.g.","page_number":151,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"a255c520-f1ba-42b5-9150-78c65b72a635","block_type":"box","text":", recent representative bids and offers), credit","page_number":151,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"3bb670d9-dc37-46e0-a2de-9284b857ec1e","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":151,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"4daa8c7d-2e2c-47c4-8556-939589c853b3","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":151,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"a78aca65-887e-4a10-ac1d-ba7f4a974c50","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":151,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"ab2cd902-084b-482d-be59-609a24572359","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":151,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"0a8b76d5-3958-4122-9ae2-28b4c387d4aa","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":151,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"e854876e-375d-4ad4-86af-240305a3e07f","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":151,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"8e44a95b-e42f-4e30-8fdc-76e18cad51b6","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":151,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"f5f1b23a-59aa-4856-94b3-a1878ec1dc3d","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":151,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"91d99236-811a-41da-aa84-f54f581c6a9d","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":151,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"e3da55c8-2105-49fc-a7e8-df817b4ed36e","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":151,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"7a118180-c4a0-4a8d-b36a-380e98cc9c98","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":151,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"ec24111a-7575-4c96-81f5-d686030400d6","block_type":"box","text":"attributes of the tranche.","page_number":151,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"cfcf7b8d-a7ba-4ef3-9b56-9d0da57ddd35","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":151,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"794c0c84-d8a9-43c2-a7e4-6286cabf5927","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":151,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"3c77c87b-5085-45fd-8353-10e60c7e68a5","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":151,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"a4e1bb52-b160-4591-ba24-b3c68fc87266","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":151,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"3a5b8184-7d54-4f94-9d87-d16a5aff1df4","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":151,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"e053cefc-581b-4253-afa7-f305a4043298","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":151,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"093bc42a-f38c-4c35-bc0c-1b5c692a4e46","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":151,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"dcbb4895-79b4-41dc-bda9-27f372d2039f","block_type":"box","text":"II-122","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"70b97bae-4a43-4ab5-8acf-f97eaf1280e4","block_type":"box","text":"NM0926U-5975843-151/228","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4d830ee5-9077-486a-9245-336b5aaf39c5","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":152,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"b9d55047-fdb6-4de1-9320-7a6159e2ac3f","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":152,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"d0db4347-2a89-4dba-8bac-f607f8daf304","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":152,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"edb002eb-b561-4cd7-b7e5-5f913c8588e1","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":152,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"5cdbe00f-7e79-44f6-939e-6fa35cc60aec","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":152,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"541c146e-d769-4b4d-b383-c77761363f56","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":152,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"dcf5fd13-086f-45bd-9ebf-342969d18b03","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":152,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"fb7e5c8f-fe66-4263-8bae-5e937613986c","block_type":"box","text":"Underlying Funds.","page_number":152,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"bf30e1ad-3982-49b1-be65-575724dccc28","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":152,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"fe52bf08-d4a2-4176-910f-3385a960e837","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":152,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"654ad151-b01f-43bb-846d-cf9ebfe833fc","block_type":"box","text":"at their most recent closing price.","page_number":152,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"42b54cef-2fce-49a6-9b4c-57262e85a478","block_type":"box","text":"General Valuation Information.","page_number":152,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"bd7425ff-afc6-4508-b300-6b27502c0510","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":152,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"59b2b6cc-9985-4bd3-b5b0-c9a3a0dcb874","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":152,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"277efb74-cedd-46f8-9f6a-30743dfce24c","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":152,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"d5c2cd7e-2347-410d-ad1e-cb4e9c6c81f0","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":152,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"b5049795-158e-4f46-b382-fa5f87c04356","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":152,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"832b1922-7d95-4f42-977b-9612e14d9a46","block_type":"box","text":"the revision.","page_number":152,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"9297509c-49f6-48aa-ba11-ae2e12101d41","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":152,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"82139eaf-9b09-4cd7-8212-73337018bd86","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":152,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"81223f49-fbd6-4918-851f-c51ebd413383","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":152,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"c40abe92-6356-4469-89b2-43f8f32534bf","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":152,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"ce4084be-cead-473e-bb0a-90c41f04f42a","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":152,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"e7f78d88-43a8-4f4c-a4ad-7bc0ab71f79f","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":152,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"499a9eee-9f16-4be1-a499-56ca8eea7a25","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":152,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"50d9d9af-de9a-4853-b0c9-e55611fdef58","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":152,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"abe3658d-cf30-4c64-b05b-daba7e62dbf1","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":152,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"30c4dd47-6797-4206-9c1c-1be3e67159d0","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":152,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"b7aa3939-97cf-4927-8c1b-b8a162f41129","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":152,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"1f128f0b-214e-45fd-8371-d38c44aa3c75","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":152,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"38b36c7d-ca6d-4239-bd1b-bda7e724a09a","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":152,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"5ab7beef-756f-48cb-b399-2ad17183c184","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":152,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"d31bf345-93af-4e38-b94b-d17b07f8c713","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":152,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"4854af8a-4915-4268-9854-2d813c5cb8d2","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":152,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"a689a0d8-d296-41b8-a1db-63040bc744b9","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":152,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"8d50defa-5001-45aa-846e-234e5c0afdce","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":152,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"264b49e2-b1ec-4b55-aefa-b88b6cb91b6e","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":152,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"70f9a6e6-1c7b-4984-8948-b0a9eb0a0588","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":152,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"7b83cba1-b7ba-4550-9b51-30eaf140c41a","block_type":"box","text":"Fair Value.","page_number":152,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"ac43ca44-f922-4b36-b47b-3758a2233653","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":152,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"18c915e9-899b-43ad-b8ae-401b490eb89c","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":152,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"cc114fa3-bc6f-4f56-8458-72d938800c3a","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":152,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"ea8b48be-773c-4a8d-8a73-f14a392910cd","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":152,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"bba55fc3-7f97-465c-83e2-97a120437ea3","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":152,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"db95ef18-cb11-4abf-8937-eb3c10226513","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":152,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"74996013-4583-44ba-ab43-798812d8d80d","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":152,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"5fa8ebea-d1d5-4751-a033-8514bba99deb","block_type":"box","text":"(","page_number":152,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"ef486b11-cf6e-4c28-9000-de76e9eb618a","block_type":"box","text":"e.g.","page_number":152,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"1c25a0d2-12dd-4146-917c-edd1d9099330","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":152,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"894096dd-cdf9-4970-9547-f4a3228cd837","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":152,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"42eb6334-15d4-4c48-ad3e-85f0a7bdfd34","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":152,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"028e202a-bf4b-4006-bb4e-cb9627d066a7","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":152,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"f3a41d32-e7e2-464c-bccd-2d10f6f35b2f","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":152,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"6a9a90f9-42e4-40d9-9c56-7f5841a7257c","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":152,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"2eb2df9f-35fe-498f-b134-75a691223a57","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":152,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"7e48e0ba-4131-4228-93dc-9e65094d99c7","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":152,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"10182643-651a-4c21-bdc9-24b5bc4c6cb1","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":152,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"d414db62-8c09-487f-b1e4-456518bcae23","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":152,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"dc4d8763-b7ef-4bb4-aa9c-b23678515b3d","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":152,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"dc984219-43b2-4787-b8e8-4acf1250faed","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":152,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"820abe81-a1f2-42e6-a4f6-9ed776ffed35","block_type":"box","text":"II-123","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"31019739-addc-425d-8e84-93cb4f8322f2","block_type":"box","text":"NM0926U-5975843-152/228","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1fcf5b03-3984-432c-82ce-4a90b9de5af0","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":153,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"0b3e1df8-d736-494c-ba56-060efbd31c27","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":153,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"96b59075-ee9b-4d6d-9cb5-ecbb41e9d6f0","block_type":"box","text":"pricing time.","page_number":153,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"343c394c-633e-4298-9ea6-978bc30e76ba","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":153,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"46031598-a989-4822-a7f1-0f5da727a22c","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":153,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"ff1c604d-3fa7-4c25-b223-521c990108a8","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":153,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"4518d937-7834-4d0b-833a-c64a61472b3f","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":153,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"7bff01c6-c161-45b8-bafe-f67927735086","block_type":"box","text":"assets and liabilities of the Funds.","page_number":153,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"ff0fcc5b-09e2-40b2-9c52-dae3804a74cd","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":153,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"c99c64b6-c9c4-4e34-a3a4-461f51f25b2f","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":153,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"99ed3ef0-6114-44f4-bdc5-d1794d99c360","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":153,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"aee3a7a3-5ab7-4248-9e07-f79cd7813578","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":153,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"19dea5d9-59cd-4dfe-a3e0-039b559986cc","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":153,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"6c4676d8-0d2d-43f5-b40c-e7fc46e5d9e1","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":153,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"f506eb72-bf69-4ca3-a815-f089a1d8389e","block_type":"box","text":"valuation models.","page_number":153,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"095e9f2f-0128-4813-b525-a4ccded1bfe8","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":153,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"710e90d3-df32-46eb-9fa6-1f89fec860b6","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":153,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"fcd32d28-fca5-4513-879f-e3e8d2e97088","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":153,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"57668c88-62db-4078-9077-9bcc462b1062","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":153,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"19d0f3c9-c0c1-48e1-9d1c-5cabfd61992b","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":153,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"b6414de8-afb1-4c66-8e0d-54cd6d5b6b8f","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":153,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"cf3d01cf-2da3-485e-a995-39a29660af3f","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":153,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"faef49f8-15d1-4341-89c2-63342fb5759f","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":153,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"8f8f53b8-3a7b-40dd-9da8-e7b736d642db","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":153,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"511fb17e-71e3-4062-b5db-30bb1bbf5a0b","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":153,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"a1ee3066-4b58-48ca-8d6c-d1efe71b48ed","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":153,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"00e91541-a0e2-4772-a39c-c0866216318e","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":153,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"19ade8a6-0c92-4e67-9880-3adf194b05bc","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":153,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"b6c4ab63-adb9-46a3-bb52-7d653eb64ce9","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":153,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"bbe1e8f1-da0a-408d-b834-7d95826d2899","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":153,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"1fd6d7a4-3977-4b57-8521-fd7d02dbe0f5","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":153,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"e5b7b671-f5fe-46f4-8715-b1e29d6ad7a2","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":153,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"443b8514-487e-4d42-b424-41f3a2d13234","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":153,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"9ddfe1ce-c676-4867-8ad8-91ea1671efcd","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":153,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"28be4b8f-5686-4aac-88dd-5af8da5e1e92","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":153,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"ec0aff0f-d65c-40c1-9d9c-f514bee6454a","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":153,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"1196af77-a618-47c3-bc0f-b52b8f3033ec","block_type":"box","text":"party determination of fair market value.","page_number":153,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"9af91692-8bad-40a5-99c4-d7fa2f7b2e4c","block_type":"box","text":"Computation of Offering Price Per Share","page_number":153,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"1177fa7a-c6b5-4d08-94aa-ec0c7e2dfa77","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":153,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"f408c8ab-21b7-46cb-854f-68a81d6ca8ef","block_type":"box","text":"the offering price for shares of your Fund.","page_number":153,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"a4ba97f1-8c60-4465-a0a1-2dc213a05ed6","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":153,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"650c6f50-652d-4770-aabb-ae09a2c2f232","block_type":"box","text":"Transactions in Portfolio Securities","page_number":153,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"5dc65bc5-61b6-4910-8ca2-fed30f2d6341","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":153,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"02a88d9a-43ca-457c-bd0f-7ebd7bea8db0","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":153,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"9c7c807a-3fb6-4c6e-ac04-6f45d45cb69a","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":153,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"8a1f70df-c7bb-4ed6-8ea0-ba9b4ea067cf","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":153,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"dc87ff7d-1eb2-4ef7-bba5-2c5eda316a64","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":153,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"cdf38985-ba04-4edc-8cac-a6a09746f6ef","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":153,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"3ad37286-3f5d-4d96-b3a2-dedc1806df13","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":153,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"a3e8a9f4-c9d8-45e7-902d-1ae398166d86","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":153,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"f185fda4-e34e-4c15-9391-5a5fdf0ee789","block_type":"box","text":"II-124","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3fb1ba94-484f-4bde-a27c-35f7f1a5a2d2","block_type":"box","text":"NM0926U-5975843-153/228","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c04a0798-6075-4c37-b372-011def4b9926","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":154,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"456d04a8-c10c-4f3f-a2e0-014dfe960673","block_type":"box","text":"reasonable in relation to the services provided.","page_number":154,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"51651b96-668d-4f14-811a-721905d1e5b7","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":154,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"188b695f-75f7-4890-b54e-fcddd8557e4e","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":154,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"8b60e53e-1968-4fed-ac12-ec21177b7a21","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":154,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"d8b854c0-44c1-4aa9-af1a-b856d59eba17","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":154,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"da96716e-8a25-4702-81ca-00d2b5d6c795","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":154,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"838554c2-4a23-4b6a-ad08-f8b4854205ab","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":154,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"a9b36f15-8778-48cf-8633-fef8873c5cc5","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":154,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"e24f7ef7-6600-4064-bfb6-5ff378073309","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":154,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"995f36ce-93aa-4e62-8e91-7e0eb6270576","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":154,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"e079da33-d7e9-4b6f-afd6-1ad499f9044d","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":154,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"f7a32d4a-3f38-464f-aefb-03bf8379964b","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":154,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"a12cb075-2320-439d-a89d-e0ca9cb37a7d","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":154,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"47529ab0-98ed-4154-9ebc-3255b87afd6a","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":154,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"5bb1ada6-beaf-4735-97c9-dcf40ff43879","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":154,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"56f5aef1-5b67-4206-8d64-4c3177445396","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":154,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"d0854188-0d41-4d52-9b39-a95de3d23cca","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":154,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"571519e8-344d-4be4-a2ec-871d4705f527","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":154,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"5e184a86-2667-408b-b5e2-b5fa5a181e14","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":154,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"0e45c3f0-6330-4f16-8e13-c0db39e85ee1","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":154,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"e6c999d3-6c67-44b5-ab4e-8ef457d17f3f","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":154,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"e0e80ac3-3693-4489-8371-c4214de6ae60","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":154,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"8e95d4a6-daa4-46c4-bf6c-7b059a7f8f8c","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":154,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"0c988d3b-8b86-472f-9f85-6ef6f3c182fa","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":154,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"a84d5d02-6e7c-4a78-841f-78b2db57ee55","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":154,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"d148a32b-6c21-470b-bdb2-5d51c731029c","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":154,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"1777a292-7cdd-4d91-89ff-602c96e46fd5","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":154,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"d836e26d-dd3b-43c6-91c3-017309d66ccf","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":154,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"213d6686-2ad0-4f9f-9b42-1453a86326e3","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":154,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"3d1373d4-a794-47b3-aad0-74c1194fc74d","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":154,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"e3da5ad8-bc63-4cf8-a232-13c32c6a09fc","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":154,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"911a7109-6e6e-4a28-bffd-870b58764537","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":154,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"e50fb272-b7d8-4e60-9628-c4992b81d3ee","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":154,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"e119cf2b-3bef-4b27-822c-09d0916dcc3d","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":154,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"ddee2108-92be-4c7e-9819-0a47964bb0c8","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":154,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"6ede7adb-224e-4839-b0c9-61e698375228","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":154,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"690898f5-86a2-4a7e-859b-a06b9bdd8ddb","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":154,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"ddcc88fe-c960-4b2c-b960-c8b67ca99420","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":154,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"fdf49ab5-b4d5-4ed1-b935-f61d2064252a","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":154,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"61212074-1ba0-4a13-a1b1-42f8ffac432e","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":154,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"3c5bc3e5-dca9-4cef-8959-2482acd7a6b8","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":154,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"a1ab4e29-6514-4597-8100-0f59bfeefa23","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":154,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"96fc9153-d1e4-4606-9779-22719be8ed26","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":154,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"7db21d3c-2519-4212-9915-53d150853598","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":154,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"52d35ecc-7a0e-4f8a-a4c1-f4571ee83f9b","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":154,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"8211263b-b972-422a-a4b0-9b0f78ba396a","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":154,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"156f8d8d-2eff-482c-b8e6-21c41ce06463","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":154,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"92ce519a-3057-4a21-95a1-7d598cf9fecd","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":154,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"f980dc68-8b36-4451-85fd-fa42f1ab07f9","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":154,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"7833efe0-5616-414b-83c5-60b9700e15c1","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":154,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"a3a9614f-7e32-409d-aec7-f323f367b2fc","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":154,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"fd03273f-fa37-4ac4-9694-1b028749ee12","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":154,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"fd393445-e044-420a-afca-1f7213153681","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":154,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"bc0b6359-d341-4916-9e27-8587e1250567","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":154,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"b4175af5-a525-4eae-9654-5147560cf17a","block_type":"box","text":"II-125","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f7cdfce3-5d5c-4010-9fe5-24bf0c71857c","block_type":"box","text":"NM0926U-5975843-154/228","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"36586886-1a5d-43f2-b7d6-618988450c53","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":155,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"5e9b0a6f-f460-43de-8385-7c135ecf2877","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":155,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"56472bce-fc21-4ba8-9bb0-8c233b9a7f12","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":155,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"90cf512e-deb4-4293-b73b-0eb0e7eaa981","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":155,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"e47dc8fe-b18f-45ec-b5a7-96158968a0d9","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":155,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"6fec72fe-2349-4c65-ba49-f7445fe67567","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":155,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"c20e6e53-804f-4c7b-8c13-0d11cc960a09","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":155,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"148e3cbd-f70a-43d7-a2bb-63756fc795e4","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":155,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"28c2b60f-eefa-40b7-ab31-9b62947db5e3","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":155,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"ec390862-52c4-4469-8bf8-1b8a83ac1779","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":155,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"998f48e8-4670-4d82-a63f-472783a39f4c","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":155,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"e3397fe1-4279-4322-985f-ceab1051b16f","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":155,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"a26fa5e3-ac74-4388-af33-df3b4daeb187","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":155,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"f0a400ad-eddc-4552-ae0e-9538737e1884","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":155,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"31fd3b98-7426-4ac2-8722-9e4269bb25a4","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":155,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"6c5af7dd-a429-4225-bf74-13d6af7a7341","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":155,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"fa161b70-3cad-476c-af81-16570e1f052d","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":155,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"7a870563-3e97-4166-a1c6-3ce9a26ee68e","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":155,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"77c09f20-c87d-4da6-8324-f3e68e388440","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":155,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"45b21146-e95c-42c7-86ed-18638800ac25","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":155,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"1a779707-8b23-4545-a923-63799d5a3458","block_type":"box","text":"brokerage.","page_number":155,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"c2207cc4-9a5e-48d4-81f9-dce81be8462a","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":155,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"3f5d7fa3-df19-43b4-9efb-bd4433b3438d","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":155,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"01ac4f8f-cc1d-4937-ae66-cf6d2c8eee68","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":155,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"4cf25906-d896-4f98-b0f7-f76cc8feb91f","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":155,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"5a431266-42a3-41c5-b92c-2d276fda8c93","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":155,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"0310bea0-5ce2-43d7-9e95-73b1f0ea95f9","block_type":"box","text":"Section 28(e).","page_number":155,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"fea01b15-d9aa-4188-be65-4c0f080329ce","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":155,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"48abc1ef-bff2-4931-acf7-6f061d7a4822","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":155,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"c79d70f6-4eea-4a47-8635-564df75bb2b0","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":155,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"e6fec4c2-d46f-4f32-9eb0-3c916e714aed","block_type":"box","text":"execute transactions for those mutual funds.","page_number":155,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"ad9db267-c28f-44ec-9d70-b753589f5195","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":155,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"4838e999-7268-4a2e-9cea-d2869b4e3f86","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":155,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"727c798d-1c90-45a8-adec-5615ac5a3528","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":155,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"1232f5fe-07dd-4c2f-bd86-e5ff68b68e40","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":155,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"5307c71a-0c2a-459c-9db4-76df40d6f024","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":155,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"e3dca19a-3a02-4d6a-87ae-e4fc1605c317","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":155,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"03965807-652f-44b0-9fc8-d9d99f61f9c2","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":155,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"af32ce6d-4437-4c0d-9b76-5048bf317e48","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":155,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"e93bc415-6005-421e-ad1e-7641bbe28f83","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":155,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"8249ddb0-b4ee-40ae-85ab-9030d24a50e8","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":155,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"3b4c2abf-0af7-4fdb-9aa6-a79552c05169","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":155,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"478ece80-5692-45be-86ae-3c1416e1400d","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":155,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"73914d68-43b7-440f-bbab-52c6dd69709a","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":155,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"ac515a5a-25a6-4bd4-a9c2-1c64eeffa7d5","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":155,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"7232a647-bd30-44fd-a907-abab5f06a040","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":155,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"eae14d1e-5b5f-4f53-8854-a8f0992178a8","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":155,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"e1130479-6a4f-4c25-aa15-4b8855b29a44","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":155,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"9da96137-e036-4296-a535-f5a51ef56f05","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":155,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"f368463a-9e5f-42ab-a351-d958775f876e","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":155,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"5c01cd1c-6f05-475b-bbc8-2bf77674ed21","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":155,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"1c9b4678-f6e9-4d89-9d61-aaac2c243592","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":155,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"5ab64aa5-dd8d-44a5-a151-f24c63ba3743","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":155,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"ad5d0014-23d2-4173-8478-f1ff29b0355f","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":155,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"c76b9b96-a432-40cc-b7e9-12e80b00c31b","block_type":"box","text":"II-126","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"397c96aa-b4d0-4483-a4fc-ec35e6d2a4b4","block_type":"box","text":"NM0926U-5975843-155/228","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ce4c9ff7-9995-4437-926c-07766c13e582","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":156,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"766a7f6d-e05c-437a-9a40-afd6c298217a","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":156,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"e665f28a-f638-4d4d-989f-732f44be5f71","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":156,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"ad22e803-ff7b-41ea-b127-0a7d19327155","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":156,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"0c488929-2f9d-4c03-a5ac-1aaa154be365","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":156,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"7cd9b581-8f92-4af7-adc5-7b04c246d9ec","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":156,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"ce6bb005-8a59-477c-9d84-265730adcae4","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":156,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"2a78f512-207e-4a7c-9685-b5bb2713f7b2","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":156,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"4b87c618-4765-416f-907a-f130055db39b","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":156,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"8043a78f-53f2-44f1-b7e7-4d01b8a2cc2a","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":156,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"241756ff-27ac-4e44-a484-f1711c62bf09","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":156,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"7449f281-47d1-4693-b473-ebd167a4a29e","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":156,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"276826f4-52e4-43f6-afb7-9ef7f5454a05","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":156,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"bbb8c67f-3904-4db0-b775-18f1f7b17004","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":156,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"b2c28fa4-d1d6-4b31-8c05-3abd7256e0bc","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":156,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"2f453adf-4346-497f-9236-c0d3030f35d2","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":156,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"f08757e0-a56b-4d16-9f63-d0aad8a3833d","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":156,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"b124faba-96e0-4073-a895-b3c4707d3ba4","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":156,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"964310a7-aaf4-4760-b96b-4c007aa0ac19","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":156,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"144bb2f9-d56f-4346-8af9-ee9725c548c0","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":156,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"7d274a10-457d-43ff-be42-1c1afab03bb1","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":156,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"c157f0b7-08ae-4e56-9647-10461abe6688","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":156,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"46fcf294-be34-49c6-a8df-068045f30e8f","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":156,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"26d4f0fe-61e7-4e23-8474-81eaae3de4a6","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":156,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"9c89f7a9-b3f3-4ffd-b587-8de45ae18a84","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":156,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"f9f20487-be99-423a-ab80-44a2d6e439e8","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":156,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"82dc002a-a9d2-44ed-90b5-e7a709963e13","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":156,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"072873ee-c516-4c51-b2c6-60e15c4a90d2","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":156,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"82b12e5c-3e8b-460e-91d0-957241f99f23","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":156,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"ad98c461-b93a-43ea-92ce-bb3cb588120e","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":156,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"2ec63e1f-3066-45f2-a01e-5240cb9450d5","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":156,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"4782dd9f-54ee-4774-8c1f-17dad6528948","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":156,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"4e408e15-22ba-4c0f-bdf9-be6ba339b7f7","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":156,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"8a4aa903-19b6-426a-a94f-fd871b900308","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":156,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"f52c90a1-a22d-4960-9bb5-ca068081a8d2","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":156,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"5a7d6df1-ff3f-439a-97f1-97df76c3065f","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":156,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"9d910df8-2955-4201-99f2-e4d59e53c322","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":156,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"99381a2d-a201-4ad3-aaf8-4d649b16dafd","block_type":"box","text":"accounts and compliance constraints.","page_number":156,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"4cceb6c9-539e-4388-b66f-742511fb3a7e","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":156,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"8b80ed70-59e9-4e78-849b-96182dcc8d8d","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":156,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"461c2ab7-4fb3-4710-b291-0d90257a44ca","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":156,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"7a582a30-26b4-476d-a21c-9b33d4330d01","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":156,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"7cf81e34-c0a3-4b2e-8974-f322867cf7f1","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":156,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"70cfd8d0-eabe-4b86-ad42-27c1bc5ea4ca","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":156,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"77bdcbe4-8ae4-4c6a-ba78-245e611e931e","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":156,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"c366e5be-efd3-4a5f-86a0-f12ef65b585c","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":156,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"84aaa65d-7ad1-451d-9ab8-df7dc3162537","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":156,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"f5ba926b-3367-4af2-b917-6e09c7a34b3a","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":156,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"28175ebb-c5ae-43af-9eea-132398b9680c","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":156,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"54398992-009b-48ca-82cb-cf1c5f7c6bd9","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":156,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"74ec1755-5a37-4e5a-ae65-9b2f2cc79636","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":156,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"5cc6500c-0a5c-480a-8962-a6b6cb8eb090","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":156,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"a0d3c35b-a679-4be2-849e-32ff210d0ce3","block_type":"box","text":"clients may be used as well.","page_number":156,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"bb2b90c4-5385-448c-95e6-f24002190ad0","block_type":"box","text":"II-127","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"70d007d2-eb55-44da-a855-84e135d5a293","block_type":"box","text":"NM0926U-5975843-156/228","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8fe1af9f-8a27-40b8-b9ca-da93176a93d8","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":157,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"488b0dc8-0ff4-457f-84e9-c7fe43de8601","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":157,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"282ccec2-6206-48ce-a431-026bcb1d2ab7","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":157,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"d2eacf13-1931-4aeb-8d60-3bb90f6651b8","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":157,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"c171d1db-c86b-46d1-b4f8-378b62b32397","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":157,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"44d7c338-ea8d-4f7c-a8cc-f6449e977358","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":157,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"f398e621-9ab7-4efb-b37f-a12d92ebc070","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":157,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"87b3d987-c316-47c1-8fa5-1425ee7c0db5","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":157,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"7b1956ea-8e73-4824-9667-e24de885ddf4","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":157,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"cd8e4397-0477-47cd-8574-e793af8c992c","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":157,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"2c62df0f-d474-4a63-9270-731dfb41b010","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":157,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"076a6799-59b7-4a65-a057-547b4d3c3fba","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":157,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"43c902e8-90c6-44ed-b9da-dc3245a22e13","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":157,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"885a5cfe-99f7-43a4-b784-1110d0c104dc","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":157,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"8f6fe836-a4c1-46d9-96ee-466cf787d0ca","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":157,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"005a2b6b-70b5-4ea8-b66c-2599fd3d5567","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":157,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"526da2d0-fcf2-4328-9aff-5e70a59b854d","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":157,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"36db677a-a16a-47da-a562-2440e8687199","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":157,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"554e704d-38e0-4749-b18f-fc5a5aa28a03","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":157,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"ed1ce0be-5b25-40b7-85ff-12e188aec085","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":157,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"78c7347a-f4de-495a-9df9-67481827d273","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":157,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"3ad2cffb-842a-4bd0-b0db-645b4b4cee34","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":157,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"ec076f76-1c33-48b8-a3f8-df021996cdb9","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":157,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"eeb62fcb-791c-4125-a41d-17d2000dd067","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":157,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"564a099a-574f-464a-9606-2db623d4ee0d","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":157,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"4e1cbebf-16e5-4a52-a2c2-8b7b29f95857","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":157,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"f9d9e380-ea97-4410-944a-f3c32615ec92","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":157,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"af87c7d1-012d-4dcb-bbc2-9f960fa5ef7c","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":157,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"2857b6fa-6424-4eda-a159-4308a6f17e4c","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":157,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"6af83274-245f-48ff-8772-3dbe131759c5","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":157,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"e9062c7a-92ab-40ae-8f71-640421763e0c","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":157,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"f48af4b7-9c20-4e29-9fd1-69f504b3b51e","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":157,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"4ff37b3b-1fe1-4a4d-a03a-c8acbd3d981b","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":157,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"3b33fe27-c90b-4725-ade1-ad4cd1a1c7f0","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":157,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"1609f56b-2627-4745-a59e-d5262b2652c7","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":157,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"3508e4b6-93e4-4fef-a35f-63fe29ceaa32","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":157,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"f6800378-99b1-4713-a4ba-a841de5320f5","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":157,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"34c1aac1-f087-4817-bc2a-03cc48bc8285","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":157,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"448745be-15bb-463a-8c16-0399118c5543","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":157,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"6d12caae-4211-4d4c-9666-a41abcaeac89","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":157,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"fcb0f1bc-5e7a-437e-9333-a95819821420","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":157,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"8bf75f93-d3e1-454f-aeec-e37524e1494a","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":157,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"f63015b2-7bf7-49a7-9c1d-778d1ed960ab","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":157,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"6fc6053d-35ff-4e1e-8c56-441cc649cb14","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":157,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"09b8c622-f4bb-48ef-827a-f8e5611a563d","block_type":"box","text":"Portfolio Turnover","page_number":157,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"844895d0-b536-4c51-bc52-382f9b02a5ca","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":157,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"bd987b12-92a0-4f63-ae36-dbaf6bf2ecda","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":157,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"7dacd5a0-b1f5-4134-917e-b9dbd68a5705","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":157,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"e168cfe2-b090-4716-a2e8-0b722f25e6fb","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":157,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"0c8f6eb7-b73e-42b1-bb62-508a6889e24b","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":157,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"a05aeb78-449f-423b-b5c7-a4e36abf3b1a","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":157,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"8ca46ee6-f36d-4b7e-8522-f610193971a2","block_type":"box","text":"II-128","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f22325c7-e92e-462b-be1f-cf43e0b098dd","block_type":"box","text":"NM0926U-5975843-157/228","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6d2f5e5a-5746-4ce9-9150-80a86a77bf2a","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":158,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"a372faa7-cdb6-499a-bd88-91c3a89556e8","block_type":"box","text":"Dividends","page_number":158,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"f0f132d8-cd7a-40b8-901d-33e25cda1526","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":158,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"e85fd6c7-69c5-40a3-ab05-e927c8fcb0eb","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":158,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"ae49423d-48af-4ae5-a421-b387a0ac67d7","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":158,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"e6573738-3e32-4cec-9ad1-8f2fd857a141","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":158,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"2d6dbf00-ff2e-4e21-8211-f1b98800f7c6","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":158,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"4d1fd59c-4d5d-449d-bebc-4d1f333fcfdf","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":158,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"347faf34-93da-43ad-aee8-f8ec73174890","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":158,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"0aabc036-01ec-4405-b4ef-3fc5a113b70d","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":158,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"4d82b952-e991-47dc-b87a-02d5e6f68193","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":158,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"c51d15e1-3561-4339-8a7f-45481c676bcb","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":158,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"2754ce55-391c-4457-acb0-9eed7a566e9c","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":158,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"667ff760-0679-4860-ad41-273c0718865a","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":158,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"50c7f219-f476-4f0a-9b97-867d41b49dd1","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":158,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"937e18af-0385-42d1-973b-0b64a6309476","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":158,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"a6887d35-7091-4a26-b6a3-7a0b9ca3c233","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":158,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"21fb1b11-400d-41af-a3bc-1a985de43339","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":158,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"46531071-182f-4fb7-a999-3c0279e8482a","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":158,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"8d200d6f-c2c1-46de-bdc1-78224b120c90","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":158,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"8d7e5bb4-99e9-4e9f-961c-627e34a3ea72","block_type":"box","text":"Taxes","page_number":158,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"eb29a69f-1e1d-4c78-a18e-2039b6087274","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":158,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"6515f44f-5409-42c2-8791-33c1ddb92067","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":158,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"67e1931c-f2d3-47b3-b20f-a59f7340968e","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":158,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"2996a309-0b2b-4a22-ab10-a50d6ccecf93","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":158,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"d4f1a9c1-a40f-473f-a900-fd63413a874e","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":158,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"af9f4bbb-3f39-4fbc-97f2-14fc17d0d958","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":158,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"6388ac2f-1c95-40ec-bcd7-c39f8f883271","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":158,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"88dce027-1240-4965-8529-c9ac5a24e1d1","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":158,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"91c7b61e-ca64-4a7b-ba17-03fd765b640a","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":158,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"09b6dacb-b160-4ccc-8cc5-af3c01463017","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":158,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"34546cb6-ffab-44e6-869f-b23972c6e314","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":158,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"8332a737-2cf6-4eae-b024-91830c9838e7","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":158,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"706518f5-c98f-4db1-b10a-ebdc78c8708e","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":158,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"93ccaa37-251a-4b96-9fe8-af7d3b1153b0","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":158,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"54ba3e6e-ad41-4301-bd58-5b92a8f4bf7a","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":158,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"fd704768-feff-4cb3-bfa1-0b3cd2c7e0ac","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":158,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"96d8ad32-4c5c-459b-bea1-4a209cd0f6a4","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":158,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"b026b96f-b0fd-4bad-ba51-9d9055cdbe0e","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":158,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"ff8898e9-3ae0-40c1-bdb9-a52db37455d3","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":158,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"f864fd88-87c9-471e-bc42-03222f2a3a7e","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":158,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"e2546a07-5d4d-44fb-8231-72676430be98","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":158,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"891e10cd-2295-43bc-ba8b-3f969546fc75","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":158,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"c2fe3aad-fcf8-42d0-b88c-7a52b103d6a8","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":158,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"a68363b6-921e-4c2e-8e03-91097c772790","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":158,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"3dfee363-4bf2-4867-8c4f-3dd6e441c801","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":158,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"b9169e71-4d81-4948-8599-69e5891bcedb","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":158,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"a31d90d2-b9df-44d0-95fb-836a02e0b209","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":158,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"7add847e-de8b-4d3b-8b1f-686b8f700bbd","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":158,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"bf8b7337-fe90-4767-875b-eed24a4bf9d8","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":158,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"2db5b567-c87f-4443-9716-abb7c3f6ed12","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":158,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"39448c17-fc6e-440f-a422-af8809092add","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":158,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"66055954-ac2f-4c58-9f8e-cbebdaf1e368","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":158,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"4da2bef7-7e89-4b43-b499-5dfa297595a9","block_type":"box","text":"II-129","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"edf8258a-e5de-43c3-b6a0-36985106de0d","block_type":"box","text":"NM0926U-5975843-158/228","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"666286b4-12d2-4653-8ee8-257d98768fc3","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":159,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"1d9d761a-f0fd-4fe6-b95f-c0e6c2e17dce","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":159,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"3ef3c5f0-880b-4693-b7a6-d271daaaaf95","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":159,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"1a30df51-fa19-4c79-8857-5777f5e9a050","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":159,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"7267fc03-48d0-48a3-a937-621c2f5c7cef","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":159,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"0fd132a2-ce4e-471d-9d42-5b51c80779be","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":159,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"8a6a51c1-e162-4a51-a4b9-b5c4f4499eb1","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":159,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"457ad836-c215-4adb-9e59-edc9a0d9e2c3","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":159,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"ba10c031-4c79-44f1-bc7e-ef6cff2b88e7","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":159,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"d453995e-8306-45fc-be85-f6a102446984","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":159,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"ff36192e-6956-4e11-a11a-e5f169d7ee4e","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":159,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"1c61c345-3ea7-4c3d-897f-dcc475cd9a72","block_type":"box","text":"limitation.","page_number":159,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"678db21f-b907-4018-bf7f-29a931641c92","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":159,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"677db8a7-f78f-4c10-8976-60ee548bd9a9","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":159,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"22625bac-8780-4dce-883d-8bdf20953dcd","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":159,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"5351c62c-b4a0-4792-b589-4925610feeaf","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":159,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"2639f2b0-b5f1-4f0f-9c8a-40508a38910c","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":159,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"3407ad8a-fd9f-4600-a09b-d3daf452b94e","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":159,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"728d86f8-aa19-4913-974a-bab6f6466621","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":159,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"f45f5401-dbfd-4198-9575-096f9b6c59ee","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":159,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"a9e5dac3-db8a-4be7-982d-164c82348d08","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":159,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"0792a4d8-eeea-42ea-84b2-072e15fe1408","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":159,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"1e64c93f-53b5-4937-883f-eb749927c169","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":159,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"9010126b-f02e-4709-a79e-c2f54aa46225","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":159,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"46b133a2-1d70-4c5f-b379-0baf03e815ce","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":159,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"69479076-8785-48e4-ac8d-cff7b009d98a","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":159,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"265adb6f-ce6e-4e42-ae9d-5e592237cc1d","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":159,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"0875d92d-b089-4407-a321-0c9d634a2846","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":159,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"765c30d1-c1b4-4826-9a32-5fd54cbd97fb","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":159,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"6ce1e516-1722-4aa0-8a94-15982d91ec39","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":159,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"af56ac31-ec99-4a99-b62c-2312550c90fd","block_type":"box","text":"constitute “qualified dividend income.”","page_number":159,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"b897f268-c681-4795-a5b2-ce1bb07a7a4a","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":159,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"914ec95c-fa35-4a6d-a7ee-e353c1e464d0","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":159,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"8df2ac90-31d4-45dd-acb8-20995e797ed5","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":159,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"437951db-4e86-4d87-b0d4-1c08e98ab6d0","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":159,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"0d92e62c-7b96-4b55-9030-13524715859a","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":159,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"721aa7c0-ddea-4804-a55d-54ef2ea4bc64","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":159,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"65063350-bce8-4356-9cd7-5ec43bcf1455","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":159,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"e85830ae-a85a-4adc-9efb-2032e39ce318","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":159,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"6839180b-6ac2-4280-8214-2714464c4d94","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":159,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"d9526de1-69c9-4ab6-806c-7d5a4284a2fd","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":159,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"fc7bb1c2-be1f-435e-a57e-5fbdf7465296","block_type":"box","text":"against their taxes.","page_number":159,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"6018da22-2b92-4827-ba8d-e64574565de0","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":159,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"6c60b563-2d46-4188-a8ef-90d6ffd843e9","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":159,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"edc66958-5fe0-49ac-95a5-d9f8abf51f85","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":159,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"2f17b9cf-ea08-42d2-858b-106c5ee238dc","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":159,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"654c7a01-698c-4e92-a6e0-186262816df5","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":159,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"33cbf5ef-fc24-412d-a1a1-008c63e1e0b7","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":159,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"af14fe59-89e4-4d43-9d2a-898486002fe5","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":159,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"e43dcd83-112b-400d-ab1b-fe38a22fd9a2","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":159,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"15f522c1-d62c-471e-98e3-4c528c1a03d0","block_type":"box","text":"dividends received by the shareholder.","page_number":159,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"87fb8e9a-4531-4142-af73-bc78b4337246","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":159,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"406de034-97b9-4c15-b5d4-1e7eb606f99b","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":159,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"cbb03250-63b7-40f2-ad69-2fd680b3b62e","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":159,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"2dee1849-c9a8-495d-a80b-1b0c40454b36","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":159,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"0d05ef6a-8b35-4b6f-8c48-bc63ccdf830b","block_type":"box","text":"II-130","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a43e0777-29aa-4325-a42d-e8b44615bbe6","block_type":"box","text":"NM0926U-5975843-159/228","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9cb92271-aef8-450e-8cb4-febc9fae8687","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":160,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"3f88288f-1076-4d7f-a7a3-7f354ffaa66c","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":160,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"2cdb8986-e647-4125-b169-ba379c0d4da9","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":160,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"d5591334-4fed-4dcf-ac51-c50af712d5be","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":160,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"90ae6fb5-2365-45a1-b1a9-f0fa0f514880","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":160,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"a3ffb758-64a7-4044-8b30-ed3a35e0b6a9","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":160,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"6006f98f-16ec-47c5-a275-340010181805","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":160,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"53f606d5-5be3-4323-892f-61efacb67728","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":160,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"8d0d7dd1-ecee-45e5-89a9-7dec056f8331","block_type":"box","text":"taxable year.","page_number":160,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"d4d9a667-2d47-43c6-bc3d-e8e32e2e1e41","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":160,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"de074289-6516-47a8-a65b-6594753b3a22","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":160,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"4599e8d3-2de3-48ea-9f06-c306d704a55c","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":160,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"3715d765-7638-4e4e-85db-d13e1dd673e8","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":160,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"2e236b08-99cf-42b5-9389-661661a98fbd","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":160,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"ae7a197a-eec2-4153-a12e-44ba202f739a","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":160,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"aa9994c5-6afc-4783-a6e9-25ceb979222c","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":160,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"e4fa7208-9551-453e-a2f1-79020e636397","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":160,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"b48ed196-6ef1-452c-9095-ab5685765660","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":160,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"af809764-35e6-4d95-b70c-b5fcfc325582","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":160,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"d51e51bf-52b3-4c33-adb7-82ac8372f4ed","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":160,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"d2b5bfd8-1d1c-4982-a43a-fe2d5194095d","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":160,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"96e6a0d1-0b5c-4c5a-a774-60e4c43f4622","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":160,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"7723ded3-20ca-491a-bb5e-e09004e57dda","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":160,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"d365b275-c6f5-4d56-821f-3fa7f8e6b8db","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":160,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"e7ae491b-89a1-4d29-a3b8-7ac2fe4dc68f","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":160,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"e90da3c8-dbc2-4a2d-a02c-45ff8c1c294b","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":160,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"be5e8a03-084a-4759-82c4-be9bec2a9658","block_type":"box","text":"special tax rules that apply to their investments.","page_number":160,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"d06099ec-ada7-4a9e-a680-eb40e880fde2","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":160,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"9f223050-9290-4848-9317-f4328d5fc8c4","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":160,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"63011a76-d05f-4eb6-9013-37b095e2467a","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":160,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"c9910e8b-1562-49ef-a11a-07dea5f68d0c","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":160,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"a6e0d193-54f6-4782-a4ea-0f261ce58983","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":160,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"27a38541-abc0-4126-94f5-4753e020b663","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":160,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"34e4e39b-c2f0-496b-be58-3b87dec484fb","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":160,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"cb98806f-e90c-406c-a166-f234b5938fbc","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":160,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"b5b21b86-9a95-4126-9b2f-7b741f3ec710","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":160,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"9153dd8a-6f1c-4dbc-b2f1-d24da2a008d5","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":160,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"c72df9cc-aa42-441f-989e-04632de0524a","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":160,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"eb29941b-4740-4037-9ad7-ac2fbbc9f768","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":160,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"566a6e98-8cd4-4ff7-bd8a-ddb827cfe133","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":160,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"10db68df-726a-4c17-aefb-13093407c17a","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":160,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"9c58303f-1efe-4e0f-b4fd-ab057cf43835","block_type":"box","text":"redemption of such shares.","page_number":160,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"edc17d7b-2c62-4723-b165-6e7e37ba63d3","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":160,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"2d5a7814-9137-4a5a-8e6f-ab338d5161b9","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":160,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"126cfc7e-dec8-4026-b8bd-56d4687eb633","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":160,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"d7701c40-32da-44a8-9c86-89ede0d3db17","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":160,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"5e67007a-a094-45ca-896f-8330d9d10d93","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":160,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"cfc596f7-710b-49a4-8ad3-5c2d7aa766ae","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":160,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"8463198e-a65e-4911-ade0-cdd3ea53e61e","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":160,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"02ce4833-0bad-47c1-9026-6f565847c9ad","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":160,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"743fc85a-8c52-4755-b3d8-8d68e986a41a","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":160,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"7cc48e82-7216-4cd6-af6d-aa4bdca56b1d","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":160,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"8950454e-7b73-4d88-bd2b-bafb210ca27f","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":160,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"39a396fd-92fc-4578-8a00-83f1f8ede3ad","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":160,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"bbf00244-690c-4ae8-be4f-35ee71c68f5c","block_type":"box","text":"II-131","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c0ee9b14-99ce-4ef7-8b47-b637a7605d93","block_type":"box","text":"NM0926U-5975843-160/228","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"446c64ff-6427-4510-9957-a4b8340c3cef","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":161,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"76aae96e-cebf-41f8-b170-0c40da36da7c","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":161,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"857c23ff-672e-4f56-9ddb-726904d9fad8","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":161,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"96d5cf94-bc53-48d4-b963-7753a0a73b60","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":161,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"7f2202af-35e8-4ca8-baa5-406467366b8b","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":161,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"7ae3d4bd-f391-4547-b4bf-3aaee6aabb98","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":161,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"a247a419-3990-474c-a391-c98a74982e15","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":161,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"a2561eed-d671-47ae-ac26-a08f9121f7e5","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":161,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"1bbca1eb-3c67-4935-a203-d37cfcd08910","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":161,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"ab71354a-fb6d-4d58-8202-54796f0becdc","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":161,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"2ab117b8-15b8-441c-af03-41ca0e0d3141","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":161,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"7329fa24-5f42-45df-a37f-c902f5804d78","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":161,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"b18879f3-4ba7-4a00-9a25-2c8a8d7c0df7","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":161,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"1040a4d7-f611-4257-b9bf-ea00e5438835","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":161,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"dca419e8-f8a8-4e60-94b0-ece2f8f0599b","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":161,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"de811dae-51ca-4350-b1ad-29d378fc0f9b","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":161,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"5f93ebea-b3a8-4086-9fa5-6599a6cbd263","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":161,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"946b2f06-437e-4504-adf0-92f59d83b01e","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":161,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"c47b4c84-62a4-44f6-9b5b-75cf382535b6","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":161,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"e2bc23ae-9e53-4560-8131-1f1e2abb5444","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":161,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"f8656c87-ff2d-4047-9778-a46ec020ab9d","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":161,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"523c310a-321e-4a54-ba92-7c05fa92fc89","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":161,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"12066fab-818a-4b72-855c-7f4b9a712231","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":161,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"4fc45cb1-aae9-483e-a655-a09b1f0e6427","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":161,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"c1d7396f-53c0-445a-96f3-487e153f20bb","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":161,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"c25cf0e5-86a0-4063-8fc0-ccfd307c5017","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":161,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"167b8a50-018c-4597-8942-24be853aa64a","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":161,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"026973da-3431-4a3a-9791-7d210808fc36","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":161,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"a4333bb0-e949-43d5-b727-ed118e40bf39","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":161,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"52d0e1dd-53d0-499f-8d05-e641abb4ceae","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":161,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"8d2a4d48-8b3a-428f-b266-0ce91fe8e124","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":161,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"1865fd4c-8736-45e1-9403-d5e0c5eb4836","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":161,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"8362eb21-beb5-48f8-ae2e-4ff4a875ab4f","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":161,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"fa360a4b-a248-48f0-9e63-8bad19fd45c8","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":161,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"0e396da5-a755-4db2-b939-63125895c0a8","block_type":"box","text":"in subsequent taxable years.","page_number":161,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"23a77b21-8761-4e5d-8457-ab713f07eae4","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":161,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"89d1a7d8-129a-4647-a50c-23e69e5d3551","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":161,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"fb3f9927-362d-44dc-9729-54221d6d3e8a","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":161,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"e086a2a8-1559-46f3-9fbb-090c7095aaae","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":161,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"23badd97-78f6-4c31-8c4a-f0f243f745e0","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":161,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"862a862b-f179-4442-b445-00627f28ba56","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":161,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"376dd90f-0407-4aca-a4aa-611343a11f27","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":161,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"f522f793-fa0a-4554-90bb-046618a71308","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":161,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"58463c12-b935-4ea3-99e8-a47debd26146","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":161,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"7e36b68b-78d5-4443-8e2b-fc39df026440","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":161,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"0092e4c0-cb84-4509-bb22-2ce3b9266071","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":161,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"e7498410-97ff-48e4-9912-1310bf132548","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":161,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"69b6a18f-d46e-48ab-b058-b21d06ac2a95","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":161,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"2ee346c3-6e38-4cba-9465-3ab2a5895fa5","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":161,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"814e6308-d12c-4efe-b672-70cdb2cdfaaa","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":161,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"a972e459-d996-4959-9832-b5d204ff806e","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":161,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"22759999-9a15-47b6-bf9f-41a4e2ae81fd","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":161,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"689451ec-aa53-4b8b-b8c4-1964feae2d07","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":161,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"2d680ed6-f31f-45df-8fb4-cade43f712da","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":161,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"109cb3ca-f7a7-477a-8b7a-56254eedb189","block_type":"box","text":"dividends under these rules.","page_number":161,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"a4d994b4-0247-4265-bda9-0b673a7fc039","block_type":"box","text":"II-132","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7f9468d1-6661-4bf7-8ff9-c4372d7d98ce","block_type":"box","text":"NM0926U-5975843-161/228","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8272e051-8828-40bf-8cd0-4c1c66350df4","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":162,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"3f724644-5c72-44c5-8ff3-1d83873591ad","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":162,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"03d29a9f-f5c5-4ff3-a5ea-1e4d49f2cc7c","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":162,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"78fcb527-4c97-42ce-b809-b8bfc66feea4","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":162,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"2425087f-0916-4b65-8d9b-6353a2416b10","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":162,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"74f4bb12-8e17-4c1d-b184-18547ea577fe","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":162,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"d99ab85a-dec1-4f3b-b2a8-09e4bbbd473c","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":162,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"d262e006-f639-41e0-b0f7-7ed2ab32044f","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":162,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"d0bdc69a-9465-4f78-8d2d-cb1fdb49aba6","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":162,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"04a63f28-63d8-4f33-aec6-97bf1c6523d4","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":162,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"6a282b00-987f-4fd1-b08a-a66bd14eeddc","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":162,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"344dcb08-4434-49e1-bbf4-148ba8e16ebf","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":162,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"8c787ae3-1107-4b31-acb5-52ce83d6fd44","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":162,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"47c7d11e-d966-4f06-84a7-d96f2af6b750","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":162,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"e4e2a290-a6a3-4e1a-9cdd-0924acb8d942","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":162,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"3334cecf-1e80-418a-8e39-fbb0fa471343","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":162,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"71cb9566-c60e-418e-98c9-12c5f9880500","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":162,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"40a42b08-5018-448c-9ec2-fc80caaabf56","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":162,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"a40c5552-e465-44cd-a5ce-ffa720d9a9a3","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":162,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"9905f4ae-7722-418a-beaf-4fa0ee0fcf41","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":162,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"49326d26-9832-4918-b09d-edb4ac41732e","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":162,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"9e7e81ef-e604-4e02-8776-5e20006825e0","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":162,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"6eea9428-2a2a-4067-bc33-159ae8bc1563","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":162,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"cafc26db-7cc0-4792-b3a2-bbf01a013236","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":162,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"2d0c7de1-207a-4226-93fd-de8479434234","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":162,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"1cd40b75-cd35-48ca-8122-04eb45b63be1","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":162,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"2d255462-6a79-4e07-bda4-8149aef6be92","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":162,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"72cbda4f-d76f-48b2-a5ca-308406c8c7e2","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":162,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"f47461be-9c40-4afe-8270-42e422fdc272","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":162,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"e2a46a29-d232-4749-87a6-03ff1da12864","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":162,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"56a93902-4a18-4213-b69a-808a3ffdb5ea","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":162,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"04cc3072-a4dd-479a-b2bf-06adc46c4cbb","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":162,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"91462e3d-a45a-4a17-a3b0-6fad2c14903f","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":162,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"9c58b077-c21b-491f-ab9e-79fd8466fc53","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":162,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"df44504c-f760-41b4-affb-3b1b365ef798","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":162,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"f2c9dca0-e59c-4733-8e73-7a508d54a9c4","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":162,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"e51cb626-ec6e-4b11-884f-3184566118d3","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":162,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"2ca403ea-621b-463c-99d3-b1a755b3165e","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":162,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"93f8043e-5461-4d30-8e3b-8ec516763970","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":162,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"68ed1f0b-0ee0-44fe-b935-6781f517446c","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":162,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"1eca0a3d-0203-4007-a6b2-299fa20b2826","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":162,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"6b5c3602-6cde-4c18-a52d-e75fa9858a86","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":162,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"f6c0b030-fb47-4d36-8c84-700b7080c039","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":162,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"b0b090b8-c29a-411f-bc39-74698d1bc267","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":162,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"c856e0d7-7d34-4756-b7f0-a03e82d66592","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":162,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"302c02ef-6a1b-40dc-a900-b609b3e7ec54","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":162,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"43877306-1e1e-4f1d-8c77-aacd4f79cb1f","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":162,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"70272992-4447-4dd7-a2b8-fc0e9c580132","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":162,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"751eab28-3486-4f8a-90e2-a0d62c406c68","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":162,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"58b48820-e294-4afa-8e48-e78dd15ea72f","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":162,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"a69fa4fc-b124-41ec-a0a2-2412a1b3ed40","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":162,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"1b55ba79-3bb6-4638-8966-638c2a607743","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":162,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"df1a3ed8-00c1-44af-ad04-c2d53ddcf362","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":162,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"070fe76e-2e6b-4272-b230-dc53aa3a0231","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":162,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"5d4b9e7d-1c45-4357-839f-9b59ba8b0c1d","block_type":"box","text":"II-133","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2d44ea54-2710-4655-964d-551e4e222e24","block_type":"box","text":"NM0926U-5975843-162/228","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"caf08244-6713-44bc-9e65-74e1effe7f70","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":163,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"804946a2-564a-4fc1-8868-624941d3e7ee","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":163,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"8ef45980-bfe8-45ae-b583-0618928a5d2f","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":163,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"4a3f72eb-aa30-4e0e-9f29-7aad3e79f298","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":163,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"4242f018-3d93-4dda-ba92-4378c42de8d3","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":163,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"162a982c-fa21-4180-9081-25cf3fdf3d5e","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":163,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"743340c3-febf-4b64-8406-a0f770086ab9","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":163,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"831b0a5f-c081-4fef-80c3-e5accb9d583e","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":163,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"c7897cb4-a7e1-458c-8df2-e063e3f87e11","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":163,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"6d554393-1b70-4135-ace7-83358d6c2037","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":163,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"92ccdfc1-66d6-454e-85d4-bf5e01b862f4","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":163,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"8e6db0ea-a1b8-4a15-b266-31fc0e53146d","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":163,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"96098e13-4675-494c-be0e-9f4a5f42a390","block_type":"box","text":"investment opportunities.","page_number":163,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"d9367693-8da2-4133-a33d-917c2579ecda","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":163,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"c95ca170-86f1-4a7b-aa20-9c319cc363da","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":163,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"c53b7b0e-2a8d-49a9-93f4-266354d67cf4","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":163,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"0b9c664d-dd10-4548-9abb-48d2537c172a","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":163,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"194facca-8fd7-4ce1-8e98-558be7996cbb","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":163,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"be2c6816-6e56-4e83-b2f2-bed27ac1540c","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":163,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"cae49508-02e4-4c85-81a5-62681148cdc1","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":163,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"801f7fc1-1cf1-4b9a-9580-c98f7a0d6850","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":163,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"7f4ff66c-9d0c-4807-b99f-52a3e6f8dae7","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":163,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"3cc99fce-b713-42c4-94e2-5cb84b484e38","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":163,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"6604db6a-513f-425f-b56f-3dedb3556494","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":163,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"1490ae9d-f4ab-496a-8dc2-5d6d7151427a","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":163,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"2a84ab32-311c-4b83-806c-d514da16cfe5","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":163,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"66a7fa5c-a362-4bbb-8c5a-f9f4f0d618a9","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":163,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"6b4d56bc-0a83-438a-8271-6e29585eb7c1","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":163,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"dc869289-1e23-40a4-ac87-ac2425968585","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":163,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"2d2fddba-94e8-4bf0-a8ad-12d3493a52b7","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":163,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"93e76d76-2814-4d4a-a9a3-936bdabb563c","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":163,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"2e72d864-3b8c-4460-83e0-a2338e84ebb7","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":163,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"46ef902d-83b5-43bf-a0c2-851ee0003619","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":163,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"2213a4fe-7566-4639-babb-a4d2aefcf2aa","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":163,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"7ddb9258-84f5-492f-a47a-6be056556548","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":163,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"3f1bbe55-2927-486d-a8dc-3da03a916061","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":163,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"2847596a-5f70-4626-ba70-fb4441026314","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":163,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"c603c6dd-6131-476d-9ef0-fe9c369198e8","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":163,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"e496509a-e7b3-4b86-a034-011d4e919a53","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":163,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"1d2e94f9-49ae-49d8-b74a-85e5d0ce60f5","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":163,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"32ec055b-952a-460b-87a1-3b2bed565695","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":163,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"65fe7ecf-a0c8-4dfe-a8a7-e94d6a99ccad","block_type":"box","text":"positions in its portfolio (","page_number":163,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"a8adad84-d829-4fb0-8d08-915ce53bd3e1","block_type":"box","text":"i.e.","page_number":163,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"0b501fdb-6126-41d1-92b5-ce5f0f9503e6","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":163,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"bca80750-b019-45ae-9231-2a1c6f13b168","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":163,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"e29461c4-78a5-4388-88b0-c75dd89a986a","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":163,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"b0296202-70a6-4b89-aee9-0529c3ef1394","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":163,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"04b16bd6-4f20-4aba-a28d-825db76fc724","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":163,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"e421bad2-f8ec-40c3-95dd-2234c08a375b","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":163,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"ab85335b-a3f9-4f80-9dfc-79345816eb3d","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":163,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"5dbb9255-738d-4cc3-bd0b-a30c5f7d9ee1","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":163,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"8e135964-77a8-4581-bd5a-e99df463d20f","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":163,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"af64c422-9772-4616-a5d7-6500aa80a9fd","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":163,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"9a9ad2fa-127f-4e98-a071-6553cffc7750","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":163,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"829e7acb-a9da-47d5-81ab-67592f820e75","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":163,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"f7ba8c27-1339-47ef-86a7-8e96f01e982a","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":163,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"1c3ad3aa-9c62-4e51-a81c-985784846d21","block_type":"box","text":"II-134","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8eca7cda-2b89-41f4-a422-8777a9c8f62a","block_type":"box","text":"NM0926U-5975843-163/228","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"736a43c4-9124-469d-a486-43d9876757a8","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":164,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"b14611a6-d0b0-430c-8f57-ae514731ed20","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":164,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"5b8742c6-941d-47ea-8ba6-d77b176cc714","block_type":"box","text":"capital asset.","page_number":164,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"5f05e387-8b5c-49a3-b171-d6399426f788","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":164,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"721919d4-0c44-49c0-a51e-b12270861bc7","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":164,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"990be27a-c384-4f35-805e-def3239d850d","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":164,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"b0e6edd4-b26a-45ba-83d2-c2d6439c7613","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":164,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"bd1dea50-d771-40a7-a3a2-a775cf014eb1","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":164,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"b3ad7b75-a639-4991-bda2-352e95f85b78","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":164,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"d27f4050-804f-4db7-9e7f-3c3183e71f3c","block_type":"box","text":"Fund were to invest otherwise.","page_number":164,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"d7141ca8-1d9c-4dc8-b76f-076c567e26d5","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":164,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"95ea5205-954b-4c38-89b8-5ffba823b2bc","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":164,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"1f4e50b9-6006-480b-a7d6-0199954a5bc7","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":164,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"1799c66e-884e-47d9-a662-b3400cc796af","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":164,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"1be46260-5805-474d-bb1d-c257bdaf806f","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":164,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"3c6faf55-71df-42d2-8593-95f839b950d3","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":164,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"6c9d999c-2109-4b7d-97d0-60473f970c42","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":164,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"8b817b16-3ee3-4093-80ea-46dff585c608","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":164,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"7b137ff0-2c38-4817-9182-1ace15069671","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":164,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"1ba1eae0-df3f-4759-a070-ef5eb608edcc","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":164,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"86f35faf-783e-4f33-ae63-176f2090a8ba","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":164,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"3d9cf6ab-922f-4413-ba2e-65e8b7885c5e","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":164,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"ded9b719-8e98-489d-a33f-ab696268e701","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":164,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"b54a554b-44b3-4e9e-a722-4ed330ba5a1f","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":164,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"14532fb9-59f2-458b-ab07-fe50094c74b9","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":164,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"37cb256e-71de-49af-9ab5-42b74aa6e0a3","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":164,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"895140ce-50b8-4786-ace5-628132e6c953","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":164,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"2647ffb4-81da-40e6-9995-9f56fbc7a011","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":164,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"244b3988-bb06-4a8d-a0b3-631d0540c280","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":164,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"6a383ebd-af63-4ab9-a7fe-0beb43df9747","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":164,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"64a34269-ec67-4ba5-a0ac-23c2f96d60c0","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":164,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"1e86cbf7-5fa7-48a3-a7cd-e06573c9a053","block_type":"box","text":"PFICs.","page_number":164,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"b37ad0b3-130d-418b-9f38-91e1c5d7c014","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":164,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"51305d7a-1863-4da5-8a15-748beb0090ea","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":164,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"91668e35-24a4-48d3-b61a-0c5e3b141fc6","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":164,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"04e6f0de-fce6-47d8-8ee0-dd62d9120ce5","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":164,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"303c69b2-f5ab-47c9-8bf1-dee1caa5d3a4","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":164,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"cec633a2-05fe-47d0-a668-da168fb79e6c","block_type":"box","text":"difficult or impossible to obtain.","page_number":164,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"669fc43b-2d6f-4580-b3ca-3b80dc3afa5e","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":164,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"11684f5b-b322-488f-b627-7222535649f8","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":164,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"f34d58be-2b1f-4e7a-8a9b-0ce6079927e0","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":164,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"2ac9fe88-ae29-4efb-9702-b86f4eadc0ae","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":164,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"96fcb28c-5153-4faf-acef-f8e3e6d99ab6","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":164,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"b550ee06-213c-42d7-9152-7850206b54e7","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":164,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"505116a1-6780-4787-8a96-2f33c0fd3a2b","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":164,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"502c2143-e49f-4f91-b33d-b09f17a49df9","block_type":"box","text":"Municipal Funds","page_number":164,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"e62b8bde-5de0-4fc1-a034-9aa081982689","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":164,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"0863471c-03d8-431e-8d46-72bc3b672220","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":164,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"10400c46-336b-4f66-87ba-1a9b808984c0","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":164,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"1ba83920-e7b2-4c31-a6f1-86040e2acf5c","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":164,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"74f166f3-94af-4655-8e5f-c84bdd754069","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":164,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"8a6e4c64-5929-4d41-a9ab-ee3e350d7eea","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":164,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"d8e3eef2-5b5c-4acc-9047-abc6ddf5df95","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":164,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"2176f5b4-6acd-4b70-a6ed-904cf1b51517","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":164,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"e93ed118-9c5e-4312-b187-b0163cd1b193","block_type":"box","text":"II-135","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6df60a37-e7d5-43fb-9de5-5d63e90e7920","block_type":"box","text":"NM0926U-5975843-164/228","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d253001f-5bf9-4186-9787-f5e913d912f8","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":165,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"2a19cbd0-e788-413d-b710-ba4885b0e0bb","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":165,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"2ad540a2-6d0b-4b9c-af45-ae41cdc1bdd7","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":165,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"fde5b127-13b3-4013-b210-ff3160eab456","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":165,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"0f382647-9be3-43bf-b174-9b28e00d80fc","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":165,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"bc37b5b4-4ab3-4e7d-9b6d-40d5a6fdb4e3","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":165,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"6608c916-b244-4d0b-9b23-705b4675c804","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":165,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"d5f15bab-b9da-4a19-924c-50a342a64388","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":165,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"bd1d77b4-27e5-4166-922f-9051fc7caadf","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":165,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"de154e70-33a4-4cb9-8c90-50ade054aa09","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":165,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"7ca78cc6-66f0-4ea5-964f-5a49ea57a710","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":165,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"5a0ccd0f-4197-4905-b2fa-ac478a4b149a","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":165,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"a85bb7d3-366f-4cf2-835b-0664c683d6a3","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":165,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"5715d726-accf-4880-a841-035cf3c29d19","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":165,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"978e767b-6106-41eb-9662-9669fb458f08","block_type":"box","text":"constitute exempt-interest dividends.","page_number":165,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"b7e24c87-668b-4050-bf96-7cf6111c22d5","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":165,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"aa200772-d32f-4e27-b386-d60106e367a7","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":165,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"47a9df3b-bf5b-4c6a-bfa1-308c3f988b51","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":165,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"60c1493e-3bfc-4a50-a24e-630a70ab7fa0","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":165,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"7b10a749-85dd-473b-b906-3509886bb2b3","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":165,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"f91da873-4ed0-427b-9312-48c923454dff","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":165,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"32d20447-cfba-436d-8edd-437e60a1f5d0","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":165,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"22f7bfc3-fefb-424b-bd76-cc62fdd3413c","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":165,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"750d79ae-46f8-4536-af60-fd03c5e46412","block_type":"box","text":"income dividends received by shareholders.","page_number":165,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"847721d4-5e5b-4b85-88a8-920a401483ec","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":165,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"9c8b1466-d9f5-46b3-b06e-61ba91091e07","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":165,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"faa98c5a-5991-4dc7-9797-87897c98eaac","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":165,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"aa005aa8-e942-4eda-8b7f-ef585265ef82","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":165,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"b2fc4e07-c23f-4dd8-a892-f638af8df938","block_type":"box","text":"the accrued market discount.","page_number":165,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"5ddb95c3-51f4-48d8-b0bd-91a6e3762079","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":165,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"f55c1b67-2644-4dfa-af64-a75d161cb43e","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":165,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"329752c4-8588-4c53-a163-d759a6a4c46c","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":165,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"1d56d44d-2e05-4d50-9e1d-219d8342b0ec","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":165,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"08c7039f-62e4-484b-bcdc-70f8bbd2afa4","block_type":"box","text":"e.g.","page_number":165,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"7c7b975c-cb18-493a-836a-e4acb1bddefe","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":165,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"3b879a07-193f-4da8-9c09-11d9b4e3503f","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":165,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"2cebdd67-84f4-4aec-907b-ab667f144441","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":165,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"8f34dc1e-dcee-452f-834e-1bf1e114e709","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":165,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"4a997eb9-204f-4a5a-8c41-85e6b4dab7d7","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":165,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"dc0bbcf6-3dfc-4e7a-80b5-15bbf907efa5","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":165,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"1a9df5fb-0ea6-490b-aaf0-046523622d98","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":165,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"96097e23-0bc8-435b-a9dd-d7871f018b95","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":165,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"15adf3c4-258d-4d3d-9776-73dff40fef93","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":165,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"7dad686a-5576-4a56-9bb2-2f2d706eec24","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":165,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"19e8b895-cf5f-4f34-8cd8-012e7f3b5c5b","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":165,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"ffa931c2-7acd-4026-96fd-25ddd13ba47d","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":165,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"9492d61c-d0eb-4e9e-a365-f049c855ea8d","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":165,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"f5e6b4b7-f80b-4fd0-93cb-3815b61f9a14","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":165,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"69743306-5a39-450b-ad64-7dde849061da","block_type":"box","text":"within each applicable state.","page_number":165,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"d0cf5b43-4069-47d1-8c35-7e1dd68da45a","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":165,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"b7b4050d-878d-4a53-b532-fe4c6edf17d1","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":165,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"4c94ef88-9bd0-46f6-80c3-01e86da913f0","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":165,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"14de721a-823e-4669-ab2c-b3f568ff9e81","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":165,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"fb72bb42-6acc-431a-a22a-cac2caa0ac75","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":165,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"b98e4674-43fc-44f8-a754-b676b38a4e37","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":165,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"4418d1c3-de0f-4ab4-9352-96a42b5a3849","block_type":"box","text":"II-136","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ce31bcdd-5280-473b-8efd-6dda1b909481","block_type":"box","text":"NM0926U-5975843-165/228","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7cff922f-e8d6-49d5-81b5-82ee3e1d3a54","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":166,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"ee173da9-6aa5-443b-9ee3-080c3faa1977","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":166,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"b458f724-a9d2-47ab-b9b8-f4dbfc19e77b","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":166,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"70b207a1-82d3-47f9-8d67-766abbc7d390","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":166,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"104942e6-a277-4256-9daa-837796f81b86","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":166,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"6fee498e-5c88-4a33-b9a7-51dde91c280f","block_type":"box","text":"exempt from state income tax.","page_number":166,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"46ef03ec-2d4b-4f1d-9529-958bad5c3b37","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":166,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"a9cbf4b3-4303-4bb2-9223-0470451ce103","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":166,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"d4d322e5-061b-44e3-8f40-4ac50872b167","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":166,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"14983058-c535-4df9-9aeb-0fc83ea32bc8","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":166,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"bc3905fc-5a7e-47a9-ae1f-f98b511a5622","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":166,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"c18bcf17-ec7a-4c2c-9943-ee8bcfffb4fe","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":166,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"88d4728a-e868-4128-ab2f-faeea57c0573","block_type":"box","text":"decisions may have a retroactive effect.","page_number":166,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"6f88035a-cd9f-46b9-9878-b55a1acddb35","block_type":"box","text":"PERFORMANCE DATA","page_number":166,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"3a403bd8-dfd6-4ec6-a67a-9fad9bcc3d18","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":166,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"2900b7db-159e-42b2-b0fa-15485aa82e7f","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":166,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"b877ef40-afe9-47e0-9dc0-2cb615b72733","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":166,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"1ce15c9e-3fbc-415a-a70c-760684a117df","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":166,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"f11aa2bc-3ccc-4ebe-a6a4-fff4e45be354","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":166,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"35a7a41a-5645-4bb0-9c56-f89b0c41ac4d","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":166,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"2d3e063d-3c3a-463e-9458-02ad021722c4","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":166,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"3cecb808-b88e-4e4a-ae01-97a6d794e089","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":166,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"2fd214e2-7304-4ee0-8163-b517b0024dcc","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":166,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"bb68aa92-35ee-4b4f-a1c7-ca5f44eee7f5","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":166,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"6e318c79-4dac-4846-9c52-2e799a9ccfcc","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":166,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"b29ab451-cc69-4006-9c50-0c34e951c15e","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":166,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"3a0eba6d-7b98-474a-acf6-f09d27a56e1a","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":166,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"bb27beec-5283-4466-9047-48edf54e532a","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":166,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"8004ad64-20a8-4311-8e62-03a155c99207","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":166,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"f85e5495-b0b4-4ab9-be54-46457d957794","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":166,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"1eb42f7e-6c3f-496d-935e-6183a4e2493a","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":166,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"47464f95-b505-4b2d-9617-da470eff3183","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":166,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"d527765d-99f7-485b-b0f9-3e34a51bd03b","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":166,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"4e7637f2-e3ce-43fb-a864-d18a1eb45a67","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":166,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"b08ce621-d0cc-472a-b7d3-67529fc3df9c","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":166,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"dc0858a4-7d89-4a5b-916b-dacf5661c20d","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":166,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"01b21bf5-e81f-492e-a227-e7ea0bd8e0aa","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":166,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"6e2ea319-ae2e-45aa-876e-4479b3e832a8","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":166,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"f199b15b-0139-4a8f-b155-290dc7530f91","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":166,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"eab4d6ab-320c-42a5-ab71-012fbfe4ae4c","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":166,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"47e8c3f1-1510-49e5-8381-42549df3e670","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":166,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"d9aebef8-a5d0-4734-b893-75da064b7f7b","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":166,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"b28c7a6a-3dcf-46b6-b364-fdff7f8ac3c8","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":166,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"64bcba44-f0be-4e02-9b31-8968fbb280d1","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":166,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"161692c4-aba4-4a7a-bb6b-288bc14bf947","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":166,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"81bf4ad3-8a7f-41a6-a469-f5332dd8a815","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":166,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"daacc63b-2b32-41c9-b740-90e3c585f0b6","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":166,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"aecb5f2f-fde4-40c1-b1a5-61792780abc3","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":166,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"f48975eb-6d7d-407a-88dd-5adbab729d13","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":166,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"7a54f7a9-164d-4108-9d19-4ab7ead7a9cd","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":166,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"c2941aaf-e3e6-41c3-ba47-7f508fc2ebb2","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":166,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"66f9a0cb-e5a3-47ae-8837-8e7898eb7b96","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":166,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"a4a075cf-9895-4cf2-be81-d6bdbe48c94c","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":166,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"2e7d1935-60a9-40c1-bcc7-643c192c0cbf","block_type":"box","text":"II-137","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d23908fc-6ec4-4cdf-b4d1-29b1cc68556e","block_type":"box","text":"NM0926U-5975843-166/228","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5b9fc76e-6750-4f70-91f3-4d682aec768c","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":167,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"1fb720f8-4171-4bb6-9e91-3f3b706a2763","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":167,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"787d0267-cf4e-4b83-b4e6-9dfe5f891ff0","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":167,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"47370a3c-590f-4516-9460-c173ac3f9706","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":167,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"f43decf2-17fc-4327-abb5-43ab27c6b370","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":167,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"f39dd7ba-1755-4f7f-827a-3b4857d32227","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":167,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"89a94563-4db5-4924-a950-c772bf7b683d","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":167,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"7e53b9f3-67bb-4271-bdde-84acdd060891","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":167,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"73e3985b-996b-49b7-88df-4cbc459e7b1f","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":167,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"cda31996-818e-4a1c-8bca-40df80b0769d","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":167,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"68e46093-0587-4d91-83f5-a98ccec7783d","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":167,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"132bf2ab-4e88-4181-aafa-e5cd2436321d","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":167,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"86395aa6-abf3-48af-869e-844c737bac02","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":167,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"a713de5e-f667-43f9-91a0-30052e1de7a7","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":167,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"0211cf01-d248-4aab-b6b8-335b0b703d4e","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":167,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"94290dc5-0070-4a9e-998d-ddfb4b3dfd1b","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":167,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"e635cd73-3b07-4531-aec0-ab04426e8d6b","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":167,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"57c60c6a-5962-4a1d-bead-996fa510c7fa","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":167,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"face51b7-d24e-4fea-95b5-8bed2f40adb6","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":167,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"cc60a016-2fea-471f-a17c-bcaa5a4f2d32","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":167,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"2d75dc7e-d13e-4737-854c-8b47611628d9","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":167,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"8e2bd6c2-f375-4273-8b3b-893708aff8be","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":167,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"320f3ca6-cbde-4a0a-b6b0-db31c860ec75","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":167,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"a61ef14d-7a0d-4e61-b5f8-4c0eed320dbf","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":167,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"fd7c33bf-dabd-47d9-9e64-7fec20bc69d0","block_type":"box","text":"less than their original cost.","page_number":167,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"281cbed2-5656-4089-a6b7-df11be21ae65","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":167,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"491e9a54-51fd-46fc-ab99-6cbbb9e16004","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":167,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"1b4a65d8-2639-42c5-bca1-0b61ee6bbc67","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":167,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"b04e97f2-2f2d-4172-9869-22cf73d7114e","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":167,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"a14a7c1b-2039-490a-b199-1ba2b77cd74a","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":167,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"82cf68f9-6854-4025-88f7-3b57f2dc9b8d","block_type":"box","text":"lower amount of expenses is deducted.","page_number":167,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"53201efa-bbed-48af-b6a6-4cc4118b93f6","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":167,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"215a99cc-5ef3-4d75-8cb2-e65ee21f1163","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":167,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"1cf1e61d-0754-4e54-a221-05ea96b08311","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":167,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"03d7c333-ef98-4e03-9492-aa51c023266a","block_type":"box","text":"Money Magazine, U.S.","page_number":167,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"b1a43230-1dc1-4384-b14e-b777ac62fde6","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":167,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"27dee5c7-b8b0-4e3c-acd8-c142d6a22116","block_type":"box","text":"or other industry publications. When","page_number":167,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"2a2c36ce-21f1-41f3-94c4-1ae072057c2e","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":167,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"b806d8a6-7715-4c12-ad37-56753a23dfbb","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":167,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"588a3632-3e7e-4a34-81a3-1600a117c3d8","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":167,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"06aa434c-9c31-4a4c-b683-869c43e2b934","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":167,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"e707d670-525d-4b36-91ee-edae1fe331b8","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":167,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"dfa07b70-93e3-4bf4-9ad1-f3debc48d53a","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":167,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"889ab925-ef82-4caf-a4b9-02f55499d8c0","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":167,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"7044ab19-703a-470c-9932-b6712edc2f83","block_type":"box","text":"developed by Fund management.","page_number":167,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"a8b90db1-3800-4974-9d32-a4fdcf364486","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":167,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"2b1d61db-2e88-48d1-9f67-21ec7f0901ce","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":167,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"a82e53eb-7fa5-4cf2-986e-b8e4154c9bfe","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":167,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"60c5c60d-0df0-4ae9-b1c9-51be72085aa9","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":167,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"6a08bb13-5de4-420d-a020-9d8f682b6a5f","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":167,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"39dfbc5f-e849-4d71-86f5-a674e03ef72b","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":167,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"113c0b2f-87f0-432b-994a-8999f10ac2e8","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":167,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"87ee812f-6603-4b4b-907b-83db5147c38f","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":167,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"34424dad-fb87-4ed5-bd2c-5bca0e376d01","block_type":"box","text":"II-138","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"31e834b8-878e-4029-94c7-41e0ce859127","block_type":"box","text":"NM0926U-5975843-167/228","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6256fb1a-f6bf-479f-a885-c34efc0bd2d0","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":168,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"7faf3dfa-5c8e-41ac-9203-c24a829f9676","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":168,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"dd84beca-6fbc-46d1-9ca8-a124b6803ff8","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":168,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"16b51273-aaa0-4cf6-bd61-1d902b0dfedf","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":168,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"05817928-89b6-4aa0-bf91-0e817aa49503","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":168,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"db3348b7-811c-4ceb-afb5-887eebd87f37","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":168,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"9a041375-64a6-49b4-87ff-9f2b66779e2d","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":168,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"05fea917-a4f4-4c38-b14e-cef885e78407","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":168,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"2dff61f2-d5f8-4e58-8f3b-3278375a1d08","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":168,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"70cdabce-a199-4797-945c-56e5fe95fa29","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":168,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"20f97a0f-b29d-4cb6-997c-157fd95ce59e","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":168,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"5062a2c9-b4d4-417d-9739-a425dc2f6e39","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":168,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"a358fee1-a136-4b07-86dc-68b632e42416","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":168,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"56390780-aa71-4d55-a3dc-74203ddf2e99","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":168,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"39872e18-5352-4b7d-9495-192583282903","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":168,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"3975d02c-5307-4858-b74c-820f91b1c84e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":168,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"b8d11f6a-1580-4821-9571-077d87245ef4","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":168,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"8117394a-632a-430e-b106-62cc11f1325c","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":168,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"554e649e-5e3c-4aa0-85ea-002b881bf5e1","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":168,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"9cb11ea1-8935-4ffa-ada2-f3ab0434deb3","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":168,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"4c9685d9-43de-4381-b602-a300f6170c83","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":168,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"46576e48-4289-4d73-8335-b822a1e9e527","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":168,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"6489e155-8478-497b-9ede-81cd832f4d02","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":168,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"b88e3e04-a8cc-4a4a-afac-9e118443cfc0","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":168,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"b5f94601-843d-456d-ab4a-7808b6088e73","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":168,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"ff4e1e25-ac43-43e9-8ae9-001c1bf11315","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":168,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"e36dfd03-9a2d-4864-a5a4-b870edeccd35","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":168,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"1d1f310a-2a11-4a1e-83f7-e5da18f3472a","block_type":"box","text":"GENERAL INFORMATION","page_number":168,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"b69d4edc-c2ef-4e04-bb2b-f6938844fc47","block_type":"box","text":"Description of Shares","page_number":168,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"6c091ccf-da7b-405c-8d9c-101421e3225a","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":168,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"5eaebd07-4ca5-4b48-87c7-1476828c76b2","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":168,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"f1a6f59b-2446-4676-a573-c6c32909779b","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":168,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"547aff17-be70-458e-a397-8553e3543202","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":168,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"ed709c35-c78f-491f-ade4-57e2d137fc6e","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":168,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"c74415ef-9750-4be0-9368-04ce7116aafa","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":168,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"46c7a8b1-9373-410c-836b-e3624b5d1a0f","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":168,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"53a59295-e2e5-4f7c-8489-304a89665f7b","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":168,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"4ae060da-e8d6-469f-8eab-f7cffd3eb83b","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":168,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"2d38f834-f10f-4415-94c2-3577c2581a52","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":168,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"b4509871-b984-43e5-850b-ccf7680ccda4","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":168,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"a95df9dc-4bd9-4117-aa54-90bda39a6d67","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":168,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"4d32a029-7d25-4930-911d-66da0d8e2d66","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":168,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"6c08b477-aabe-4bd4-a44d-cc66612ed1e4","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":168,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"5a79571c-f7ae-427b-a8db-1c5058462345","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":168,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"ab5ff4c6-bcd6-484d-8221-6220481cfc86","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":168,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"023ebd77-aa68-45a7-a46d-26e399835345","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":168,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"f143d09e-4ea5-4bfe-bb5c-cc9207ecdaf7","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":168,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"6f0ed467-75f6-4af5-bcb8-126c8c08ece3","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":168,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"60197617-5a5b-4481-9182-962d1fe53191","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":168,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"5bbcad29-974f-4704-a969-ea113d341e95","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":168,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"3dce75d3-0d1b-4d22-83da-51781a09d60a","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":168,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"26dfaf39-38f7-400c-b22b-2612e2ea0c97","block_type":"box","text":"II-139","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fd7f069e-1754-4b93-ba58-49fdec4f4829","block_type":"box","text":"NM0926U-5975843-168/228","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"778ae3bb-9447-4999-8468-d981c8f92169","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":169,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"4166aa6e-5041-44b9-999c-a2dfc36de0b1","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":169,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"574131fc-543b-4922-8bdd-50ac42d9bcc7","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":169,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"e9d30a5b-d3e9-47be-90c4-f1c9cace1638","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":169,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"624e8e3a-1ea4-42d7-9bda-f377a4b2461a","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":169,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"e2988e41-8dab-4fe0-b673-5942f921e494","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":169,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"5310006f-fa87-43f9-917e-66524f3bdd2d","block_type":"box","text":"Additional Information","page_number":169,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"f42b00be-697e-4673-99bb-87f3dcb5e8e5","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":169,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"10da2dec-7f15-4c9d-8c24-24735bc38a56","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":169,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"f8324f55-5d44-4cc3-8a29-4497498f0f03","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":169,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"30a3aa09-6d37-48e8-806a-cb456a81939d","block_type":"box","text":"such name to any other company.","page_number":169,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"8ecc2454-db15-4e86-8af7-51088ab12bc8","block_type":"box","text":"II-140","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2770c2ef-6b8e-4f37-8893-743b398fe779","block_type":"box","text":"NM0926U-5975843-169/228","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6fd541f7-ead2-43e4-a2fe-40309f9431b7","block_type":"box","text":"APPENDIX A","page_number":170,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"656382c6-1c6c-417d-96fd-f6d303bc4215","block_type":"box","text":"Description of Bond Ratings","page_number":170,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"9da23c57-70dc-439b-a170-70e99170071e","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":170,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"1435995f-c587-4e6e-99c4-e1deaa273cba","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":170,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"d7961b2c-7552-41cf-b765-048e335e718b","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":170,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"c69a21a6-9ae6-4b29-91c2-03d2eba3371c","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":170,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"33756790-330f-4c1b-83dd-7af6f8bc1c4c","block_type":"box","text":"securities on a particular subsequent date.","page_number":170,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"cc0acd0a-7ee5-46a9-9abd-c6c7ea90ed3b","block_type":"box","text":"NRSROs may rate specific investments (","page_number":170,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"2fe1fec2-2663-4036-8dc9-a028023d67a8","block_type":"box","text":"e.g.","page_number":170,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"3a222a60-c82e-46db-b04b-ac043033c9dc","block_type":"box","text":", bonds), issuers (","page_number":170,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"a3d381ed-6875-4c4c-a2e7-d8d9b6a4b210","block_type":"box","text":"e.g.","page_number":170,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"f9d3f964-0e75-4824-8c36-be83f9f44f64","block_type":"box","text":", corporations, governments and financial","page_number":170,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"e4f13f1c-086d-481a-9e68-161b8e26be33","block_type":"box","text":"institutions) and/or programs (","page_number":170,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"85f28a6a-697e-4b6d-b128-eae56a0a3b49","block_type":"box","text":"e.g.","page_number":170,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"6d03ee3b-30c9-4684-87fe-54e71910a830","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":170,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"7dbc1246-3f96-459c-852e-02357ce675b6","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":170,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"12513e92-ab6f-4488-a19d-b48c36d95caa","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":170,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"f7ac8279-3f8e-4391-895a-9e9fcd92ce3a","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":170,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"013f1581-54c1-4086-8b02-887702e5e1e5","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":170,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"7a892770-7469-4172-859a-5343d705827c","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":170,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"092161fe-36ff-4c42-9c03-e47ea9d0a9be","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":170,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"9008e0c6-8331-43d2-b4dc-c76504e00f07","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":170,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"6cf10976-aef4-4561-a97b-fd7b7a28fa88","block_type":"box","text":"security (","page_number":170,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"9502994b-25c1-48e4-889d-ae9cbd483a67","block_type":"box","text":"e.g.","page_number":170,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"36ae0df9-5293-472e-bfc5-54ae56f2712e","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":170,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"556ce794-4f79-4cea-9b2c-0acb0fc49ebe","block_type":"box","text":"highest of the multiple ratings.","page_number":170,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"c1d813cc-ba6c-4a30-8173-5b5a9acc0238","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":170,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"8f422b0b-535b-494b-807d-21f6cc2b1c0f","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":170,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"3326bfb3-3038-4c8c-9ef7-2c24b86d96dc","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":170,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"91404724-beff-4e8d-809c-124de47eb349","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":170,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"6c279932-c00b-480f-a14a-52e9f1539611","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":170,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"2b4e7fd6-91ad-4c9f-a17b-3108e0108095","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":170,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"9fda4f77-14f7-4ec2-847b-0174a291d79c","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":170,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"a1f0de8c-e889-4cda-b38b-4d30f73ff61a","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":170,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"bde815b9-0c4a-4c44-98aa-e2bcf1aa7506","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":170,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"8b6859cc-aa43-4c14-aaaf-aee505253172","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":170,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"6f12f8ed-4bcb-4ae8-8665-4b1d26093673","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":170,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"2a8acca1-ebe1-4814-9eb2-3c5ec9d92e23","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":170,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"764a8f88-9420-4efa-8257-3e7799380c54","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":170,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"641b307d-dc52-4f9c-becb-4c54d93ede35","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":170,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"653e11d8-f0a8-4b9e-b12d-ab0427414a88","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":170,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"cf719090-cfd9-4b90-81c9-99e3435460b7","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":170,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"c403608c-42c9-43a2-827a-85653feafc8b","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":170,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"19885192-7bb1-4935-bb2a-7fe21e5a1661","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":170,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"a1a6cc0b-a2f1-488c-b03d-fd7c78295326","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":170,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"7d78896b-08e3-461f-b51e-d9b48d24c471","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":170,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"4a9f0f0c-f285-41a1-bf69-8263108b136a","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":170,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"713640e7-2aa8-4a83-b737-a0ef9a0979d2","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":170,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"6ed35864-286b-43fa-81ec-f1a5a882b88a","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":170,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"b86d9efe-6f5a-452f-b761-75da807240f3","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":170,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"b49207ac-c8b9-4090-aa6e-1c90a7e383dc","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":170,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"dc647972-f3b4-4904-a0ba-d78f338291d2","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":170,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"7066564a-0f25-4812-823d-d65e8e92bb60","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":170,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"5931d5b8-7484-4c40-bca6-887bd6d2c18a","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":170,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"7cd2e3f3-c037-425e-89e0-10408e3969f0","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":170,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"4410ea92-8871-41ab-ab88-7a7e280ae800","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":170,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"7ed14b97-e89f-484a-8bb7-cc34011e1c43","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":170,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"2afbc366-e641-4b22-8293-1c8b44117427","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":170,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"dc0ed352-9f24-4a5f-98e4-4a2eb7391529","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":170,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"ec2df2c5-8099-456d-95bd-7a6f8a8e23d9","block_type":"box","text":"upon standard sources of variation (","page_number":170,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"81f85570-3e38-4b36-8fea-64a3e7b6a35d","block_type":"box","text":"e.g.","page_number":170,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"9d375c8b-f1b1-462a-be18-a6e45776194c","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":170,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"aa55c02e-edc5-44cd-ab31-f76f9d2dd623","block_type":"box","text":"A-1","page_number":170,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"3562876d-de16-4aef-88c9-9eab253245a9","block_type":"box","text":"NM0926U-5975843-170/228","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e2ee9c93-be8a-49e9-80f1-9749349d8793","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":171,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"a36a8814-c012-4d2e-baa7-ebe8745a30f3","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":171,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"3d11a016-2499-48b3-a045-b17c506fee6a","block_type":"box","text":"e.g.","page_number":171,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"8b4062cd-9c05-49ad-ae6f-f57e7f906bfa","block_type":"box","text":", equity indexed), absent","page_number":171,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"b10bbfef-fcd7-46dd-90e4-3b18cb3d22a7","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":171,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"22bd7048-623c-4031-b825-64c1e38c2ce3","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":171,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"f4850150-3c19-47cb-aa46-338afb0f42fc","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":171,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"f650eca6-73df-40ab-88d8-475f85f7522f","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":171,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"1c79a472-f9a9-4af4-9a27-4774d3174e2f","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":171,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"79a5df93-3912-48d1-8b5f-68dbefb6febd","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":171,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"7b774358-4841-42cd-b2b4-b9be5344be0c","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":171,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"6d7a9643-1fa9-4496-bb25-2352d549d11e","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":171,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"787f2678-2e9f-49fd-befb-25d8b835e196","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":171,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"5d30d234-6d9c-4fd1-9de4-c8b4e82794d2","block_type":"box","text":"i.e.","page_number":171,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"0be3f729-a590-4202-9265-1ffdc6a69c7b","block_type":"box","text":", ratings on nonfinancial","page_number":171,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"66a16002-6059-446d-a763-641749a5e9ad","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":171,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"385c1d0f-e3b1-46a4-bb94-1f1ed567558c","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":171,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"2f4ddc19-e6ff-4471-b2f9-2ae370d8502f","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":171,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"7cd41490-0b15-4983-9d32-a67fd9a2130e","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":171,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"430e630e-aae4-480f-b87f-5e2914e482a7","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":171,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"b9356a71-cd15-439f-9070-6fc9bc928fdd","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":171,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"f5c70688-de2c-4f8e-854d-ef9cb6c7bcd9","block_type":"box","text":"of time.","page_number":171,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"d1c9e968-240c-490e-b405-54630f924fc3","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":171,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"aac5181b-0221-4126-ab59-56e290d254d1","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":171,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"9627b4e4-c442-4a96-8bd6-75114b7d0c05","block_type":"box","text":"risk.","page_number":171,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"3a0d7bfb-864d-4e91-ba13-232fbca3cae6","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":171,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"516c88af-6e2b-4896-9772-3352cd4905b8","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":171,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"fccfe28e-7392-487d-a488-a7d154554c85","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":171,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"28aeffa3-ad8b-426d-8ebb-57c06d4ebba7","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":171,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"74c3ee79-ac7b-44b2-87c4-db7d252a44ab","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":171,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"0c880d36-e320-4667-ac96-86f76e0cfacd","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":171,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"f980bbc3-6ef9-42b7-92d8-26aaa52fe6aa","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":171,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"77a248c6-90a4-4284-9343-9a092d0054a4","block_type":"box","text":"credit risk.","page_number":171,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"ce122b9d-6a8f-4437-a276-366f175c5661","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":171,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"29f52242-d3b6-4f4f-afc0-92fba8a87156","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":171,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"8a5148d9-c8b0-461f-baf8-fcb2b29eacee","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":171,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"08d6a774-6519-45d5-9c3f-f4265612b9cb","block_type":"box","text":"of principal or interest.","page_number":171,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"96af73a9-5f2d-4941-afcb-49313016c41a","block_type":"box","text":"Note:","page_number":171,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"9f6cbb87-0596-46fb-b95d-d785ab2dc01a","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":171,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"29ebc585-b21a-471e-bcdd-ab87bcfbf8ec","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":171,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"bdf8a417-a3b7-4f04-b50b-05ab191b01bd","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":171,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"bba510d6-b8d6-49b4-aff2-8ee12d20418a","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":171,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"8c60cb91-e2cd-48a9-ac97-90ee6d80563f","block_type":"box","text":"companies, and securities firms.","page_number":171,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"7365eefc-7d0c-43ce-9ec5-3d38712134d4","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":171,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"52cad745-9a67-4ec5-810f-51ef0cb6b601","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":171,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"d101b6df-4529-45ed-bc99-ef72ecc6f090","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":171,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"7049915c-22b2-41ed-9971-3da11ee1dbae","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":171,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"aaf9d661-3cdc-45fe-984a-f192917de86c","block_type":"box","text":"that security.","page_number":171,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"ada3ab5b-9e1b-4119-8c06-75ca472f388a","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":171,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"1918fbb4-4699-46fc-a99f-b8e1c8e485cc","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":171,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"3f0789f2-6af8-4177-8903-f7e5710e7123","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":171,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"0b62fd77-edb3-460c-bc4c-8ffe943a14b3","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":171,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"410b8f06-2234-460e-9d4c-7413524b724e","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":171,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"924c864d-7924-4d58-9e96-4ef6e1ba48e3","block_type":"box","text":"categories.","page_number":171,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"9e4633bd-d8c6-456d-a7d5-8c9ca582e5e3","block_type":"box","text":"A-2","page_number":171,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"d89a57bd-aa9a-459d-8091-826099c103ef","block_type":"box","text":"NM0926U-5975843-171/228","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"710fbf11-7059-4ca6-b723-fa12a66a8821","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":172,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"6d3e5e6e-707a-4180-a907-c24401151dc8","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":172,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"430b98ff-fd8c-4cd2-bab6-d2045451a5a1","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":172,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"90da9633-eb12-429b-92b4-1d1cb4884221","block_type":"box","text":"an issuer’s self-liquidity.","page_number":172,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"51be3c23-6d4f-4d50-8ba7-918a98b72a88","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":172,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"aa2373a1-aa67-4948-ad3a-0f4dbf124b3d","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":172,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"0b1367ec-b95e-4bf5-8119-81f1ab216052","block_type":"box","text":"MIG Ratings","page_number":172,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"534f2abd-f675-4908-a94c-b1f64dd0e7fb","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":172,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"dbfae3e7-2f0d-4b34-9584-35a27a560f99","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":172,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"ffcfa7ff-4d98-4b95-a751-8fa226fd625d","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":172,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"baa60645-7292-4970-b1cd-9143ad5a5482","block_type":"box","text":"MIG Scale","page_number":172,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"6b5b9198-7edc-4e77-a979-32fe56f8005d","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":172,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"66569088-f046-4aa2-b16c-c4921c1f5d09","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":172,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"8a89035c-88a4-4aa0-b92f-dd8db25611c1","block_type":"box","text":"refinancing.","page_number":172,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"a4c276a9-cfc1-45fa-bc49-749f86234a6f","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":172,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"cf988a20-8b14-4cc7-92d9-0512a0427035","block_type":"box","text":"large as in the preceding group.","page_number":172,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"af35bc48-4117-4cd9-ba40-744e568e329a","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":172,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"23d14cbe-2183-445d-8c59-399b81f2f0c4","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":172,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"fda2230b-cb33-40d3-9625-c45f8d4a3b16","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":172,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"ba0cbb00-235d-4fa7-8548-705b35512507","block_type":"box","text":"lack sufficient margins of protection.","page_number":172,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"17e4c8d0-70ed-431d-9e67-f30476d9be6f","block_type":"box","text":"VMIG Ratings","page_number":172,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"75a89b34-7fab-4d0b-a10b-a291aab7171e","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":172,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"5d38907e-ab16-49c4-ac5e-3e6f7105c5d9","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":172,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"2aef8347-61e4-49a9-9bda-bef530820966","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":172,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"07091c96-9056-4692-a2d1-2f898cef9bdf","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":172,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"370d996a-1cc3-40ad-8718-34af7e0e78e5","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":172,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"530815fd-fcb1-4fd2-900d-2a10ed421e3c","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":172,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"448cb58e-a322-463d-97c2-189b37bb96fe","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":172,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"b989289c-79d8-4d92-b3bd-377d5a988d48","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":172,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"84de76d0-09f3-45d0-bbab-3b25377d5225","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":172,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"c815c4d5-cbb4-48c6-a8d3-04cf1c4339ca","block_type":"box","text":"grade.","page_number":172,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"7b3c3868-0682-470a-be34-855d0e2d96ec","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":172,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"c71a2b0f-6987-49b2-9883-66af4d076e83","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":172,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"e040a2ec-fdc1-40aa-9d07-fa2536457a3b","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":172,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"aa521286-58c3-431e-a041-90c7bc7039b8","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":172,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"d4e61df3-e7c9-41c4-a88f-32ae6faef5fe","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":172,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"fbe53ff2-79e0-468f-b491-12b8f67a4f4e","block_type":"box","text":"liquidity of the corporate obligor.","page_number":172,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"6cac7c64-e270-47b4-91e8-a7cb6539fbec","block_type":"box","text":"VMIG Scale","page_number":172,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"a5f35ce5-681e-4c7d-8c2f-3c58e6ffab21","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":172,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"317d025d-1be6-47e7-ad33-b4866506b0b3","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":172,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"36a78d3e-f9ab-4c99-b736-41d1d6b7480f","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":172,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"c3027ed0-258f-414b-b82c-f7f89d8ed3f3","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":172,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"4564c324-1bb5-4615-a54a-00b355102f50","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":172,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"64f58d07-f7d8-41a5-9be2-b276d008058f","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":172,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"d0ffd7ca-b559-4d09-9fa8-4b4301c08504","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":172,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"554af3c0-407f-4e37-a402-f11c52dc5aa2","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":172,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"621d97e3-8805-4eb8-b658-58206436f97d","block_type":"box","text":"may lack the structural or legal protections.","page_number":172,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"5f981cd5-249a-439d-9861-4c410a8ee9a5","block_type":"box","text":"A-3","page_number":172,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"dfa08e10-e779-4c45-a269-1f8740e77d26","block_type":"box","text":"NM0926U-5975843-172/228","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"930d8064-1c00-4e0a-a685-0f6c27086935","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":173,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"1e219011-8f25-4ec5-adc5-e73c05f81b0a","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":173,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"94c39199-8009-47ed-b4c3-a82f739e4799","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":173,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"5f65cc98-2672-4f63-8228-f62e70854e92","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":173,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"3c79cdec-e47f-48e7-887d-d190c6e47531","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":173,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"b0c7e878-4fec-4472-b8b4-35a4f90eeab4","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":173,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"05ee8eeb-0286-4542-badf-f1555ea241af","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":173,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"1bcb30ee-d4e1-4d75-80a3-13c47518286a","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":173,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"63efcc1f-e2ae-4beb-9f92-e8ee26164087","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":173,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"eb5943a8-64f9-4979-8752-40897fe1b164","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":173,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"1a094534-ae15-4288-b42b-bf01bb24623d","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":173,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"4f001fb1-0267-44c4-ac15-60edc963f8ff","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":173,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"a804ee29-0cec-4b1a-a239-3a1cd114df15","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":173,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"d23f82fc-246e-4259-a057-eb7bcbc7e033","block_type":"box","text":"from these guidelines based on market practices.","page_number":173,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"00c49c4d-9e1d-4fd5-a88f-6380c64b9ae1","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":173,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"2353859f-c69f-4c20-82ff-18bb9c9c0d9e","block_type":"box","text":"•","page_number":173,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"ece21273-1a97-4a94-8257-5111f5d598be","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":173,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"17ddc760-bfd0-471d-bf8b-97b03d4ddb94","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":173,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"0175536e-4654-4e3a-a990-413a539a7c85","block_type":"box","text":"•","page_number":173,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"1dd3e1c4-0f39-4cd8-9872-fd5646294622","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":173,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"276c5331-0c83-4515-86df-fba54be770fc","block_type":"box","text":"•","page_number":173,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"d913d454-982c-4e36-897d-14212d91f03a","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":173,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"7dc32f3e-4c69-438b-b155-49e814aeed13","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":173,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"1dd0e1ad-9799-45c2-ae7d-7168b540e605","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":173,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"e37fafcd-f4cd-474d-bab0-a35c9946b098","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":173,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"224b7eef-9c1f-47eb-89dd-0dd78532e0d0","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":173,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"dd103876-b685-4499-8b7f-863e9bafb70f","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":173,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"143d4889-b9db-424a-98ad-3cc197a52ce3","block_type":"box","text":"obligations.)","page_number":173,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"e965ed79-7ecc-475e-a9a1-68e197968402","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":173,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"fb95414c-157d-43e7-8980-3fefb8532e40","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":173,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"5083d155-b842-4e27-8db3-d1c08f7fda0d","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":173,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"87116adf-ae55-4a0a-9ce3-fa7859da21cb","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":173,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"0e12e3e1-118b-4a21-9cfd-418c6adbfd10","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":173,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"072376ea-3117-4b7e-8cef-ae96cd67ad5e","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":173,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"bfa636d7-3d03-4666-9c6a-73e7d51fbe39","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":173,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"d9b9c3cb-1802-47d1-834f-49b559a1574c","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":173,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"a109b130-32cc-4f48-b776-33ebc2884a87","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":173,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"f0a1c830-9182-4cba-9400-ad6ad759910a","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":173,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"aabd0a27-a1f2-4f7b-be21-2e54260a076f","block_type":"box","text":"financial commitments on the obligation.","page_number":173,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"5587003c-ba7d-415c-ba1a-bfbc3dc1d7c9","block_type":"box","text":"BB,","page_number":173,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"f73eb063-9dff-4639-9f84-65fef0399575","block_type":"box","text":"B,","page_number":173,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"420ecd3f-5648-48f6-87d1-e8834232dba4","block_type":"box","text":"CCC,","page_number":173,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"20d4181d-d449-4356-b4f2-db88990988a9","block_type":"box","text":"CC,","page_number":173,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"e90abf8a-b5c9-4e6e-a653-1fd61edd6eab","block_type":"box","text":"and C","page_number":173,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"01f4aea8-e044-4104-ace7-7ce9af77c921","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":173,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"49720ba6-08be-4648-90d3-0197875f615d","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":173,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"78323568-b2df-4f7f-b503-7627a9f67a4c","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":173,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"a05f4114-dc7e-4ca9-8ec3-9c86313fa7eb","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":173,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"00eed499-9721-49be-8d9e-fef07022438f","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":173,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"96a7970c-b2af-446a-b49b-0a0cf202f47d","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":173,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"05d208cb-d5a1-4281-afe4-9276f02cf67b","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":173,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"da38c8c0-0264-49c4-bebc-2526e14bdd4c","block_type":"box","text":"on the obligation.","page_number":173,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"90623f07-2d67-4e06-8883-b619f9e3abb4","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":173,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"df24f0b7-0f88-4e28-8a20-77f16b8a0588","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":173,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"e2b00318-ffcc-481e-8fed-2407c06693a3","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":173,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"a2c1fe1b-9997-451b-a0cd-d7a9237aac5b","block_type":"box","text":"financial commitments on the obligation.","page_number":173,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"24b49f0f-eb9f-49ac-ad4b-13b10c64e13e","block_type":"box","text":"A-4","page_number":173,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"335c5f67-3a60-4451-8d4e-95b500b60d85","block_type":"box","text":"NM0926U-5975843-173/228","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f0a32410-c16b-4922-8001-6a993118bfe6","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":174,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"32ce6514-0281-4f0f-ad47-a3b7be52cf2a","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":174,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"8fe7525d-a811-49b6-a667-8e1f61387263","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":174,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"0a1da686-cd76-4330-80c2-614c78e2e7ee","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":174,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"63f82049-c0c6-4eaf-ac57-f4d16e41d028","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":174,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"4651e033-f1e7-4c55-9e79-bb2a4b9b9815","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":174,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"04a7b3f5-d8a8-40f7-bad4-e0988a3af07a","block_type":"box","text":"anticipated time to default.","page_number":174,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"c2ac3e64-c45a-4285-9eb2-fbc31714baee","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":174,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"be4a4fdc-18c9-45e9-a0ce-60d6bbda184b","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":174,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"9137cb76-dd33-4d7f-a203-469d451e5764","block_type":"box","text":"higher.","page_number":174,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"64b8f757-6cd8-4fd1-b730-a788015ab0a5","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":174,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"88f3e0e1-6d07-47ac-94c0-556ce025ce00","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":174,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"f64afbd0-0522-4e37-aeca-b5331755010d","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":174,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"148d64b0-34f9-49b2-b12a-b78dfe1e0d69","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":174,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"4756ea3a-59d4-4c72-978e-32a8c18ed7c6","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":174,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"adde31c0-b0bd-471a-9d3d-e5983aac5a09","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":174,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"ea08193f-cddb-4c2d-bc77-b5d897c1472d","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":174,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"307d9d71-5b48-4df9-a32c-9c6d04838cce","block_type":"box","text":"restructuring.","page_number":174,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"b82c09f0-7a21-4af4-9de0-4f7de7a9da5b","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":174,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"0124bba9-5ccb-418d-8b75-7e8cb24c2dc8","block_type":"box","text":"standing within the rating categories.","page_number":174,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"f02b68c4-7502-4f2f-ab9b-0aebd56b2aee","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":174,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"f7831e58-1f2a-4696-b211-8eddc2a1f227","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":174,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"6118c202-ca4e-484d-ba49-f42508f73659","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":174,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"d9a1021f-ebd9-45e2-b772-3b8c36297e79","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":174,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"dab6e6b9-a32d-42fd-8333-b143266b1cd0","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":174,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"5bf9ee15-3d83-4643-ad3e-14c74ad997a5","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":174,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"a34b9c7d-999c-4078-bd55-a365c3144d51","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":174,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"28105c86-7d00-418c-8a8c-c84ac876c7b1","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":174,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"76fb773d-f7bf-4716-9d6d-5ca15fc3dd74","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":174,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"fbf9358b-91f4-4a0f-9ba2-8501ca01063f","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":174,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"53be7c22-e651-4530-9ddc-e36436d839d5","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":174,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"400b545b-abfe-48c3-9d31-0e0014ac263a","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":174,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"1630970f-9945-4061-bc55-1a8002e75778","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":174,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"5bb2f3c3-7204-4c87-8d68-ef8d40f958ff","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":174,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"d7745eaf-c656-4577-a9a0-06763c949480","block_type":"box","text":"financial commitments.","page_number":174,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"73abbaa3-8c84-422d-ba2c-d4939d5f1b01","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":174,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"6f1aa206-e21d-4802-8e39-a3ccf4057fe0","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":174,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"7c025f95-26d2-473b-814a-b1c9da81e6a0","block_type":"box","text":"commitments on the obligation.","page_number":174,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"c1de39eb-a932-4b41-b039-1a08416b84b2","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":174,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"a70d144c-79ce-4a5d-bfd4-725b86fb1ec2","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":174,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"cfadd87b-206d-47a1-9df5-4edc4521319c","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":174,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"cb59311e-5426-48ed-9e58-6e97c8d404a3","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":174,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"df8cefb7-0e9c-4271-92fd-3a340e960169","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":174,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"f30de237-f30b-4784-b3fb-c1b7bedba1e3","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":174,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"6a9eec21-2f31-421b-8839-a539af9ce923","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":174,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"989fe6ed-66b3-438d-9203-4cf0ac2a43ce","block_type":"box","text":"debt restructuring.","page_number":174,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"a5a6822b-7cce-4be8-af5b-42f46df2fe7d","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":174,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"1af25941-3795-4d3f-932f-4d0cacc8116f","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":174,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"197d5fa9-8476-41bb-b2b7-cd418e639c83","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":174,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"a835b41e-e577-4c61-8d1c-8c11b0f83b5e","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":174,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"def66cb3-7542-4524-a958-1599829c353e","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":174,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"4d61bee1-97e9-4125-92c1-36320aba5db1","block_type":"box","text":"A-5","page_number":174,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"4854ad0b-8c75-429b-a829-b3ed19ed010d","block_type":"box","text":"NM0926U-5975843-174/228","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"09bdbfc0-b572-4c18-8746-a32118b73517","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"7ca20bb3-df2e-493b-b3ee-e4c8c2cebaa0","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":175,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"f649f874-688a-45bc-ac38-47ff39d4f8a3","block_type":"box","text":"as a note; and","page_number":175,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"ee37f55c-830e-4c3b-be79-8fcff2aa51e1","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"d68e4e6e-09f2-49c0-9fab-28518d33a0c4","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":175,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"ecc81949-83f4-4200-a975-3beebb7253e8","block_type":"box","text":"treated as a note.","page_number":175,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"aa9963bc-e7fa-41c8-b457-25edf0cbe04f","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":175,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"78b047c6-38e5-464b-9b78-3cc6233e2205","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":175,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"6a1bc9b5-55e1-4a2b-bcaf-eb75bf74c95a","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":175,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"9676506f-a835-4d17-8792-24fb822632ad","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":175,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"d5c292a0-8156-4ae0-8cf4-ef50afbdf892","block_type":"box","text":"economic changes over the term of the notes.","page_number":175,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"edefbdd5-65dc-4d7f-ae66-50d141277362","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":175,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"f229e164-3b9c-448e-89f7-3fd3deee345a","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":175,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"cf2d6e33-39d8-4c09-bb4a-3732535f2fb3","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":175,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"a85c6355-af5f-4268-84c4-8a3545dfee24","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":175,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"7d145fbe-c57e-4180-bb15-b10d5ef446ca","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":175,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"9d912c4f-f8d8-43bc-bf45-5eff035f3727","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":175,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"dca7fb6b-50d4-41eb-8fb3-3c5c76b610c8","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":175,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"e7104f5b-52fb-4fde-82f9-9de2ade55dc3","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":175,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"89821d71-de97-4427-85bf-5a0775bc40cc","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":175,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"93255c98-a7e0-4f12-b892-52a392016243","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":175,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"7017c5dd-8a81-4904-9223-09f51f5e7cfd","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":175,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"d9dc4733-008a-4d16-9091-868c813deea6","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":175,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"4607a3c8-3820-4fba-acb6-252855bdf8d7","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":175,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"bc339cc1-f733-4d32-bbc7-f01bbb2b0d95","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":175,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"effb9bbc-39b2-4a3f-a216-9a2690b7b279","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":175,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"96b23398-1c22-44c5-a90f-fd59fc54b532","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":175,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"c2595d7b-e388-42f5-836e-c67a3dc27743","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":175,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"995abdbe-a385-464f-b091-28b941a16906","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":175,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"34b541a9-94f7-4e64-843d-b8a7d1aea773","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":175,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"7e911509-b987-446a-a0f7-776600d88c1b","block_type":"box","text":"receivables or other financial assets.","page_number":175,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"9ab8444a-c933-40fa-a377-72d5a8eacdaa","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":175,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"012ebbcf-68cd-44be-acc8-73556ecf8150","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":175,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"a1b87146-5ea5-4e0f-b421-0db597460bf3","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":175,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"8cab69ba-f808-4029-9fa7-008aee1b52a7","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":175,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"3b6c5e73-ebeb-4fa4-91cd-a2329ad22153","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":175,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"934d4c1d-6219-4ad6-9149-c5183efab962","block_type":"box","text":"occurred.","page_number":175,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"8c6e6cde-128b-475b-ad95-65f27a9400f0","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":175,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"5889c8c4-0726-4f9b-ab00-43d2118f5780","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":175,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"c946f5d5-63ee-4990-9c7c-297724e9c44c","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":175,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"3eb96061-9ee8-4a1e-a5a4-4dd887b0b12f","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":175,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"890bb65e-9175-4049-9ab2-88fe9b0bea43","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":175,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"edf56072-297b-4740-b589-dea8406b6b7a","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":175,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"6eee7667-11a2-430f-88e7-c0d04bd802dd","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":175,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"0a571fae-5973-435d-8d11-d90c7b9c0dd6","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":175,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"9e5070ab-b4ab-4f98-84a5-8612624a5ebd","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":175,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"ba0ac056-5ff9-4580-b8d8-3dc95117bd0e","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":175,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"8e0b7ada-893c-44d2-8ceb-38a0ff8f6db9","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":175,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"77429fea-44d7-4df8-b073-784c796de923","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":175,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"df20b133-a2c3-45ac-9352-82f2fd58d6c0","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":175,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"ae7ff61d-5199-40df-8dfb-2ad96d4660df","block_type":"box","text":"i.e.","page_number":175,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"7579144f-8dbd-4f2d-9234-d8f715995dc5","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":175,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"cff1bddc-221e-4a01-b958-cd3f83843097","block_type":"box","text":"the obligation’s documentation).","page_number":175,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"59d64209-f6b4-4e2a-83ea-6094b422fd9a","block_type":"box","text":"A-6","page_number":175,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"59354e8a-7ff7-4588-9a95-71300756e23b","block_type":"box","text":"NM0926U-5975843-175/228","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"43548b49-2cd4-45de-b587-f452eb24fe7b","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":176,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"9706c402-9397-4f7c-aa14-4d34adb5d09d","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":176,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"5a053d88-44a2-4472-acff-021831245df3","block_type":"box","text":"agents in the form of a rating letter.","page_number":176,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"134aae5a-b361-463c-86ca-04039810cd68","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":176,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"f967ad04-e5a4-41f9-b48f-726b7a44882c","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":176,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"d2ce6f9a-c43a-4b62-9fd4-ac690239280f","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":176,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"fb199eb4-e6c9-48b4-84db-e6e174f475b1","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":176,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"c18d69db-894c-4200-a094-cc77d3d0906d","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":176,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"8f40e06d-c128-40f1-a8b1-176aef32c8a0","block_type":"box","text":"e.g.","page_number":176,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"87cd66d4-4e8f-4c37-8928-1252e18680fb","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":176,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"26389602-0e2d-467f-b72d-f5befa89ecfe","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":176,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"db42aedc-39ed-487f-a19a-5344aef08531","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":176,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"cfcfbf44-360e-43b2-bbcb-ba6c3f0284fb","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":176,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"d2728dce-b63f-456a-9db2-7c232a4b2d40","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":176,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"da3e56f2-bc64-494b-9bfe-ff6a5b7579cc","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":176,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"60e83eb3-44d6-4b59-86ca-3db19b8be420","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":176,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"1461345a-d3e2-4a82-9409-58c3889f9a60","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":176,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"20579cb3-43d3-42fd-b77d-dc0d144f5a63","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":176,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"47b6d2f2-8aab-4505-b439-8eb83835ee8c","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":176,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"5d7a669e-aedd-4782-a076-ea19ba12c6c0","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":176,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"fe5ab8cc-1348-4319-a5db-642cf2fbd0df","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":176,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"2f8ed816-d09a-41bc-9f9e-4825caca1d91","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":176,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"3b19a37a-8125-4cad-994b-1da289f1d449","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":176,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"9c4f4f3d-71ce-4a2a-bace-dad9340631df","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":176,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"5a4327df-6a7a-476e-bf8d-1e3373dd797a","block_type":"box","text":"Ratings.","page_number":176,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"c2c520d1-6a83-4113-8c05-e049feec113b","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":176,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"ac9bc56d-62ad-4b3e-9fba-6266c102b1f3","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":176,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"8ce0e399-c293-4054-a0fb-b9b7e18ff8e1","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":176,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"86b2a23e-9595-42a6-81a3-2effa069cac3","block_type":"box","text":"obligation ratings.","page_number":176,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"c23c3caa-b7e4-4b28-a80f-da49ea330d23","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":176,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"c3e17665-96bb-41a9-a14b-30fded9d9f40","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":176,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"70478511-0991-41ed-9535-c1aa0980dbfc","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":176,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"b239409b-ec0c-4268-9fb9-38141358daf8","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":176,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"184ebbae-5b44-45f3-8736-b07d9676234a","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":176,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"06afa0bc-187b-4f0d-970b-ce252254f16a","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":176,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"25de718f-f3a6-420f-a18b-4c4af62aff11","block_type":"box","text":"to foreseeable events.","page_number":176,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"3110c722-11a7-40de-abe0-0ac892b2e8c5","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":176,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"4cac5507-3d85-454b-a0fc-77d46ab5046c","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":176,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"526b3ac7-3941-4d5f-b43f-91254315d183","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":176,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"9c474147-0a92-42f6-acb9-e95c91fdfe9c","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":176,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"820de2ce-1fbb-41ac-935d-129a59e4dad1","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":176,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"89e37068-6f31-476e-beb6-f39cc14fb229","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":176,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"40979054-620b-43e2-b725-8ff1c87a244b","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":176,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"c22431d0-833b-4f89-af79-b05b2de99c74","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":176,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"a0220fc0-7422-4d59-a3bb-1759d25c1589","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":176,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"28c5808d-f0e8-42fd-ad62-225190515684","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":176,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"cad6f43b-601c-4718-949a-6b6a91d64bed","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":176,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"f1c9d535-b960-45aa-ad36-72e6140768b7","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":176,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"98337ebb-31fb-4ef7-b759-42437c0169fe","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":176,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"9a8bf8a0-ab77-4be0-898f-0d65151aeeaf","block_type":"box","text":"possibility.","page_number":176,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"ddecc6e8-2e6d-4088-950b-daa266ab9eb8","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":176,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"937ab76a-649b-423e-b8b7-0f1aadd0b737","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":176,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"8c6f3d66-d963-4a78-9798-fb39d3af4e14","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":176,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"ed511e66-cf1b-4b47-bbdc-a7d6a136f734","block_type":"box","text":"A-7","page_number":176,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"9232aca1-5e53-4353-8558-cd2bb0fa4b12","block_type":"box","text":"NM0926U-5975843-176/228","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"40de5276-56cc-420c-8e2a-154bbdc7ac01","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":177,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"76f30720-5101-466c-b75c-07e50d38321e","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":177,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"72cc344d-c018-4992-b265-5ccf591e2a02","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":177,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"a7de0944-aa63-4eac-ae2a-29fd71637ce9","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":177,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"5efb54b2-7d72-4330-9e3b-719f4c40bddc","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":177,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"72d075ba-fc7a-42c4-a722-9924c175d18b","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":177,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"8b68a4fc-f10e-4442-9c00-6df032eba0b0","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":177,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"4b501ea5-46ad-4d9d-bc93-aa366f305a27","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":177,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"ad3ed8d8-cca0-4477-932d-e76452615c99","block_type":"box","text":"relative status within major rating categories.","page_number":177,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"af865ffe-a9e8-48d8-b760-dac066b2f8d1","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":177,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"7ef0cbdd-279c-4c7c-9376-ade018217065","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":177,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"3a3a985d-99fa-4df4-bf90-49e54f43f218","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":177,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"918df1cd-7f8e-4b96-bd25-b54a672962eb","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":177,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"dd81abc4-d267-432f-a389-1ccd02683f9b","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":177,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"2cc14234-82a6-43bc-af7d-bff39a863e84","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":177,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"f02a2723-6bfc-4ffe-9271-93e5dbe58314","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":177,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"b791eecf-58da-49e5-8714-f096035ad030","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":177,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"cc5c5826-f455-4b28-968f-28fc8e4fa705","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":177,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"370cc751-4810-42ba-9c19-4e8d720c0676","block_type":"box","text":"finance markets.","page_number":177,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"9ac6cb0c-150f-47d0-aad7-587131883743","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":177,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"056f99ea-5728-4ae9-94f0-223468c36c2f","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":177,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"ad297cb8-dea7-4511-a0e2-1db88a887193","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":177,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"a198ad8e-4ff9-4f00-a10f-a0f7c8d52059","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":177,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"b24492e4-d35f-4662-a371-39b4bd534535","block_type":"box","text":"commitments.","page_number":177,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"6799f14b-9e44-4cd0-8f2f-ee14f37cd518","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":177,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"0edec81b-08a6-4a87-8c9f-dc3cbe61e85a","block_type":"box","text":"adequate.","page_number":177,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"7f7b3ff9-004d-4e48-ab19-bc372ceb8966","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":177,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"8ffe6344-8c1b-42f3-b8b2-7571f111a094","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":177,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"6d13fea8-819f-44a3-90c5-64906b937cde","block_type":"box","text":"economic conditions.","page_number":177,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"c77f2f16-94f9-4173-a9be-ef2176bf1cb1","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":177,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"81cdebe5-b5e3-4acc-be58-d805a1d3f641","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":177,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"699afe48-81e3-48bb-ab8e-af12f94a613a","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":177,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"d9e6847f-8a7f-42ef-b0de-8ed155da5491","block_type":"box","text":"ratings only.","page_number":177,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"e6ff7940-e23c-4568-b90f-6546ae5d3008","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":177,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"0cdbb76c-eb0d-4d41-ad53-f1f16c18ddb0","block_type":"box","text":"obligation.","page_number":177,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"be7fb640-6a1b-4527-8d8b-de26ee3d0993","block_type":"box","text":"A-8","page_number":177,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"bf61ca5f-efc3-4e0b-a327-68001139bcd7","block_type":"box","text":"NM0926U-5975843-177/228","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cc4f0d96-4b49-4778-b1de-c90ef6d9bc30","block_type":"box","text":"APPENDIX B","page_number":178,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"c9bbe926-0306-43c4-a15f-8937c1a640c1","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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The guidance informs the voting recommendations BAIS","page_number":182,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"b9b0a3eb-3a2f-4340-aabe-1a04f0038a8f","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":182,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"70a8b68e-a11e-4a9b-819c-4301278af5a9","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":182,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"bf2b1eec-79bc-4bc2-a2f4-08a5465b3611","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":182,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"e4d8c390-91ec-4e04-9bf3-b480a9690d6d","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":182,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"11fd218f-de9a-45e0-8264-7915a583b577","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":182,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"349d67f2-3200-407c-91f7-dea8d78771f9","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":182,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"94259811-372b-468b-a14c-135db76e35ee","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":182,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"18a4044b-cd80-4eaf-a969-4eb966b80481","block_type":"box","text":"1","page_number":182,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"3f609255-7703-4fd0-a59d-7ab04407db32","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":182,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"3ddd02a2-2a18-4687-ac78-4c0992b0e7d8","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":182,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"63f70c04-70a0-4118-ac95-bd3782e9ee79","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":182,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"abca01c2-3450-4573-979a-c441e9b41bb0","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":182,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"c4cff899-1a1f-45af-85b3-f13781aa4f43","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":182,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"6d1bc25c-5ff1-4935-8ce1-dcb6548eca0c","block_type":"box","text":"2","page_number":182,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"4b955284-2526-4b84-80b5-e0acb50d9684","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":182,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"6926297a-dd8c-4c7d-8fa0-ffa7d6419ab1","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":182,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"558e5cff-404e-44af-bed3-61147d2e8df7","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":182,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"1448ab4c-8cbe-42a7-a1cc-fa9538ececf8","block_type":"box","text":"policies.","page_number":182,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"de8c3e43-614c-4fbe-a335-a7a8c1bb9329","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":182,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5cdfc7fa-c729-4156-b218-986c3bd22209","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":182,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9ce9d38d-ee2b-4d50-8829-b50d7e660c92","block_type":"box","text":"NM0926U-5975843-182/228","page_number":182,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ad1d7ed4-d76d-4a81-b4da-3ce998b0a5e8","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":183,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"1958cd3f-3a99-4a43-9141-247668281c4c","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":183,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"7acf321d-1dd0-45ad-be1e-e1fe2ba13dec","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":183,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"7b3e4847-4839-4a89-8481-2ba0bdc89a6d","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":183,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"4d3194d1-1127-4a73-9202-27ead36247bd","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":183,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"0ae2de2c-6d0a-41cb-9ebb-00da76d3cad9","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":183,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"4601c324-e6a0-44ac-a868-712fe0eaa14e","block_type":"box","text":"this work with research, data and analytics.","page_number":183,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"21b50eca-2732-4d92-b851-7325806dd431","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":183,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"a6931a2c-2bb1-4bfd-8848-a8f347f356c0","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":183,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"8c0d59a2-dd7b-4e71-9d6e-d17658166b83","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":183,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"ef945fc6-4abe-4026-95c3-e8b926e3d912","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":183,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"2dbb3350-8366-4507-afac-c12496cd3eb6","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":183,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"9e3fe01a-72de-4e37-93cb-20c6cb51d6bb","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":183,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"0f7126df-1a4e-487a-9d92-fea8b4bc4b09","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":183,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"6f8bda5d-1683-4454-85db-a66f6e297101","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":183,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"e65271f2-e874-4529-b2cb-bb1927618e5d","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":183,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"a3575437-8c0f-4a7f-84ae-9d8814ea7e5e","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":183,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"366e794d-50ef-4b7b-a06d-2efc4bc066b7","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":183,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"e20e836a-e298-4f03-bfc0-300169ab2f09","block_type":"box","text":"shareholder meetings.","page_number":183,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"65d9a1ea-60d0-473a-b9d3-550e9931773a","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":183,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"3b7585ba-7b3b-4c77-b600-6fe04e8d478c","block_type":"box","text":"investing.","page_number":183,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"359f880a-8f09-435b-bdc8-882aef332af8","block_type":"box","text":"3","page_number":183,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"82b302ef-0fde-43a9-96dc-dd04697447a3","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":183,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"e2f34ac1-2c26-4406-8a74-44aa7ff61dda","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":183,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"ea6311d5-8544-4d4b-8ce2-73b248673229","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":183,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"16bde4f2-5c69-4bc6-b77f-ba7053446319","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":183,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"a8deaa53-888c-4114-8ba4-bc55fa7fae00","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":183,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"560955a1-2990-40be-9bd4-1dbb60bb19e4","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":183,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"2ea15dd0-5b52-4f77-8d44-4a61272a825f","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":183,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"ce13ddb2-e483-4403-9876-61b1ded1d806","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":183,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"e2d9afe2-7df3-43a9-a137-e5722204d821","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":183,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"bf26d533-8794-424b-b6cd-9b6525cac7c3","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":183,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"ce1c44a2-fae3-4268-a4eb-d01d79c2f869","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":183,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"b1d514c1-ca39-489a-aaa9-bdc6e9f49bfb","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":183,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"09cde009-6931-4367-b79b-447740f6d5d3","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":183,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"659a3147-c34c-4f56-92af-59432a163ff2","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":183,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"94a5e6a4-f498-48ce-807a-4f06776515b7","block_type":"box","text":"management teams and board directors","page_number":183,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"ead3d087-85b5-4022-91e1-48d49781d936","block_type":"box","text":"4","page_number":183,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"e6db889d-fde7-4866-a6a3-3f09b33dd469","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":183,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"afaffa8e-7769-4431-adf9-7a14c15071b4","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":183,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"3e8065f5-edb0-4d52-827d-e4d1b6c3f31e","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":183,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"07285bbd-2d96-4577-82f7-a0fbd28df867","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":183,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"32456942-2089-4723-80ac-654a3f029a38","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":183,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"ea17908d-ecb8-40c3-81e7-c0ab59e04282","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":183,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"e79e1cd8-deb6-401d-a10d-9a3c616ac4ac","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":183,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"f6992c06-563e-4a6d-8416-5d339e48fabf","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":183,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"aad1c112-fb5e-47c8-9ab5-169b368a13c6","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":183,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"432a7d9c-a25d-4201-add5-b17b4cf1fa4c","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":183,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"008e4403-2698-4ac7-95d2-c2f28a1d99b5","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":183,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"1e85f712-e140-4077-8ef6-b6a12a6518f4","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":183,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"4908839e-4d72-46ae-9080-f3553cad6855","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":183,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"bb92e81e-da87-46e2-93bd-a488ff46df78","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":183,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"1e0f6930-62bc-4f35-9b10-be0364324d5a","block_type":"box","text":"3","page_number":183,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"373998c5-4739-4630-abd7-3161edb495d6","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":183,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"8e66d099-ff21-4ed9-98b1-49eab84756cc","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":183,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"411a06db-f63d-4e6d-981f-1ad8bebd6112","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":183,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"7c478275-f908-4a2f-b791-04d2999751e3","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":183,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"e8896a6e-6ed4-43fd-927a-7f1df4ffe1d2","block_type":"box","text":"4","page_number":183,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"31e658dd-79c2-481f-9dec-417dfd134c4a","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":183,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"c9e679ed-c87f-455d-a83f-a9fc42162f68","block_type":"box","text":"boards and their members, where relevant.","page_number":183,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"a9c350ff-01a5-4f6d-b912-a2f01d8a8410","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":183,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"28327eb6-5459-4a7d-b58a-5748a91bece1","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":183,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"3c6d1da1-49fa-4bd5-b4ed-866ae0b54444","block_type":"box","text":"NM0926U-5975843-183/228","page_number":183,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"25394d27-13b3-4da6-b3f2-7244e6b92b52","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":184,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"e4357887-e7ad-4af2-afad-af12b30f3e6e","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":184,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"b18cb898-8042-411b-86b0-0865041c0dd2","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":184,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"7258ded9-665f-4be8-afef-1b3aa5cccc83","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":184,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"c045a39b-ee00-4a80-86ca-99e4219545ac","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":184,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"f01fe618-0b6b-4a8b-b1ec-3175f61e8623","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":184,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"de58a552-378f-4453-a21a-220e049d1da6","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":184,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"40003653-0863-437b-99bc-9727485261b2","block_type":"box","text":"5","page_number":184,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"cf66af2b-ceb2-4853-b8d4-d549c19f0310","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":184,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"c6d5722e-0ea7-41bb-b140-2741b660c528","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":184,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"4126319e-83a4-4d5f-b5fc-73f1b07d4bf1","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":184,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"69e761e0-19fd-49c2-a050-9254fb9fdce3","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":184,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"0ad6f0ec-c453-4107-aa19-2c15e56fa420","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":184,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"4278e212-432b-47c5-a570-16e04db7ab06","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":184,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"6714b462-c4e1-4745-a939-396cf5ac13a8","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":184,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"f529d456-a98f-4327-a4c1-eda1939dee89","block_type":"box","text":"5","page_number":184,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"b823ceff-6064-4d82-9796-f783579078b9","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":184,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"5da6a608-0c42-4ed3-b29e-52c1ded904ae","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":184,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"56dd887a-f768-43c8-b107-535d6e408670","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":184,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"f013ddf9-ebea-4fa3-bb45-bb1ab47cdc51","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":184,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cbace23d-2d53-4dd9-a9cf-bac8bdb1d0a1","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":184,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"8e3d6761-6a2b-4e9b-9795-1387ddd2706a","block_type":"box","text":"NM0926U-5975843-184/228","page_number":184,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9ff8a3fd-0d56-4c94-9eae-457876381220","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":185,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"cd046d83-40dd-4ca4-a069-02d87bbb3f4e","block_type":"box","text":"Roles and responsibilities","page_number":185,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"d881f722-3d27-46c8-875a-6c99fe4af173","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":185,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"45b5c279-c638-44c2-b7da-e77c8742498e","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":185,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"b7902f34-27b2-4317-8550-6d0b2971e454","block_type":"box","text":"6","page_number":185,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"3ab326e3-24bd-4dac-bbd0-67e66200fd1b","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":185,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"ff2586c3-af03-4554-825f-29ac9bbd3fed","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":185,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"b4d4bf8b-2bdb-47d7-86b1-045bee15f59b","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":185,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"077ed8da-b20a-4447-9356-e600c457186b","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":185,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"c7a3e936-8fd2-4318-9b6b-b07493a2e000","block_type":"box","text":"performance over time.","page_number":185,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"a7562f03-8588-4599-9762-6287c99086e2","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":185,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"eb3754d7-fc4b-4d71-ad4d-fba09e6b4343","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":185,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"54fdf235-dc2b-4787-bcd6-ac62198efb0a","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":185,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"21b2a9f4-49a2-4a0f-97b5-a707bd59aad4","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":185,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"e505af58-8758-4b36-a4f3-f4c2856c90b0","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":185,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"4451760e-d3c7-4ca6-8be0-82c7f5a87887","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":185,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"9a458529-d27c-42da-a000-e1af6df61623","block_type":"box","text":"Composition and effectiveness","page_number":185,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"1d49bdcc-047a-4bc2-a3d0-687feee235bf","block_type":"box","text":"Appointment process","page_number":185,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"f8f6fdab-05b7-4ce6-b0fe-758735dc1cdf","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":185,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"d781d631-0fff-4ab2-8d49-b1c3219f5d57","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":185,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"dbbf3ba5-bd6e-4c6b-b23a-0dedb038a7c4","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":185,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"4e95b6a1-436e-4963-9efc-37b8fe83f26c","block_type":"box","text":"e.g.","page_number":185,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"d0b8ad95-a01d-46c1-9520-7be5ec280277","block_type":"box","text":", sector, maturity, geographic","page_number":185,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"632f42a5-7c2f-404f-8aee-412c0d729084","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":185,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"d08d8e2e-d155-4ab9-9384-4ee5b48d7427","block_type":"box","text":"e.g.","page_number":185,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"e554e0fe-40f8-4b52-92e0-5c170d680310","block_type":"box","text":", financial expertise, industry track record). To","page_number":185,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"6bbf9f44-cd23-4711-a1c6-6ee95ce8b5fe","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":185,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"f7e573f8-1841-42f4-a570-432d156438fb","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":185,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"70046bd2-8579-4f39-bcd6-d0ef3a29ecfd","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":185,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"5ed085b5-d5fd-4aa9-8af2-dbf05b64d120","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":185,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"94b00c7a-ae31-4fea-bb3e-10487d1dde4e","block_type":"box","text":"and local market requirements.","page_number":185,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"a0c641d3-5ae3-4e8d-9fa7-434559e90206","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":185,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"0d55c8ac-fd5a-4b38-99ac-72ce41639058","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":185,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"98ebd21d-f10f-4e7a-b3ac-f3b91be6ccbd","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":185,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"6a7da1a3-1e6f-4f4f-9553-b952acb665b8","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":185,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"692ecc79-244f-4bf1-a2f7-228ef3579f0d","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":185,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"cbc8ad38-d59e-4106-a2b4-9e0bc2d84597","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":185,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"d9fb4e7d-5329-4f1f-96ce-6d9cde4200c6","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":185,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"e4427d5c-d6b1-48b4-bd3f-36155dd740cf","block_type":"box","text":"Independence","page_number":185,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"0cae8155-5807-4536-8938-539c0fb56946","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":185,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"b7f3fdcb-8d06-4f93-a4e8-b5076f9afc08","block_type":"box","text":"e.g.","page_number":185,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"bd7dc074-0ce3-4f94-af1c-3cd58b54a9ef","block_type":"box","text":", government or","page_number":185,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"1bd0a93c-23cf-41db-9b65-5fe4a11c0d7f","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":185,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"6ea851e6-0d82-42eb-85b0-b18a9464bff1","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":185,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"4071379c-0317-492a-b161-5dc86c8ec88f","block_type":"box","text":"conflicts of interest or undue influence.","page_number":185,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"40c22bb9-3acd-4046-80d6-0a3c5295cbaf","block_type":"box","text":"7","page_number":185,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"c7d14431-1d9d-46b8-87fe-4f19414e99c7","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":185,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"9f5f3e91-1f93-4dcd-8818-c5c7ae351d3e","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":185,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"92b56f59-16f9-436a-a407-555b4ad1d41f","block_type":"box","text":"independence should meet those local requirements.","page_number":185,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"18f7f2f7-4ce8-4ad9-923d-d7fa3f2b1b82","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":185,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"3807bfd9-3178-4ba0-9a81-63b73b1b0a65","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":185,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"dfabf3f1-bdd9-4df6-b50f-2aef4ee558af","block_type":"box","text":"composition if this is a perennial issue.","page_number":185,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"3398ee4d-d08f-4a16-89ea-f109759d129b","block_type":"box","text":"6","page_number":185,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"e732188c-a9bf-4499-ad56-afdb963cf72e","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":185,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"b1e514f8-90db-4251-bcae-8f0b672fef81","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":185,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"2d66d224-9290-4625-b39b-1e566969e6d3","block_type":"box","text":"7","page_number":185,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"4ceac40b-4228-4be3-bd22-bab078be14f6","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":185,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"cee4f5e6-d126-411c-93bf-e7c4cda3db29","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":185,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"0ce40c9d-384d-4288-93ad-fa43bfbe77ba","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":185,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"ebbbb9b8-907a-4193-82c8-82c1790721bf","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":185,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"826753cb-7364-4520-b5db-72d0f2081483","block_type":"box","text":"of the company and shareholders.","page_number":185,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"09792d55-7c8d-47bd-8f44-be4d726cd20d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":185,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"acc84456-d9c3-41ce-bea2-a802b032b526","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":185,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"6a43e066-6061-4418-a6c9-a82d0998849c","block_type":"box","text":"NM0926U-5975843-185/228","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f2101d1e-3a53-41d0-8216-bee51df45736","block_type":"box","text":"Independent board leadership","page_number":186,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"6c58177c-7cf9-4269-90c8-b41c7a942b3e","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":186,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"eaa7f5dd-27ea-454d-a7c2-08ffcbb27095","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":186,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"2a668da0-844b-405f-bf5e-715e14e7f358","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":186,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"d768eb8e-e9b5-4d61-936c-c0e28902fe46","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":186,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"fff322b1-052e-4b61-9bb5-9a4535701172","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":186,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"b7bdb72d-8c27-40f5-9c8e-9cfae0ad5d57","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":186,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"a2c2c843-b646-40ee-8a90-589fb6ce9d86","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":186,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"4e5018a0-07e6-4c14-b131-f53eabc55354","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":186,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"e5fcc471-88d9-4788-b34b-2263460381d8","block_type":"box","text":"how it serves the interests of shareholders.","page_number":186,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"2fbf546b-0412-4bbf-8da3-ae843a22c6b1","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":186,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"6a9ef55f-492c-4c4e-87cb-084d8cb7c515","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":186,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"bff16c34-3877-459d-8ca3-75a8a2bcf471","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":186,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"dd1ddf0e-ffed-4315-9b49-5215a0d5f8f5","block_type":"box","text":"Tenure and succession","page_number":186,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"b22e5ae7-a6bc-46b4-8736-6d9e75c73cb4","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":186,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"cb8e43bf-5ad7-4f0c-990e-cfb4a6a2eb00","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":186,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"2bf1a463-8ba2-4207-9ed6-9027a3711ea1","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":186,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"a489d5ba-25a7-44d2-9f0c-10b7c9ee5240","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":186,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"2701d15a-d23a-43f7-9bee-029f103572e0","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":186,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"58d413bd-b0a8-4f3b-b3a2-43c5025af363","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":186,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"39093909-8269-4baf-824a-812e383d1642","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":186,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"ae697bc8-02a0-42a0-a49a-2ef99cc938f6","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":186,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"4432026e-2020-4c98-b25d-94ad8933e46a","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":186,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"36b853f5-e256-45e1-b0e6-9c53a90cb375","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":186,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"88981fd0-8492-4146-b38f-cdf65f00c297","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":186,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"aee41291-fc26-46ea-b53b-40f6daef88e6","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":186,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"a87c7093-1a3e-4709-a8cf-9c9fc9afbc98","block_type":"box","text":"for their continued service is not evident.","page_number":186,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"b56da02a-3c4d-454c-ae6c-8566a8c806da","block_type":"box","text":"Capacity","page_number":186,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"c24cdf6a-c133-4d71-831d-fc376de87562","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":186,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"512aaef5-f094-4b6d-8f8b-1f64288b54ff","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":186,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"5921779f-77f4-45b9-9761-380cf3006f3d","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":186,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"3ea86660-977b-442e-9dcb-fce6584683dd","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":186,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"c89f65da-15d0-4f83-b56f-e2ffc226dea3","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":186,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"1242dae0-3dcb-4ceb-86e0-c8de06bec37b","block_type":"box","text":"determinations across markets.","page_number":186,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"636e1cb7-ff64-40e5-badf-8b9a00147a29","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":186,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"6be38daa-60f5-4075-871b-6aa6b2c625ce","block_type":"box","text":"their duties to the board and company.","page_number":186,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"8955b936-19d6-42e1-8bec-a4219523d070","block_type":"box","text":"Director elections","page_number":186,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"6beaddf2-7ec9-4789-aacd-4eedb5c513c5","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":186,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"197fb263-a50f-4c1e-b52a-ae30d1b4816a","block_type":"box","text":"structure","page_number":186,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"f74f07c9-651a-4e46-b35e-bdf77cb2e919","block_type":"box","text":"8","page_number":186,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"6a31a0dd-8772-4d54-b9df-79b1e9321465","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":186,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"9e99b536-f224-4870-bbc2-74ce46470503","block_type":"box","text":"basis of its business model (","page_number":186,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"99dd2387-5e87-4378-be8e-9f0e6a33129d","block_type":"box","text":"e.g.","page_number":186,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"9042b5b8-3eb4-411b-9506-9226f3cab3ae","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":186,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"7e6f2619-309b-4ec2-96db-82af276ba705","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":186,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"7af85e31-d015-4c5d-9365-51ec49ef486d","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":186,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"b92d2177-6672-4db0-ac70-c054df3617ad","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":186,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"e05cca6b-423e-4c92-a198-7a0bc66f0073","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":186,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"04547e11-7658-402d-a00c-6876920cb0f1","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":186,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"7dd8e1c6-9743-4d3b-bc69-cfd0a6d647d5","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":186,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"bc221431-6c2b-40a5-bdc0-77a03ae36b7c","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":186,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"d0dc5708-c6a3-4b83-ab48-30fddffaad44","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":186,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"464ad084-9a33-40b3-b839-2b5924e0cc09","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":186,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"d5528c6a-a76c-4748-b792-592a6468b441","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":186,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"5c89f5f2-7f43-4cd4-aec2-bd58cd1e1616","block_type":"box","text":"8","page_number":186,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"5f370bdb-2a41-4313-a44c-3a5204f84c5b","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":186,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"d7a53d3d-b430-4114-b8ad-d8c0e763b8e9","block_type":"box","text":"directors stands for election in any one year.","page_number":186,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"a37437d4-f129-4987-abca-68737521cd62","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7f3bd693-ffce-416a-8f11-91a6270744c3","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":186,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"16dcdfe8-e0de-4584-bb71-bbc99ec0c609","block_type":"box","text":"NM0926U-5975843-186/228","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b1cf7af6-dac1-4279-bf0f-3b8914205b8b","block_type":"box","text":"Committees","page_number":187,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"5f9cb305-3adc-4595-aa55-2330bb3c94d0","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":187,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"ee0890f3-0382-4948-8bf4-e7087c9f506b","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":187,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"680612ae-b46f-42c9-8147-ffd082047e06","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":187,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"391a2f0b-fe20-48c1-a6a0-8e89716c3e0a","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":187,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"0a1d7285-3a40-4f41-b365-3bf31cfafa81","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":187,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"ffbdc566-fc07-4e9c-83d4-2ec0dc98dc4d","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":187,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"4b0e0dbb-b82a-4256-a527-fb82f669da05","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":187,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"0dfa9cfd-1019-4ebf-a087-0cac6ab58378","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":187,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"b3963b0b-a2c9-4522-97fd-ba386eb81d97","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"86c67dae-a59c-45ef-b4ef-938e088bb38d","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":187,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"4735a448-70f5-4fb2-976c-7c016919a7af","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":187,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"62cb6f4e-6d66-46ba-a149-3b248f22d919","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":187,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"fc81dbf1-f8d3-49b2-9c99-5a36da24b8a3","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"048a491e-f709-41a0-afc6-5fae5e012d0d","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":187,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"78857dd6-3779-4b1a-bdae-d4267c0c0cde","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":187,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"d0d9eb28-6079-4af0-a3c9-c4f58a3cbbf0","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":187,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"49802aaa-83c7-4b89-b554-935bbf03ea4b","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":187,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"768d95ef-3595-4e49-8d19-2c16c4094ebe","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"123dec0f-43be-4728-b02d-5025edae1685","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":187,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"17dd2ea8-d9f8-481c-8392-1ff1f26d898e","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":187,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"0a350bdb-56af-4929-9bf0-72a9c9eefc78","block_type":"box","text":"firm-wide compensation policies.","page_number":187,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"61e93fc9-a64b-42da-bf49-5fb5ddd9ca69","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":187,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"e70d6185-609d-495b-8394-5cfd4629d2f8","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":187,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"f30b7793-cd17-4b4c-bd79-21c8d3166dfc","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":187,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"3667be8c-fa7f-4dfd-87bc-311ea2580819","block_type":"box","text":"Board and director evaluation","page_number":187,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"1c498186-a613-487d-80ee-cf9b8156c281","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":187,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"06755be6-8522-4a1f-bb3d-7993010cedd4","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":187,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"173157da-d01b-4102-a74f-d744204e9324","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":187,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"6d015ce5-156e-46ee-a996-77d658a32176","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":187,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"bf504bd5-c692-4230-a057-43210fd65efc","block_type":"box","text":"a result.","page_number":187,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"a4c4e2c5-557b-4b85-8d06-791b1e5522ba","block_type":"box","text":"Access to independent advice","page_number":187,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"ac8ff28e-7922-4846-bb7d-2c4b9f0be46a","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":187,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"7b0d0f23-95fa-4557-818d-52ade1d48cc7","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":187,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"964f0eaa-22ce-4e1b-b162-8c6974a0595d","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":187,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"85f37594-ecef-4412-8174-6f3596a2791c","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":187,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"5791c965-c551-46dd-ac8e-4ce6466cdf87","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":187,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"beca1992-50c8-4f3e-b880-42adbcb238d7","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":187,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"d1499afc-64f4-4d2a-99a6-6c4cb74dee6a","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":187,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"00fd45de-d7eb-409e-bb17-b7c442c0e7ea","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":187,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"024b1a1b-f3e0-4ec2-bde2-5f5c6c23f252","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":187,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"8d1feacf-0591-43a7-a99e-957ea38c3024","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":187,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"b7949f9b-ca71-4da0-b29b-12980bdc4033","block_type":"box","text":"performance.","page_number":187,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"49b9c02a-9142-497b-b8af-13ca91c0523b","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":187,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"64c44323-5621-4e55-8ae6-3ed220bb7b59","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":187,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"5d3ec548-e811-4aee-95d7-8cf1cbccebef","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":187,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"74e6628c-9aae-4c11-8036-8efbc6532957","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":187,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"1b10dd66-7f7b-4cf2-91b9-8ef2ffe191a4","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":187,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"546dd057-b90a-4f43-9e02-ec8aecafe3a5","block_type":"box","text":"recruit and motivate.","page_number":187,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"49b47fdb-bd65-40d2-a509-9564eda15959","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":187,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"df52ad66-3c6e-4c2d-a212-e20b091c19ee","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":187,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"fb4806b6-6fe7-4b32-8667-f0f4b78424f3","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":187,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"e02dae02-3ad3-4fec-bd43-979d4b8bdfc6","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":187,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"22412503-4a6e-45d6-a196-0dcff66fe481","block_type":"box","text":"arrangements include:","page_number":187,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"c5596aa0-c467-411d-828f-a185151e82a9","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"7d4d3584-e800-47b1-8027-78b8a38d2550","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":187,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"60e101f5-fd38-4c80-8c43-3844dc72d4c5","block_type":"box","text":"the company’s size, sector and market.","page_number":187,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"0e5507e3-fbe4-4017-9b9b-9cae10cdfe61","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"58c75d1f-28e6-41c3-a32a-80e04dd49a8c","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"4c75ad12-6022-4f7a-93b4-70096e2e8982","block_type":"box","text":"NM0926U-5975843-187/228","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"75d55dde-69e2-4eb9-975d-991c5d17fb09","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"69019082-c969-4b3f-87fd-0beeedacbac0","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":188,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"a08e9ee7-75d2-4ec6-951c-3a9ac70ae4f8","block_type":"box","text":"strategic objectives.","page_number":188,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"95386506-6f16-44b5-b5b5-a2258b036060","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"a4c56ce5-98f0-45c2-8372-10e35d9b1aee","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":188,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"33659094-1d50-4b3a-80d3-69c5468a64d6","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"970a329c-cd4e-4065-85a8-86c542b4337f","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":188,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"be3c6cd4-589e-472e-aedb-4cba403e0ae8","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":188,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"67bdf2f6-d1b8-4a3f-9a76-569a2bf3f8f8","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"ad3fe8df-081b-4837-b962-36ee303051e9","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":188,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"e15e2eaf-43a5-42f2-93b0-b1deac9849d4","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"7c6386a3-3e9e-417e-a887-7dd1c61cff8f","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":188,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"ad225677-69b0-4c07-89fc-d10ce81082ef","block_type":"box","text":"transparently.","page_number":188,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"aaf0e6d1-7d25-4309-b091-0db8067e5d7f","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"12e703fc-9af2-4e9a-9c16-89f48babd158","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":188,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"4877f145-760b-4c80-9758-c1344e701e1e","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":188,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"808e9023-5cad-4721-80b1-63629b208048","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"7434a3c7-76c9-49f5-b48c-57528da81ae0","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":188,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"8e24105a-8dfe-493c-84d3-d597bfacb37e","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"c3932b56-52d7-4e0a-b301-e4bbb623e066","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":188,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"74779582-6dad-4761-84ae-81ffd3d7b736","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":188,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"5f89ecd1-6bd0-4fc0-8398-e00d0b10a194","block_type":"box","text":"misconduct.","page_number":188,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"e30b2297-a52b-426a-a212-6feaaef54e43","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"658e61e7-8b88-4360-986b-ddcf7ed0c51b","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":188,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"af21c17e-fea6-4f3c-b665-0c6c069ba4ff","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":188,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"54e2eb64-30bd-4a5b-aca0-547b4afe8963","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":188,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"bf81542f-03a1-4d98-8d96-3fe609c8e751","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":188,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"603dbf51-2337-4be2-8c27-ab3f3aea708c","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":188,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"c7d81ec5-0d21-4dc1-bc99-0190bf872e43","block_type":"box","text":"committee, or the most senior independent director.","page_number":188,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"16c8d15f-1b8f-4725-85df-35f5dbb66b9e","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":188,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"c31ebdf1-a6dd-499c-a485-522f22d0bc70","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":188,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"95b3eedd-24f5-4b3a-b87d-08b0a4d74c6d","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":188,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"8ec5c3ce-a983-4b07-9dec-5d2e637a1c5d","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":188,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"4626b85c-e2da-4b82-86a2-998387201081","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":188,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"b11c3060-3111-480b-b248-a9c250198f05","block_type":"box","text":"CAPITAL STRUCTURE","page_number":188,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"a920b68c-6058-4898-a8b2-7630426d831c","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":188,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"22e1a5a1-2ff4-4b95-8f8e-62b310a3a012","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":188,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"8507befe-806e-4350-9c5e-a05b2294f948","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":188,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"16f6513f-3f5d-4ab4-81d0-471991862c2e","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":188,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"4e95b631-3fe0-417e-be29-009004198a48","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":188,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"13804e45-61dd-4985-b818-c5e8095a2784","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":188,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"23d54f7f-552b-4cbe-ba8f-7a8de27f0af9","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":188,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"c4d36dcf-174c-4221-bc2c-174ad16049f4","block_type":"box","text":"Share issuance","page_number":188,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"a6f21c8e-1ce6-487e-9425-7b375cf510db","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":188,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"8e5e12cc-4a2d-4189-8a4b-b7a02a837527","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":188,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"7aee6e98-8ab4-4aac-bbf5-21b4d6032cd8","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":188,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"b49ab8b5-c0b3-4d75-b031-1029a8504a3d","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":188,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"92dfe10f-d488-4cc9-a54f-e0e988a929e0","block_type":"box","text":"market environment.","page_number":188,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"017b8c58-265f-4f53-9c84-282a07d0e72a","block_type":"box","text":"Share buybacks","page_number":188,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"92c54170-8140-4862-8a37-3cc728aaf937","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":188,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"3166df7a-fc60-49a6-8a9c-0974a62570f5","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":188,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"0fd259a5-089a-4179-9b10-bef21c5b2c26","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":188,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"42bab620-3813-43c3-8574-c305c0067a8c","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":188,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"21bd2bbb-92cc-43ca-bbc2-5d3ec09de617","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":188,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"712ac908-a249-499d-a805-fcfbaa49584d","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":188,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"b06a6c06-6023-476b-8356-bf79db322ae9","block_type":"box","text":"of the company and the market environment.","page_number":188,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"abb8aff1-3127-472a-a34e-496a97b2fc9b","block_type":"box","text":"Dividends","page_number":188,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"5f4ac235-d98b-419b-aeff-0aa4f590dda5","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":188,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"d29278a7-3c64-4c19-93bc-d505d88d2e2b","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":188,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"f1a1429d-fcbe-499e-8e29-414a5c16d0dd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8b6401b4-7674-4fdb-aebd-5be85ecfe82a","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"6694360d-0a6f-4d73-8415-ca5e9f53f482","block_type":"box","text":"NM0926U-5975843-188/228","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"298bb4f3-ecd2-4f7b-8c11-bc32b6dfcbd7","block_type":"box","text":"Differentiated voting rights","page_number":189,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"3a2113df-8d99-4be8-b23f-01bba8bbcf2f","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":189,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"a98e5b50-44f3-4ea0-8763-45a041adcd33","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":189,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"7d243a40-9123-45d5-a8a7-539d08349f44","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":189,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"1d0b6455-ee9f-49cb-b157-2d6c256f5129","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":189,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"2680df4a-48d7-4270-a012-e4dbb2f91975","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":189,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"04db3dfd-df52-4f56-a73f-e180e7ffaff9","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":189,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"8f04fb0a-f959-4697-b0b2-ae56579b1da5","block_type":"box","text":"analyses of proposals.","page_number":189,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"e8e7d0d3-5e4f-4abe-8cfc-e999703789d4","block_type":"box","text":"Mergers and acquisitions","page_number":189,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"9726e1fb-e90d-49d8-8bb4-5de428fca3fd","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":189,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"fed14b91-35e5-47ca-973e-7576bf8b8f43","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":189,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"0735a58f-3329-47a2-8335-ced1af3ff8a9","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":189,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"f2a29d87-93d6-472c-b8e6-f371e2293b39","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":189,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"9632a59c-1003-414c-b5df-d42b6fa63a38","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":189,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"fac223e3-a1b3-4d7d-9366-290421f8f96d","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":189,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"f5f97c47-7d46-4e49-93e2-c5f4a23311dd","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":189,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"c8439e0f-e78a-473e-8da7-31dfd7fea609","block_type":"box","text":"Anti-takeover defenses","page_number":189,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"19676b29-424e-4c50-ac3c-15801e0c7ba5","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":189,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"52c9c6b9-c69c-4fed-9714-624f4407b6b6","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":189,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"ced13ce0-8577-4e3b-958f-2cd268de8c5c","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":189,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"6227cece-fcaf-44a5-b257-c208a2ccd43f","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":189,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"8ad914ce-57a7-48fe-a196-d21bfef58479","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":189,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"7f06b42e-f78b-484c-832b-2613434494ea","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":189,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"f89285f1-d5af-4b0b-b379-8164febb840b","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":189,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"31c2cbc2-3b09-4c04-a69a-aab80263b1ab","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":189,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"b93def97-0786-49b2-a5f2-8f3de5762c03","block_type":"box","text":"Shareholder activism","page_number":189,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"19241522-0a6d-4283-ab81-dc55104340be","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":189,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"143d1e9b-babd-4158-bce3-63f555074e88","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":189,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"223b519d-bad4-4fcf-bc79-c41d61ab6482","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":189,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"178ace05-cffa-47a1-b2cc-5c933e161d19","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":189,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"470133f9-d257-4ccf-82c5-ee5c39739297","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":189,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"611ce18f-e9f5-486d-bf82-169dbcffdcee","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":189,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"047bb0eb-702f-411b-88ab-f2e952ad827a","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":189,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"9d11785d-83bf-48d4-b013-c479b2d9485b","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":189,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"ea8bbb79-c626-4e0f-9849-f8a0be070bcf","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":189,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"f99860c8-6e41-4df3-823c-a9a399a5f31d","block_type":"box","text":"protecting shareholders’ interests.","page_number":189,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"f8ad57ac-5535-4707-bf5c-dd54743ebf7e","block_type":"box","text":"Significant shareholders and related party transactions","page_number":189,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"2336525f-797b-44b9-b0f6-16b9590eede7","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":189,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"b0fec410-f98f-4f08-8f39-d01bfe309be7","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":189,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"3bef45ee-a9ae-4866-800a-3319db600782","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":189,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"da6a87a4-b022-418a-af37-7260f192d7ae","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":189,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"68a90bec-4f00-491c-b0bf-44981a9fdd21","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":189,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"b6f307f4-5eca-49a6-a0c0-bac634e3ef83","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":189,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"543fa80c-601d-49e2-9c0b-17e3b0eed391","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":189,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"1ab497e6-5f12-4a34-9ebd-30c65836402c","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":189,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"20e8deee-3e14-4673-90cf-2fe9a55401ed","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":189,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"661de71a-ce60-40ff-b832-7c1265876389","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":189,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"fda2d22a-b722-4234-9453-6d21ec67468c","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":189,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"e454655d-934a-4179-a853-0967e60a12cd","block_type":"box","text":"audit.","page_number":189,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"fcd9d202-99ef-4327-a3b4-571a98ca6d8d","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":189,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"02e87aa0-049f-45a3-b89f-fbef75ff5159","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":189,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"827c3a64-9ed4-4e28-bbcb-bec4d4514e9e","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":189,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"1efb0e91-c6b5-4c37-a03b-0ba5f8471d21","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3f4ae0f0-04cd-49a7-913a-52c74aecf749","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":189,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"7b2a970e-ebcb-49bc-accf-4e18bcba46a3","block_type":"box","text":"NM0926U-5975843-189/228","page_number":189,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1fdebca5-cae6-432f-b0fd-44a7e73e54a9","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":190,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"de356ae9-1534-49a7-ae18-4c2bee811d47","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":190,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"d226e137-36ac-430c-8ddf-74d186d9edf7","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":190,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"18be6cb1-65b1-400d-a20d-1ef4b63e8338","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":190,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"4633cd16-e782-4c90-88ad-210fec6a472c","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":190,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"76b5feab-c0f9-45f4-83e2-7a8f957e41bc","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":190,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"03fd59e9-2225-44da-8225-25cdb1bdf561","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":190,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"53dc4d9b-0003-4c1f-bfbd-910055a25399","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":190,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"9fc5eff3-70e2-45aa-9cc5-8d15a101bb78","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":190,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"112cb645-6160-4376-bc87-435756d6e598","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":190,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"0758a44f-7de3-4d66-8d37-66bdee84bb8f","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":190,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"943d29da-2dbb-4e86-ba40-a6918eb8c4ba","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":190,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"c36326c0-f27d-45f4-824b-6438834cba19","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":190,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"66c99682-2d8d-40e8-82f9-09e5474801f6","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":190,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"7ee94d2b-bb1b-46b6-804a-6961ec28c3d8","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":190,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"215f39ae-6042-4541-9784-474221505434","block_type":"box","text":"9","page_number":190,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"6e75071e-5e5a-4cc1-8e41-e67d272849ad","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":190,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"c33456a8-4fc1-471f-bfc7-630dc98dff40","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":190,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"cd4a9236-9886-47dd-a0ce-22a6a84edbbc","block_type":"box","text":"standards specified by policy makers.","page_number":190,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"84925f41-0bf2-493e-9c39-312b802a6572","block_type":"box","text":"10","page_number":190,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"b249f764-0ed2-47f1-8768-7d28dae9810e","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":190,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"9b90685f-e53a-49c4-bd6d-e0022a50ffe2","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":190,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"08fab675-77f5-408b-8080-1b27f03057ff","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":190,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"3d9aa1ab-d0a1-453d-bd21-d24dd134ba23","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":190,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"a2a6a3c3-bfe9-4db9-80ab-b4d6c57b052e","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":190,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"0bffedea-82b5-48bb-bf75-7b5a47908b0d","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":190,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"6791192f-810e-428f-bd4f-dd37e82353f5","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":190,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"6e436d1f-862a-47a6-a088-9b60bcd09784","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":190,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"73b30661-e0fd-44d8-8b42-ba58d7998d56","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":190,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"386540a4-df7c-4bec-acd3-d0670281a06b","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":190,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"5e459485-36f4-4483-82a4-9a65504d1a52","block_type":"box","text":"remained independent.","page_number":190,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"25ed5d19-22f5-4b03-89ed-78e9843f1b33","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":190,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"ea3024d4-28ed-4464-b204-b932ad84f4b4","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":190,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"8bbfd717-b058-4370-915d-0dfde2eb9a69","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":190,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"1e2f7bf8-5149-464f-9c7f-67ff3ce54cc1","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":190,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"548fcb85-ce1f-489d-b1d0-82f58a7f2cdb","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":190,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"3fb949b7-3604-4df4-86b4-27b4fb1a26c9","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":190,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"70b29724-38bb-4d97-9166-4a8d598a38a3","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":190,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"133eb142-fc0c-4ad1-b7fb-c6815f412804","block_type":"box","text":"General shareholder meetings","page_number":190,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"1d6c3cd1-0563-4f9c-9076-f1395e8a737c","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":190,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"b65377da-f665-41da-b853-b0d1a2ff3404","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":190,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"d1e15818-367a-40c5-bb90-7136709f62ab","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":190,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"19dc8f9a-613e-4e73-af45-5d382cae154c","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":190,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"3873c29f-5a68-4134-a78c-4becf818652c","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":190,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"3aece334-0dfe-4264-bce0-b3d0e1401212","block_type":"box","text":"an in-person meeting.","page_number":190,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"9dcaef27-beb8-4c3c-8ae0-760b843295a2","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":190,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"c986f2c0-0dc0-4c92-96dd-960e8d4a72bc","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":190,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"9964b0fd-449e-413d-b228-8b54e05561d6","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":190,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"ae375318-042d-4af7-9ed9-d513c0a63de3","block_type":"box","text":"participation.","page_number":190,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"7a0fe1ac-f481-4584-a20a-1e809b98df42","block_type":"box","text":"9","page_number":190,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"d9f75a4b-55cd-4e0c-81eb-4dbfec1aab7b","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":190,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"3f125303-1b66-4472-98a1-c406e0430e50","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":190,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"c2934ab7-dde4-4733-b6cb-13228117e87f","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":190,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"b025dd42-9277-40c5-a64c-4ce84d264a68","block_type":"box","text":"Disclosures.”","page_number":190,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"8a4efb66-bc32-41df-b433-8a53f6b66058","block_type":"box","text":"10","page_number":190,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"4412b66a-466a-4422-9edd-19adb172918e","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":190,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"f804618e-583f-46f3-81a0-5588b5518a96","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":190,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"f8143648-e824-4394-9ceb-28ca6ecfb4aa","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":190,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"7768eb50-092f-4ecb-8e3b-374222aa4802","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"25942bc2-9507-483e-b4a8-bf61cf1f5aec","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":190,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"dfd4d1a1-7a00-43a6-9902-bcb4a0871228","block_type":"box","text":"NM0926U-5975843-190/228","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ddbd7d38-36a3-46dd-9729-b9fa4a229c66","block_type":"box","text":"Bylaw amendments","page_number":191,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"7e062cf3-c89a-4245-a872-ebf466e0146d","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":191,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"0fc3c341-964e-4b59-b173-96a274888b15","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":191,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"1afa4a82-9043-45b2-a05e-1f6c10019c71","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":191,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"cd484489-db5b-4a40-89f9-fa1a8ba0d11d","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":191,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"c2777dfa-5752-42da-a26d-00c05a708bba","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":191,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"c1691007-1128-445e-a876-f4304ec08c83","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":191,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"db19b87e-3d13-4747-859f-50a6ef8ec5ca","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":191,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"c0d32ad3-ea8d-4b2f-a15f-7430f261be9a","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":191,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"170fa068-32cd-467e-ad5d-61ee5fc86f89","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":191,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"f807db1d-0d66-4a6a-9d53-f553065bd4e8","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":191,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"f19d3b81-3d11-4f0c-bf1b-20b53ce2126b","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":191,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"881c0ad6-15d5-4c4e-ac02-ab50df85eb43","block_type":"box","text":"nomination process.","page_number":191,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"6fcc64f6-d26e-47e8-b270-b26406fac577","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":191,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"7ae2f6fa-c92d-42e8-a41b-53fa7b5d7835","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":191,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"1ea0ee6a-d081-49be-8bbe-b70e12f5d9e8","block_type":"box","text":"Change of domicile","page_number":191,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"9ffb0e21-7972-436b-a19e-09f2ca3a54de","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":191,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"90b3be6b-1e79-4617-91e1-ff2eed9c8fa9","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":191,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"93772b7b-d31e-4d80-8627-4c21f8aea767","block_type":"box","text":"immaterial.","page_number":191,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"386a5fa3-9b2d-4812-8c19-beecf18ad4ee","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":191,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"a7c98205-f07f-48d2-aa40-eea3dd671d74","block_type":"box","text":"with our clients’ financial interests.","page_number":191,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"a961c5db-9a6e-45bf-bf8e-1046c41eea97","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":191,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"3147a430-5ebf-4751-acc9-37b690f842e4","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":191,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"386928fa-ace5-470d-befc-24348e6a3dc8","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":191,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"8192d1e2-df7c-4a21-aacd-d9cab5bf9a18","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":191,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"8068371c-e0ee-458f-9257-d993ba4079c0","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":191,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"959cb538-2059-4816-b88a-94c13f97cce0","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":191,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"967a4457-2f7a-4cf0-883e-48b4291dd835","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":191,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"a2103632-7fce-4c07-8dd2-4249646eede6","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":191,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"91df0613-5da4-482b-afbc-c2f6e4b5855c","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":191,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"b2d55fab-2f2a-4ad7-a7a5-1fd2e94b42bf","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":191,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"7f95d54a-61cf-4339-abb1-a678dfc97a29","block_type":"box","text":"relevant to a company’s business.","page_number":191,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"ff5e12d7-3f49-41fd-94ac-762ef461663b","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":191,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"a2b63f4e-a902-4d73-be3b-cdce18b88cb8","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":191,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"90a4296e-511e-498b-881b-9d2335e78eaf","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":191,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"867471e8-c1be-43ec-8b94-77960b269e06","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":191,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"3eff247d-6bc9-4f9e-bf6e-786d925053ed","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":191,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"3e4ba74b-3510-4e9b-8a2d-b2743f7a15aa","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":191,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"ea428b49-eb76-4380-9188-5533ae339dd8","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":191,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"b7133518-2865-4405-8caa-1d654980c062","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":191,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"43899eb4-85f6-4e47-aa50-7f45b50ec016","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":191,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"48e4fa0c-861e-499b-81a5-9b2d1fb02bb5","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":191,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"b6f35435-11b1-4729-a33e-aaea6f72a9fd","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":191,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"8c9e205b-5cd6-4800-a1b6-c873a09ff5d9","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":191,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"4da3db45-b5d1-45e9-b7a1-5aceb95d470b","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":191,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"526e7022-ca99-4e47-a410-cd47c3ccb326","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":191,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"0edc0fc4-8c7a-4d1b-a6f2-ae155a2fd0c0","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":191,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"40a8fb7c-6cff-4607-84e2-13f10fcf43b1","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":191,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"4883418e-5de0-402c-83cf-720d6681ffac","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":191,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"5ea0e5e9-bf1e-40ca-ad57-4cb5a5f18fb5","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":191,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"d298e812-3547-4a18-8968-2c1da7a304a4","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":191,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"27ca94f3-15ac-4808-a239-b534d047d490","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":191,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"9bf56044-e2dd-4ed8-8d8a-117a45890311","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"355ea45e-d9e3-4cd2-a3fa-43d91f9f080c","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":191,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b9e5c5d5-29d4-4db2-b959-1bd1767d6ffb","block_type":"box","text":"NM0926U-5975843-191/228","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"20cf883c-2c69-4c72-a941-3392a3fc06f8","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":192,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"a2cad5a1-2a5c-4660-8959-826171ae3df6","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":192,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"99927bb6-1fe6-41b7-b33c-76f2ad849d19","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":192,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"8063b358-403b-45d3-a69e-8489a72b4453","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":192,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"4dd5e06f-d1b2-4997-a33d-043ad5c05076","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":192,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"fdf2c14b-6f58-4803-940a-32a5f2048358","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":192,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"2026bc7f-a434-4bf9-9436-807ad219f46f","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":192,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"c706cb2b-fde0-4034-aa5f-baf636142461","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":192,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"86ce0dd5-d99c-4c0c-b083-c6b7ea8db0b5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5f7d9d18-f77d-41fc-ac87-8ca76ef5ead5","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":192,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"21de7c1f-04eb-4ed2-8c16-95fdc2296a0b","block_type":"box","text":"NM0926U-5975843-192/228","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e51bfbf6-05c0-42a9-8367-4336cd6bfb74","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":193,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"b5f6c2bb-4d33-47fb-96c7-2d4740e74059","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":193,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"77439915-1e5f-4819-bcd2-c2c5d4cd43eb","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":193,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"c6234bd1-b6a9-4cdc-b5e6-577edc7014f2","block_type":"box","text":"11","page_number":193,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"1bfea8d9-a313-4888-82e7-202729b74690","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":193,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"0d7c9189-b116-4df7-b6ca-61fe10cfee08","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":193,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"224ed8db-1328-48a3-a288-7b3dff2d3cde","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":193,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"9c99e21d-a4a9-4353-b1c5-45f45f4790d4","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":193,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"14235cee-a80c-4836-8331-c84a4006d27d","block_type":"box","text":"regulatory requirements.","page_number":193,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"e08197ba-8df5-4370-9d77-749ae621faac","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":193,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"93b0aeaa-eaa7-486d-a657-c7585ea273a7","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":193,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"99aaf1ec-9c92-428f-a71c-3802befa7b54","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":193,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"82851203-9216-42c2-b586-7f263d0667a8","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":193,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"f6f6231f-3c26-4c8e-b8e2-b2e73f720408","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":193,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"3464bd08-2dfe-47ea-aebe-fd4e0caf1e32","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":193,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"60891601-6a96-4267-bd3d-08752dd1097a","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":193,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"a1e3188d-e66d-4285-b719-588b3a4ec205","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":193,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"ab81c86b-7d62-41a6-b626-1d31b380f749","block_type":"box","text":"returns.","page_number":193,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"77d1230e-e9db-4a95-928b-aab072fc449d","block_type":"box","text":"KEY STAKEHOLDERS","page_number":193,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"dfd2851c-ec09-46d6-8f81-2acb2897416d","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":193,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"e633d3dc-5de7-424c-8d16-69a9134f508d","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":193,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"880a70f2-c993-4542-ae19-0ef5c7c09173","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":193,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"43a49aec-87ba-4c1c-8fe2-a6e780226fd4","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":193,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"20174a8f-8769-47ad-9529-e432343219bb","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":193,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"0856bb22-0c33-45a0-8423-b070149a5e81","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":193,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"cccd0a9b-5680-439f-80db-a2e01d085000","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":193,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"97af4729-c070-4061-aed5-6a921fd549c7","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":193,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"513cea5b-0893-4b73-8f63-fec5fd7f29f2","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":193,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"4b061138-b646-455c-92e4-fd00c3daef9f","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":193,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"aed2390b-7c3e-4fb5-a3cf-307adf43c562","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":193,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"0f82dd57-6918-4fc2-a51b-d05cb8035a56","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":193,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"1c56d1fb-784e-4baa-bb75-09a13c88e1df","block_type":"box","text":"i.e.","page_number":193,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"577b193a-0b04-433c-8ef3-b83581bf3adc","block_type":"box","text":", one in which global","page_number":193,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"e083f41a-5989-415c-9b78-9cdf2d45afb9","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":193,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"e3e47216-18d7-48cb-96d6-5fe31b38c278","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":193,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"320e09e0-a197-499d-be11-00d9e948f188","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":193,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"04af330b-67bd-4af9-9242-a5eda6d5679e","block_type":"box","text":"client.","page_number":193,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"d1a88989-2432-4a2e-9ae6-9ee74fce8508","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":193,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"1021a319-aeb0-4955-9b48-ed8908ba3435","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":193,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"a054b58e-89c0-488c-ab01-f1454d53bde0","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":193,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"1938906a-551c-4833-8b45-bff33976638e","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":193,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"233753bc-ebce-4691-b0de-de343bff7c71","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":193,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"012e9e77-c103-41e5-a6db-faeb06e017e9","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":193,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"ce86321a-1412-4456-b0d5-e51c63844af7","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":193,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"ae2a50ba-da06-45a4-99e7-07434de7c8bf","block_type":"box","text":"1 and 2 emissions.","page_number":193,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"dee80169-5cf7-4a75-ae26-a15a91abd385","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":193,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"beb874a8-23fd-4cc4-8592-07f3e612ac52","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":193,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"12b1b24b-090d-47ac-a0f0-4a4b512cbf2c","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":193,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"4c979a08-6fdc-40a3-a7d7-e31f29ba7f34","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":193,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"088d603a-ecf4-4f4f-af16-9a98a08d0e54","block_type":"box","text":"11","page_number":193,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"836524f6-20f7-4b3e-8b51-384581ae9ac3","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":193,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"3cd9d8f0-e6a1-4c93-b540-922fc2facbe5","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":193,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"89fd52c3-f037-469c-b659-bf220dcb89d9","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":193,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"0b3c017c-3af6-4562-a086-22d6dde6b36d","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":193,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"7421607e-50d1-4640-8c9f-f3e48a5ee415","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":193,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"8d645c69-5698-4776-8d30-9f76a8c5a8be","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":193,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"2255fb92-dfdc-4753-a874-ac4e55c7f507","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":193,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"a7fe4033-109e-4b16-b605-ba38a8313e71","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":193,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"ae3abce7-c6e6-4ea8-9235-0db437463527","block_type":"box","text":"sound governance framework.","page_number":193,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"b67a41ed-2267-4d55-aa9f-daf21fcb5c42","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1cca83ee-8029-4d26-ad65-58ca6e019f37","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":193,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"1ec161c7-f691-40a4-931a-86061f77cc79","block_type":"box","text":"NM0926U-5975843-193/228","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d49ae2d4-0448-42fd-8905-1c941395b011","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":194,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"c3eedd4a-0b41-4e33-8cb8-9631d94b626e","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":194,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"4dde6da2-1d33-4523-9a45-ed013c331f8a","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":194,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"7b89cae8-9b72-43a6-b968-c1c44f0db92a","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":194,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"beb6c2d6-6945-4a61-8d1c-239d60de419e","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":194,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"986056cd-9605-4b3b-9d3e-6815c74817ad","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":194,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"52d6ad56-b456-46b7-811a-36e5a7d87702","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cdc977c6-7a5e-4b6c-ad32-2ed2f408aa03","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":194,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4b587073-dd25-48fd-81d7-30af93139763","block_type":"box","text":"NM0926U-5975843-194/228","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"273cd682-e369-407f-a6c0-c253129ae311","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":195,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"398c6797-4dbb-4bbc-9b4b-36501d4cc882","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":195,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"246024cd-c6a1-4a22-b2c5-d258d5fb62c8","block_type":"box","text":"Oversight","page_number":195,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"51ad3497-953e-495c-a85e-90c7dbcf8885","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":195,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"3bcc5617-b4e3-4d20-9d46-74fd5b583823","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":195,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"0bb93830-ffad-4dba-9148-f2424f66e861","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":195,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"712a4171-8674-41ce-8ae7-6783a649d010","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":195,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"efc83567-5f21-4e8a-850b-c16a4e4c6554","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":195,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"76fe8a37-0210-4bac-b6f6-f5bfdbc0a46d","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":195,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"a0b97a4f-a5c3-41c9-998e-70838c1599f9","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":195,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"e8b19421-08df-402a-8667-ba352b9bc54d","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":195,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"55836726-3992-47b0-a5c2-aa025fcb6448","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":195,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"a5cc0bea-2392-4b03-b351-5b0d4a936718","block_type":"box","text":"relevant active equity investors.","page_number":195,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"21c54170-614f-4e7f-aa83-bff0bb5902e3","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":195,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"9e4d664e-6bec-42a6-9b14-c8d7f49e8fa0","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":195,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"fc1dbda9-5a59-4b58-a1b4-77900f0fad0f","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":195,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"0ddd66fd-8d4e-424e-a6b9-17bfe0ce90f7","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":195,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"e5bc14d5-2db0-4aec-876b-d6fc8ed72585","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":195,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"10254585-459f-4ba2-b2d8-bed5ca0de352","block_type":"box","text":"third-party vote services providers” below).","page_number":195,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"84728fe3-c2c8-4a9e-8515-360ffedb0da5","block_type":"box","text":"Voting guidelines and vote execution","page_number":195,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"5b6245b5-681b-46ec-856f-e8e391f08236","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":195,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"858597a9-b501-4dc6-b19e-3b9cc147c96f","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":195,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"b8bf8d8f-970c-442b-8b52-18af5a12bfb3","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":195,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"0f4c1ec0-5980-4200-bdf9-c1320d22e06f","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":195,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"b35f74a4-0749-4b1f-baf0-524293a200e9","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":195,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"95e83dd7-abbe-4008-9eb9-dcc7cc690b0b","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":195,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"6c1f99cb-6730-41b8-9621-6d2b86e22b59","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":195,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"e2c922a4-b1db-434d-99c3-6abdf4d6b3dd","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":195,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"4dfea251-26f9-4903-ae9c-54e2759415ee","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":195,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"a012380d-e412-4f5f-9a80-cdddc03da10b","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":195,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"eca62c35-5171-40f0-917f-55016ef6a249","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":195,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"f47b23d7-4468-418c-b67c-99da3635ae5a","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":195,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"95db30b6-5e0c-420d-9a55-52c0d418a16f","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":195,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"7d54e1ba-963c-4233-a461-87db5032586e","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":195,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"7eb4556b-d60c-4da9-8514-7ddd39b6cd53","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":195,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"e07715e5-4248-48c8-8815-6c3e1176c2f6","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":195,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"079cce24-4f90-4106-9e38-c9022cd94e19","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":195,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"53f8b48a-4ae7-45b5-b5ec-2512f98dc547","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":195,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"41883d76-b8cc-4c26-bd4d-d89295902cbd","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":195,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"2441a105-4393-477c-a829-f3cb9dca20c2","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":195,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"1be0f661-6562-4e3a-aff0-8a74acab6f8e","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":195,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"6fef1c08-9072-4ff6-9a5f-7251bc3e577b","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":195,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"d11aaabf-be0e-482a-9d8c-d181f99f5966","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":195,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"c3e842fa-0219-4d8e-840a-1a7b2b549612","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":195,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"2ac77241-eccb-4156-bff9-7c6d3335b3a0","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":195,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"abff4e76-3373-462f-b7f6-bb678dcdc3bb","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":195,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"4245db0f-dd31-4c66-ae0e-c654b389eaf3","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":195,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"1ac9aa0a-c03f-414f-8a5d-efa74109f981","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":195,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"7070864b-261c-43dd-acf0-6807ddfd648e","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":195,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"1186b626-0109-4391-88b0-4e76b1ec46b2","block_type":"box","text":"Voting Choice","page_number":195,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"7f9e7ddf-7419-4ee7-8b57-6f988632cca8","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":195,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"d40c6a4a-2f74-49c1-884f-3d0579554822","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":195,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"369843c6-ee65-4c64-8d9d-339de6df6842","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"dd02583f-d60b-44c1-8888-f38b7935680b","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a43431be-fea4-4303-b26b-d840cadc8f61","block_type":"box","text":"NM0926U-5975843-195/228","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9c3ad337-eb08-4fc8-9140-57efae4a0752","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":196,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"3e18130a-6dca-403d-970a-7366672939a1","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":196,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"2cf87fe9-a53e-4b17-89bc-248475a28f1b","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":196,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"eb1e298f-732b-4340-8628-4d8af02fff86","block_type":"box","text":"strategies.","page_number":196,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"fbf6c289-032e-4c4a-8e2a-12b20e02cea0","block_type":"box","text":"12","page_number":196,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"b0d17a19-9bf7-4e2e-b7ff-009a72775e6e","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":196,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"179fc91c-b454-4828-87f0-e7ee9f042aa2","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":196,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"5293b33c-186f-4cf6-88df-b1baa0b18adc","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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All other trademarks are those of their respective owners.","page_number":198,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"2a0b9039-fd03-4352-8659-65bff466d40d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"884551a0-4ac8-4345-bd7b-74afaa46f9b4","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"368dcfd2-279b-4d3c-9b70-a7781f64cfd6","block_type":"box","text":"NM0926U-5975843-198/228","page_number":198,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b528b9f6-2e06-4782-8199-654e6477d623","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":199,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"863b2c6d-59a0-4980-b90b-0f708b9c7773","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":199,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"9c0f71cf-23ee-4998-b9af-b1e310b509e7","block_type":"box","text":"□","page_number":199,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"4c5c0766-d372-4a20-b4e9-d57d801f060d","block_type":"box","text":"Money Market Funds","page_number":199,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"8e8e5709-e552-42d4-a5cd-2aeb8dea9bcb","block_type":"box","text":"□","page_number":199,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"1f43fe51-bad6-42d8-be4d-0e1c3b9b4ae3","block_type":"box","text":"Closed-End Funds","page_number":199,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"c7998524-b79a-4c1a-a446-4e3628af9af0","block_type":"box","text":"□","page_number":199,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"a9aa8850-c5fd-421c-ad6a-3911277e371e","block_type":"box","text":"Other","page_number":199,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"f2f537c8-5b06-4ee1-8509-0a3d921f4725","block_type":"box","text":"Objective and Scope","page_number":199,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"645701ee-1030-4f90-abb2-81e1533fb6d8","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":199,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"4f06994e-b138-4e1e-8b9c-3000d022130b","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":199,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"35c46351-f29f-4135-9222-5af631b63603","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":199,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"ef6540d2-dea8-4ad7-acd9-00a834e7d83e","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":199,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"3a47d8df-2dc8-40c7-b8bf-acd471916bbc","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":199,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"af14e52f-55c4-43ac-bab0-ae1c9d5f7e19","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":199,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"8b3d6bd5-719c-4ecd-a4ed-a8c390718882","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":199,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"daf6afb2-bbbe-4a13-93d7-8bc5371a20ce","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":199,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"1acb9c47-c2eb-40e7-8ade-26f5202e1668","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":199,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"e68233e1-f596-4ff9-8b86-d425a9664113","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":199,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"4e4dc2e6-39f6-4f81-9de8-af25608f00c3","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":199,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"a4dff99a-8179-4184-972d-bc4e309b7620","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":199,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"57bc0528-65f8-41ed-8dd3-928c0955d4c5","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":199,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"cf5c5779-816a-43f8-b875-8608eb6545fd","block_type":"box","text":"Appendix A.","page_number":199,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"9be8537f-f5c7-4db0-b893-58facf083b6e","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":199,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"cfa04a03-2334-447e-af34-168b2eb8ed17","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":199,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"5cec6e33-4070-4834-ab52-02053e307e04","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":199,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"89eadcd5-71c9-446f-bfab-c3048a051507","block_type":"box","text":"Conflicts Management","page_number":199,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"5de0ade0-5798-4e95-b49b-d2ab6c66ea0f","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":199,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"cc8d653a-3781-4d00-aeea-dc39d3309a2f","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":199,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"2c89c919-f057-4187-9517-c09ebdd3c3b1","block_type":"box","text":"proxy voting responsibilities. 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The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":199,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"6796ab06-b9b1-4a1b-aed5-84568843d76a","block_type":"box","text":"connection with proxy voting.","page_number":199,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"614fe757-553d-4677-b425-69967eaf4ebf","block_type":"box","text":"Reports to the Board","page_number":199,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"1aba8415-7950-4d20-9a71-c019d9259bd3","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":199,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"93e2b052-028a-44f6-81a6-372887950230","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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Engagements provide companies with the","page_number":203,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"07aaae14-5c8a-492c-8697-d27ac07f6250","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":203,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"e80947c2-1667-44c4-ac3d-1cb39e1a8de5","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":203,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"b98e416e-d549-4fb7-8b2a-218eb570c74e","block_type":"box","text":"1","page_number":203,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"f6a9d231-f12e-4014-94b5-75ea8b5a6847","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":203,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"55d1b242-4b8e-427f-bf62-f9a943ca8542","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":203,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"068ae56a-bf88-42ed-9b22-e87d90c7c222","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":203,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"b6bfeb2e-6999-4375-90d5-5b268534f64f","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":203,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"7605c47c-574c-4512-8e27-3044f5445d08","block_type":"box","text":"2","page_number":203,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"a3e7d08c-95f8-4297-9cd6-3f055182c957","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":203,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"9e19f8ed-5a96-468e-a2f1-24112d19fb2a","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":203,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"a48bb01a-3279-475f-b812-926aba2129ac","block_type":"box","text":"material business risk or opportunity.","page_number":203,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"607bf38d-0aeb-4764-ba2c-9eabe283f229","block_type":"box","text":"BlackRock Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"be489880-c134-467a-96cd-b8eb205fa26a","block_type":"box","text":"Global Principles | 3","page_number":203,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"b9afb3f4-e163-442f-90f7-3c0e9b49acf1","block_type":"box","text":"NM0926U-5975843-203/228","page_number":203,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"44bf2cae-1dbd-4741-a3af-04a3a817a231","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":204,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"8cd44047-8155-466e-a4ff-ece3d12d6460","block_type":"box","text":"governance. 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Our regional voting guidelines explain how the BIS Global","page_number":204,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"539591fb-069c-4402-a4b0-7df533d9f681","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":204,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"7a8f609b-9a71-4007-8426-90c804e66949","block_type":"box","text":"4","page_number":204,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"e05042fc-08fe-4643-85aa-0962840ad66e","block_type":"box","text":"3","page_number":204,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"fb66dcbc-0ac3-4700-a793-05480adcab1a","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":204,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"3197fab5-a139-4165-8c94-38c5266932cb","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":204,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"8b3df5de-f791-4553-80fc-cb1da00be209","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":204,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"2353bb8b-41c8-4826-9a52-46db9023e5eb","block_type":"box","text":"4","page_number":204,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"31fb93fd-0289-41f3-bcb4-7da7957cf6c6","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":204,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"c29537c7-28c3-4558-b9b2-6a3fc43193a1","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":204,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"23443a21-72f1-43ce-836d-181718c9d646","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":204,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"c541ee58-1bfa-4f9b-9d77-812828615372","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":204,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"8b4bc7cb-67fa-4747-b93f-c288602f5a8d","block_type":"box","text":"guidelines.","page_number":204,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"bc368c92-ff3f-4cef-aec8-e0336c650053","block_type":"box","text":"BlackRock Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"78fc0a43-0716-48ff-a296-e3c6e015aab3","block_type":"box","text":"Global Principles | 4","page_number":204,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"35c42400-83d0-41a6-a6b7-ddcfa537f990","block_type":"box","text":"NM0926U-5975843-204/228","page_number":204,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"22478557-f93e-4366-8713-ba4d29a8bd78","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":205,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"644810b3-3394-4ff5-9106-f52fed354b68","block_type":"box","text":"Oversight role of the board","page_number":205,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"e7f3940a-38d0-4686-bad6-6cde8f906fbe","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":205,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"05fd1431-a471-4a50-bf02-dc7c38df2ea2","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":205,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"2508c08e-29da-4f27-9458-f3f5924dbd82","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":205,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"48c90035-0994-4685-9910-935eb64f5cb1","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":205,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"baf5455e-44dc-4463-8e18-ef7dee706260","block_type":"box","text":"long-term financial performance.","page_number":205,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"c8cdd25f-505c-4db4-8506-10e39a119034","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":205,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"c584e7e2-239d-40fd-b2b3-bf5c6848f961","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":205,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"99850ba7-4f03-41f0-8ad3-3485eebc43eb","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":205,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"b9ed9357-55c3-4832-953c-d9faa08ca6f7","block_type":"box","text":"the business environment in which a company is operating.","page_number":205,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"e438a90d-8c86-45c3-ae4c-a179d4656804","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":205,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"3bc6c8f2-16f1-4397-a620-e46ac22d21b8","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":205,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"83d2d0c6-5e43-40d6-a158-8bf8e2a6a465","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":205,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"822b6f65-47d5-4313-99ad-e551a5c9363a","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":205,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"09373f69-ac88-4f3b-a3c1-50f049c9ed88","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":205,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"2d589578-9326-4980-bb46-1d6c50987e03","block_type":"box","text":"mitigating such risks.","page_number":205,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"ba1de247-daac-46b7-b6cf-e6f09d3a3225","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":205,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"ba17c757-d3b3-4c01-b41d-6cd047383c37","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":205,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"d86b2e9e-f250-4c81-bb0c-a6015a5221d3","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":205,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"d2f604a2-088c-48c7-8300-8d7132f031d4","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":205,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"31ed8d10-cc18-4a98-b904-db4074ba3502","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":205,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"da6f730f-e6bb-43b8-9c5b-affa3a47c102","block_type":"box","text":"strategy.","page_number":205,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"ce74cf28-d236-4063-a68a-2972827ff585","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":205,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"1e8c3c53-e808-4692-9f7b-18d6715b6398","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":205,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"05407e58-1826-49b0-98db-b30c558a62c3","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":205,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"a548a0da-91ac-4c3f-bc57-c41dd365cb41","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":205,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"9491b6b5-44c1-457b-b414-e2bfa6fe9f8d","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":205,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"0084e03d-eddb-4ecc-9269-b9cbc7ddb0e2","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":205,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"fe33548d-8a2c-4935-82f1-525a1779d302","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":205,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"f84bc76d-bad4-4f13-bb9b-c778aea80c6e","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":205,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"1b1902f2-5c2b-4f7d-aa2c-46b1a79c198b","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":205,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"aec65ce3-e7f5-4e29-9210-a7c36baf49c3","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":205,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"2d2d8e3b-2374-4c4a-8e4e-15674e7b942f","block_type":"box","text":"Regular accountability through director elections","page_number":205,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"c5212d95-8af1-4738-99c6-8488c362e243","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":205,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"9c649418-6638-42d0-bf84-546ab6ba07af","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":205,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"cd4d4c57-761f-45ab-bc41-277eb8020936","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":205,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"45831fed-5729-402b-bbb8-c6c9760bbc96","block_type":"box","text":"5","page_number":205,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"9f14a98f-787b-45db-b107-82ac5c07abf5","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":205,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"3c7cdd79-42a2-425d-8f34-2dba5f4cd45b","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":205,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"7df4a359-562d-42c3-b9b9-a29d48bf1e8d","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":205,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"1382675f-09d4-4cda-a9ef-4e18f6d65c81","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":205,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"e42fc157-9bea-429a-9829-506ddeca8cfb","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":205,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"5ad86e8c-c85f-44c8-95fd-08dc7f88b78b","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":205,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"5f41e644-577b-4e19-a2ea-80e680fcbe8f","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":205,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"c1bf7499-ee2b-44ad-bf39-747b6635cd7d","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":205,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"242e6403-ecb7-4271-af99-cd1b9b13a10b","block_type":"box","text":"5","page_number":205,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"843ab7cb-c37a-4773-a467-8f8292c3d928","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":205,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"ac1b182e-9b25-4f6a-9bac-af40c75116a3","block_type":"box","text":"market regulation or voluntary best practice.","page_number":205,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"5f7ee033-8abf-4fd5-a1a8-858c60beca4f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fcd4645b-a9bc-4d1e-a5e2-9fcb083afe79","block_type":"box","text":"Global Principles | 5","page_number":205,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"bdf439e5-8b90-4b23-bfef-2a476e29a8d5","block_type":"box","text":"NM0926U-5975843-205/228","page_number":205,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"575843f9-9898-4f69-a6eb-0fa837f2c2c4","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":206,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"3d848b20-73da-4dc6-8f9a-a732907a8b3e","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":206,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"f27ce8b4-e248-4c48-baba-d0080361c0e8","block_type":"box","text":"recently.","page_number":206,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"16dd4622-f127-4159-bde6-588ed230d39f","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":206,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"23901c65-dc68-40a5-9809-bb20f0c6f2f5","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":206,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"adac5222-8dea-484c-9e8c-733d4617d5b1","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":206,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"feaea445-9951-47b5-86e6-12b7d90073cb","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":206,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"45c1c548-b5e4-4b48-9942-4c0b801f4a3c","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":206,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"89e582f9-c020-42ab-bd05-8a2e1f3f24cc","block_type":"box","text":"Director independence","page_number":206,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"4abe709d-fe90-4ea9-89f3-5a1883e4179e","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":206,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"12b13933-45dc-4184-b9da-4a90d0951eee","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":206,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"27bf9ca0-33a8-475c-8aa4-33f98799decb","block_type":"box","text":"6","page_number":206,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"f6a9519e-ad8f-4c99-9161-ffdfcd791e5e","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":206,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"5aef1fff-b9e8-4bbc-936e-29be0a91c17c","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":206,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"cc8748b9-b8b2-4d69-97ff-9805a7e8d0e4","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":206,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"cea1efa0-03c4-48a2-ae30-741ae72618b5","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":206,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"7efb0ed9-96de-41ff-bb60-56644375a061","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":206,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"35ba3717-6729-4c73-a49f-b4a20f9159a2","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"352d1b8a-dd0c-4d52-ad48-da0d88dbbd81","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":206,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"709aa928-ba03-48e3-aca0-d17a923bcf26","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"2049cc47-8a94-47c7-9123-7be166f79449","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":206,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"38e5e492-3a75-46b2-b2aa-d2fd3c90426b","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"e81294f2-b8dc-4874-8b71-bf776eea45f6","block_type":"box","text":"Interlocking directorates","page_number":206,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"03d2cd6a-54e3-483e-b7e7-104f1a01c529","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"9d6fb853-305d-4bd5-bfd4-0fddaa49da93","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":206,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"5cb40e5d-b264-4000-82e5-aab8e6925fab","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":206,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"a8178a29-8afa-49d5-8b2b-a449019e611f","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":206,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"894058ee-f6f0-4a80-9b61-0de0ca9e9301","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":206,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"eb91f522-6215-46bc-9a3d-d641f9674d5e","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":206,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"8a8d7ae2-a4c9-498b-98f2-7fd38f294f18","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":206,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"fc1000ed-e13c-492c-ab61-8c96e7528a89","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":206,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"44300f43-cee6-4232-ba46-0085aa00c668","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":206,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"0147fb54-85fa-46ac-811a-3a3ff7e64bd9","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":206,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"39302154-8bbf-480b-88cc-e434b725a2ec","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":206,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"e38f75e0-b500-4aa6-90c8-ebd8639d95da","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":206,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"064592ce-32c1-4e25-b1d0-da208bcd66de","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":206,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"9b93cd34-12b3-44d6-917f-6e3eaa3c9baf","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":206,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"fef6bbaa-28e2-493f-952d-4077455d003a","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":206,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"43ca459f-e4e0-4e1c-a866-d8630e0f837c","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":206,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"f88322a6-8f0f-4d6c-b01c-c3161e248a58","block_type":"box","text":"Sufficient capacity","page_number":206,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"4b7509bc-7bc1-430d-8a0f-bd8cf889ef97","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":206,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"e89dc943-37a5-4be3-97ba-2346de778269","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":206,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"53c77ecc-3f75-4745-ad8f-23b999e7cf16","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":206,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"e71b293f-2487-455b-b25d-e61ae70ea56e","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":206,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"5a7d3bde-79fa-4e7a-8b28-0715f5518998","block_type":"box","text":"Board composition","page_number":206,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"23700afe-ab49-4001-8f25-28c158072603","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":206,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"f1f1f3c0-d83d-49f7-a8d1-d52a157c8f6c","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":206,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"f73d59f7-9d9b-41b4-9621-1490ff18c256","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":206,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"2ce69c08-e3d8-440f-878b-fcb27b19e10a","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":206,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"93ad6f6b-1931-4c6c-9d86-f42b75dc1ce4","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":206,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"67556052-fffd-4652-8601-4a44f5578704","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":206,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"82fd084b-4fa3-4aff-9bd3-c8f179d4594f","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":206,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"a9660c4c-2d38-4c07-ab07-d085a82e29c5","block_type":"box","text":"6","page_number":206,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"b8a02cee-d6c2-45f5-83e8-00f30e6e3505","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":206,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"718b877e-da42-4953-916d-4c70feb5417d","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":206,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"0d8b3457-9253-4d50-9747-a6e0df3a8c4f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3198eca0-ec84-4598-9f04-6a6f98319fc7","block_type":"box","text":"Global Principles | 6","page_number":206,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"261ee091-3fdd-4208-985a-cd241dc4cf10","block_type":"box","text":"NM0926U-5975843-206/228","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c63c56cb-67bc-4868-bf53-d2af26c1c81d","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":207,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"4864afc3-e8aa-4215-9e8f-0e043036829e","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":207,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"056d5924-d2bc-4f12-8e5c-7df831d295c9","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":207,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"cd80ef1e-2b5e-42fd-83d9-cc0e8c6d179a","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":207,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"edfd2ff1-16fe-4fa6-bfd8-fdff044203da","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":207,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"677c7445-5a36-4642-bded-a95097dcf086","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":207,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"2c2a812b-8cf8-461f-afa4-f2c246a60e1b","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":207,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"ba2b250e-ae73-4113-a3ee-b59b73bc34b9","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":207,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"a4956b6b-cab1-4ea8-b7cd-5e250d27c5f1","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":207,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"23e4bf14-2523-45e3-90df-881a54972370","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":207,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"b07aa12b-c836-4b0b-9b8c-c71ed88ea491","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":207,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"1043a4f0-0720-4332-b599-12106ee3fd05","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":207,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"6fbca6c0-6134-4c2e-a8f0-f30ab8fd1dd7","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":207,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"33f9a1c9-cb21-4417-a566-858f02f4ec5c","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":207,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"f7a593c9-ec11-4a52-9888-ac4d2a3b0803","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":207,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"fa5fbdc0-a08f-4fdf-a181-8be909708bc9","block_type":"box","text":"systems.","page_number":207,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"a69fa7b6-0546-49a7-ba54-aafb3faf9752","block_type":"box","text":"7","page_number":207,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"032a79a2-8478-4116-9d38-8eaa93d30c37","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":207,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"fbc127fa-2f29-4955-b049-15013d729ded","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":207,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"58adc868-17bc-4f89-bbe9-8a7c1dc10d4a","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":207,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"5d92d3c6-1bf1-43b3-9b5f-f1de3b3c2dfa","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":207,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"af161a00-43ee-4adb-b9ab-a618b0b6401e","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":207,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"5cbb9273-deb2-4916-b666-582685fcd52a","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":207,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"8e01a372-a330-4171-abd2-5defaf65f77e","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":207,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"bd0dc3e6-64bf-497f-bdbf-c97637dad301","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":207,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"91fc59bf-bbc2-48b3-bdb2-998a64928cef","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":207,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"9f141fd8-c22d-48a3-ab95-cd56b275efe6","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":207,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"35430a7d-967b-425f-80d4-5316d7e9fd51","block_type":"box","text":"or internal audit function.","page_number":207,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"ab776fa0-8219-43c8-b145-a8e715e28a81","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":207,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"47df49a2-f555-4eba-a6d3-c2e2f1814527","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":207,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"dbb4dbf9-8e4a-46b9-b87e-b4ab98b28a48","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":207,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"47c19c86-9e5e-4ce7-8a1d-da0771a4ebb0","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":207,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"d572b615-293f-4796-aaaf-2c4f097c803f","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":207,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"fb93ec2b-9e8b-4f07-9d1f-f387b594df17","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":207,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"71cc5053-161e-4401-a1b7-0376aa4df178","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":207,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"d2a17dbc-d68b-4889-a3a1-5a02494c38ab","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":207,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"386ec77a-a5de-42ae-afc2-d3b3fb602f36","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":207,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"53bee2a7-7b16-4029-a723-efd3340f7c08","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":207,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"c373b88a-4378-4551-867b-e03d36afbe4e","block_type":"box","text":"risk.","page_number":207,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"995b96b7-1ed4-4e9f-8bdc-af300f3bcf88","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":207,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"9b03a0f5-bc4c-4c1b-bce5-dad24161031a","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":207,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"198bec20-b3aa-4363-9fc9-cce95075841d","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":207,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"a65ed5ad-576f-4c92-9ad7-dc3248652460","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":207,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"29eed086-593e-4976-804b-6393b09b3457","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":207,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"5b69a855-9198-4bd6-80da-8afe2ef94b28","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":207,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"31be33f1-ec54-467b-aede-aadaf490a314","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":207,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"f0479a5d-6a53-4bda-84c4-b46a15d0282b","block_type":"box","text":"7","page_number":207,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"b2f36a0a-72b2-44fb-8337-9de2086155df","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":207,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"12435915-0319-4f46-b0df-07bc9d54a781","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":207,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"eca22cf3-400f-4f86-bab7-afc037c80eeb","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":207,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"17bd0eb8-fa9e-4611-aed5-8258d618d3e2","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":207,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"fedd9396-76d8-4c03-9459-5a5da74fb0b7","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":207,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"2a18cef4-95cf-4074-8815-cfd02d0cf743","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"35b04ff5-e579-4cf9-ba65-4410b946a881","block_type":"box","text":"Global Principles | 7","page_number":207,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"220f7a67-d178-433e-9c03-82998dd8f6bf","block_type":"box","text":"NM0926U-5975843-207/228","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e984a5cd-1f3f-4c88-a5b3-7533e5967220","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":208,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"060f4c50-bbe2-4cbd-8957-1f784d346c3d","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":208,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"fdf8f5e0-8edc-4f07-b80e-0802f6e21037","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":208,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"7dc49e0d-aefa-481b-86ec-9678739df336","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":208,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"18706c85-64c2-4160-99b6-e834bc4eb2e7","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":208,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"d1bce616-eab6-4f04-a358-63365b851806","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":208,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"d8317e8c-11da-407d-9dcc-d670de2d544e","block_type":"box","text":"minimizing costs to shareholders.","page_number":208,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"b3e18041-8050-4176-b9b1-0019c398eb5a","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":208,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"117c249e-5527-48ca-91c1-2d1dbb52a6e5","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":208,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"cd9d9a8a-755a-4b15-9d16-58b19242b09d","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":208,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"80a6a874-f3e6-4977-b2de-ec9365111289","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":208,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"5d8d6064-4fa1-4d11-b76f-bea9f9c20a40","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":208,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"f29fe301-878f-4c81-ab54-1f2f3cef2b9e","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":208,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"df02f7ed-846f-40e2-aad3-322067663981","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":208,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"58c0e884-2eb0-40db-8ea3-b67d4c1088df","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":208,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"d8bb544e-799c-4962-9911-2f2a19a98121","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":208,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"0b6b9bac-9f86-4d39-a960-c2412726d9ed","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":208,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"f4f2f0dc-17f2-495e-86a5-0625dee273b8","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":208,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"e91827c3-ef4e-4e45-93ba-6ebc19ed1664","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":208,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"c4c0bfe2-8714-4a4a-a1b3-0676a0a9b09e","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":208,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"3f29e316-7972-497a-a2c5-8023e7ff0095","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":208,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"3d640a94-2aa1-426b-b914-74ed3bcec8b7","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":208,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"560bfd1e-ec59-4582-8127-a195dde78fb1","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":208,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"15270c6f-e491-40e7-bfbb-6c33b4968b56","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":208,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"97d30055-2752-439e-b205-57c543adb6ca","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":208,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"52e77ebc-50bb-4094-8355-df9cdb5b3050","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":208,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"9c294384-d87e-432f-9160-7dc2b489e04f","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":208,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"5bd60c58-1af0-4b76-a034-776d453ff2ea","block_type":"box","text":"ownership.","page_number":208,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"ffa82660-95e6-483b-80c7-c3b3f08135b4","block_type":"box","text":"8","page_number":208,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"289fc9c2-4f76-443f-91ab-ced2732c5691","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":208,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"21e6b792-9ab5-452e-941e-79b39a3e33fb","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":208,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"f24914ca-14ae-49fc-bb6b-2386322d0eb1","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":208,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"01024bf6-5eaf-4ada-b0e8-37c7116b759e","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":208,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"77e0860c-f19d-4a00-b1ef-22131482bcc8","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":208,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"bf59d345-2995-4b4c-ba77-3b2e31fe9aaa","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":208,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"1aa25056-7e0d-4149-b388-1b45870caf0c","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":208,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"6820a15a-a129-47a4-aa44-0315d8d74edf","block_type":"box","text":"results over a period of years.","page_number":208,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"fc907850-68a8-4043-980f-325dcf01575c","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":208,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"20d06e2d-8611-4824-b59c-23db219b1c8f","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":208,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"f88111fd-5032-466a-ac7b-2605415d20e7","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":208,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"91188034-47e8-4d39-afbb-d579954a1b8b","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":208,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"8b8e472d-a17c-4a96-b4aa-11794788f63a","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":208,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"6fc4e1e9-b5c6-4598-8607-a49e759e0d68","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":208,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"5d0512de-287d-4467-ad97-20f40161b579","block_type":"box","text":"executive compensation strategies.","page_number":208,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"3035e42a-1b72-4e8e-b202-913f7f04a6db","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":208,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"70aaaecd-7f70-4c5a-b7e6-b332c66023cc","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":208,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"2267aa99-7b4f-4c28-8a81-a881d04d015e","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":208,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"9a831953-e6d1-473c-9f54-c233e959fcef","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":208,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"0574b3b6-7ca8-4674-8ade-523359343840","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":208,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"91ff3edc-8d72-4dc7-9f0d-d746b7c425e1","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":208,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"f7d9df0f-3449-49bb-aae9-acc0fc2d820a","block_type":"box","text":"8","page_number":208,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"fb95752c-b22d-4103-b049-a13329dfe324","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":208,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"f770272e-0e52-4b35-8e8e-44c4a9c6db37","block_type":"box","text":"different markets.","page_number":208,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"903093a1-98b3-4b59-b847-6856eb11e091","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0bc65e9e-31cf-4bf2-9225-be0535a3d08d","block_type":"box","text":"Global Principles | 8","page_number":208,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"61b204a6-1c54-44aa-b0f9-5f557c10a1e6","block_type":"box","text":"NM0926U-5975843-208/228","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6868205b-279d-4b27-a9d8-ba66f52c7609","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":209,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"4ee3d561-b2b2-45bc-9136-02719de9c7cb","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":209,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"acdb3df3-f283-44ec-a617-4c596e39aad1","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":209,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"fca0af4a-e5b5-4658-bb34-4fbf934cff7e","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":209,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"d29698c6-7b59-496f-9edb-3c39161dd911","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":209,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"1886cf13-0c57-4886-9870-a466e64b1021","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":209,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"07a3ac78-1570-4c6c-a5c5-f391bf27b639","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":209,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"8c398634-38a8-4daa-9057-f12f36ad781e","block_type":"box","text":"whom they are charged with overseeing.","page_number":209,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"9a5d24dc-4a50-415d-925d-b0d5c173ba52","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":209,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"aaa2b54d-675a-4991-9617-b08bd90d3224","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":209,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"ebbd6052-6305-4c09-8626-68017e2729ee","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":209,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"0908d79e-124b-4c3a-a40c-d1e3752d376c","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":209,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"0394c0fd-03a7-46e9-b708-32de3bb6decf","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":209,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"9c99fa05-aea9-4c87-9f36-28bb54ff19e3","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":209,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"f8ab17fa-45d6-4c7e-87d9-561390c6d227","block_type":"box","text":"structures.","page_number":209,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"c363acba-7b14-493d-9638-014759f77d1d","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":209,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"5f52f4c1-1b11-4439-8eda-da8e25d7cd26","block_type":"box","text":"Corporate form","page_number":209,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"7721aff0-344d-4e18-b8d9-bd6832a580f9","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":209,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"1b3453e3-7397-4d72-8ee8-eda17890cb18","block_type":"box","text":"the company’s purpose and business model.","page_number":209,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"763143f8-a961-4ec3-b683-a761dcae463c","block_type":"box","text":"9","page_number":209,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"0e5b464a-1f62-4ba8-8ea6-78e951470e63","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":209,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"0d6ddc6e-ded1-4abb-a699-2963f9cc0a65","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":209,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"3de598a4-ac3a-458c-8a95-3d682ae50abb","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":209,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"e19f9c9e-9b5c-4c82-8c57-0e96cbfc164b","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":209,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"0d7297a5-7ea7-4385-bb1d-b7944020f884","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":209,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"74a635a1-4e45-4b26-afee-65a9f02294b9","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":209,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"87436273-036d-41f9-bacb-b5092ca23016","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":209,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"f6ab4f68-8b60-4a6c-80d8-70491eae0fe8","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":209,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"096e31dc-36d2-4cee-bd5a-94da6b9822b3","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":209,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"a0672d81-f769-4747-b9d3-faae20113a8e","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":209,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"28dcc965-4ac1-497d-af5a-a41bf4ae7c16","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":209,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"51ee6889-7506-42c8-9eef-2453744b9d8d","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":209,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"5ea4dad2-4a20-4ff9-be59-6806f0fcd248","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":209,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"320190f9-e69b-425c-8f35-fadf33970484","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":209,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"06936011-5ec0-4460-8f80-e12dd34d7f4e","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":209,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"eb004277-9121-41ff-8bb0-a729b953e055","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":209,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"1500cffc-997c-4024-af0b-0351537dd94c","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":209,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"dd6596e0-790b-4e98-9a3a-582c4bbe7f2c","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":209,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"27971fbd-742a-466c-a66c-48a000d37002","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":209,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"33754765-fe4f-434c-b779-0aec0ff22d50","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":209,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"c9fbd03a-8653-4eea-9a21-c17ca3ec7a29","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":209,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"0c6b9756-9887-4d9a-9026-cb1627baa2a9","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":209,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"198f36ac-9c6e-4bfe-a8d4-903c84042de0","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":209,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"c237d27e-15cb-4b6b-a2f5-066c82463bef","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":209,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"34c03f5d-04e6-4d4e-8644-8d86c94a885f","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":209,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"455b872d-c0e0-4818-b292-36aae4516533","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":209,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"f9cbb77f-130c-4106-9f09-5308142af064","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":209,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"65e7dbf3-9f5e-46d2-b531-5f2a12d9ea44","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":209,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"ab834abb-7f3e-4493-abe9-9452d0c0c395","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":209,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"4a8b7bbd-fb25-4976-9309-68316abc33b6","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":209,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"1f580899-dc29-4f84-be10-9a46bd030192","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":209,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"2f6d31ad-17b2-48f8-b5e4-e7a14c4a7676","block_type":"box","text":"9","page_number":209,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"48f39d62-68f8-41d6-b743-ae14876f3afa","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":209,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"b2ff90c5-8728-49ba-817d-ffd2603b083e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b0030754-f991-40fa-a6c1-02c52d107581","block_type":"box","text":"Global Principles | 9","page_number":209,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"c44d1a53-749e-4240-bd76-8536af177743","block_type":"box","text":"NM0926U-5975843-209/228","page_number":209,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"afef0fe2-2429-4ab5-bd6e-61d04556546d","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":210,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"edcc841f-0fc0-4354-b3dd-cbe0cd5f76d8","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":210,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"af3ffe55-b5a3-43c9-a2f0-2ab5f72d0f53","block_type":"box","text":"long-term financial interests.","page_number":210,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"dab390c1-654c-4097-8790-ffbe9c97410e","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":210,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"869360e9-af79-4b94-9cfa-2d21359dbdeb","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":210,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"4d262659-c195-4e1d-9955-56f41accfa53","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":210,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"2dbfcdeb-7409-4e71-9e9e-e91c1800b469","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":210,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"b1e55fb3-d341-4849-8ab8-f9c7979c5916","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":210,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"b934ba14-146f-4d63-ab54-78c54a0d66db","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":210,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"acfddc2e-8fb4-4dcb-ad4d-48ee703b68ff","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":210,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"ab905f54-1019-4a45-8497-e467c8177b38","block_type":"box","text":"term financial value creation.","page_number":210,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"a7674252-fd04-46ac-b32a-f3410ee06638","block_type":"box","text":"10","page_number":210,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"e0a5c2c1-4741-4d39-bf2c-dc65d918b9c1","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":210,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"eb1a02a2-33fd-450d-bc75-6e716514f931","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":210,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"469ad5da-e7f4-4ad7-9b18-0e347a529230","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":210,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"8221d0d3-1efa-4f47-8999-f902e3957618","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":210,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"96bc2ba5-d5f5-4b88-8d83-74d18d5e9d19","block_type":"box","text":"industry-specific metrics.","page_number":210,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"299f313e-913a-46b1-8361-128c9a00e2a5","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":210,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"dd50427b-cfc1-4b3c-ae41-91f78f1c94ba","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":210,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"67a8e793-aefd-48f7-8123-82c106537e3f","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":210,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"912a5082-867f-4470-a055-41b7cb0c3f4d","block_type":"box","text":"11","page_number":210,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"1c1a8d72-06bd-47e5-9f36-41a60f12723b","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":210,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"85b32fd1-642b-4bbf-b3f5-4f875041887f","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":210,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"13e568a7-6f80-4d71-ac34-affa3306f94f","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":210,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"cc661cb9-1810-4c99-b20c-a0cfd955c105","block_type":"box","text":"specific.","page_number":210,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"3406d1d7-3528-48bd-80e1-f79b38ceb28e","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":210,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"4894766e-d4ea-469b-975d-53889ac37506","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":210,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"a175ed83-b705-439b-843e-a8757472c94e","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":210,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"9c983605-8194-4135-b2a8-c9f2aae5088a","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":210,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"25b79b84-47c1-4de1-8f58-25cc0b1ed234","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":210,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"af3ebe65-69c8-4b40-8bac-d054a64c73e6","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":210,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"351791f5-4df7-4d4c-af95-8a702c906823","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":210,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"69145899-a54d-4cb3-a746-89b9c4b5bb2f","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":210,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"d63f9b0d-9294-4a53-b94a-97a43bd9f16c","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":210,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"0896db72-342e-4245-b213-897a49333ce9","block_type":"box","text":"10","page_number":210,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"8fa78ece-20a1-4aee-8f66-0a8c214cdb1e","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":210,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"63690680-c327-4bdf-a18a-e1c18b5f1b8c","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":210,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"823874e5-4216-410a-a8fc-67c3c809bfe6","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. 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The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":210,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"894d9009-8106-4b5c-9a13-cbea3f12eb3d","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":210,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"e6ec4983-1dfd-4865-bc6b-30a7a99cea85","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":210,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"c5b092e8-bdb7-456e-a695-46448068f47e","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":210,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"c9b86d53-3f0b-46ba-8a98-29634f93157e","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":210,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"af1b1280-e066-4173-8ef3-a530aa4db424","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e349195b-b6f3-4f70-a7c6-e20d4879be8e","block_type":"box","text":"Global Principles | 10","page_number":210,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"c6f76ff1-279f-4c17-a667-47ab76fe3b34","block_type":"box","text":"NM0926U-5975843-210/228","page_number":210,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"20fd91a9-306e-475d-b268-d1b985b6ceab","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":211,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"24e5066b-82e7-4b70-927a-b7b2803b7531","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":211,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"04dc265b-d2e8-4f15-9610-6f38753795bb","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":211,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"1d00ecc0-f0c2-4fde-873e-976263f5d291","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":211,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"d1bb156a-0970-46df-a003-fb9692a78a1e","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":211,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"5d6f673c-cbf1-4b1d-8db0-0cd9b4a40dfd","block_type":"box","text":"12, 13","page_number":211,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"baf8dbde-b9b2-4983-ba90-15c51e58c1fe","block_type":"box","text":"From company disclosures and","page_number":211,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"6e4bf323-0e94-4120-b893-36f1473408ce","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":211,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"c12b1190-f15d-4474-a6f7-1758dd47e60f","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":211,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"deba1025-04fa-4c06-8264-0b6e04c399f4","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":211,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"1e8e6b88-ae8a-4a0b-9474-99688c4eed03","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":211,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"e21872c8-a8e3-4de1-98af-f67f5d06e415","block_type":"box","text":"viewed as best practice in the market.","page_number":211,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"134a82a9-44b3-4b17-ae0a-a6c61601869c","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":211,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"9de2dab7-378b-46fe-9fb1-edc97539746b","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":211,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"4e82f82d-6417-4c75-8c5c-b90fd5284d4a","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":211,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"9f50e77a-b6c7-40de-ada7-3f2d64afc2a3","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":211,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"20e8259b-7008-4448-88de-d7873a879c7a","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":211,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"c5adc347-1fc3-4099-ae8d-7014426f26ad","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":211,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"33f26a30-9cb7-47cd-b5a3-6b0edfbcf943","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":211,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"83256a9c-3cb8-4cf0-a3b6-877b35c07b05","block_type":"box","text":"interests of their investors.","page_number":211,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"66459f34-84fc-4030-8817-83c779569364","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":211,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"d27f4483-1f7d-4d36-8492-8aeaeec0db27","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":211,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"f923759c-937f-4b65-8e8d-de8b7435f451","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":211,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"ddfa07e3-8205-4e40-ae82-f2a364c7e0df","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":211,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"46678c5e-8101-4c18-8259-8b2df4352ae5","block_type":"box","text":"good-faith basis as methodology develops.","page_number":211,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"3712e131-c14a-4bb8-bcee-18773c1ea1e8","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":211,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"8744890f-8b6d-4c39-a4af-918709231acb","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":211,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"ca060902-925e-4bfe-afe9-7ed1fadbf627","block_type":"box","text":"generate long-term financial returns.","page_number":211,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"92972734-bac6-474d-ac28-1fb485cfc928","block_type":"box","text":"14","page_number":211,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"36551f31-256f-4a46-9454-3ca3e3d46a78","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":211,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"d4dd95f8-8a51-427b-9351-51ecc59001ff","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":211,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"5a3cf5ea-3896-4f4d-9620-0cf55c3c7d64","block_type":"box","text":"15","page_number":211,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"ceeeda67-cbbf-4615-bc71-bc8b01d086dd","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":211,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"1326a679-0f4e-4ac7-b8b4-c202f7999540","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":211,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"3879a06b-917a-450d-83b2-e7091f9a7d95","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":211,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"02e4376a-a6c0-4547-94af-4757d3b5d606","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":211,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"eec9950c-4e29-437d-ba10-b126d6df97cb","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":211,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"237aa8a5-9b89-4e81-b430-f6c369da29fc","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":211,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"3b0c80aa-6971-42e3-9c1b-0d56b4c97a01","block_type":"box","text":"12","page_number":211,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"b120c13c-18aa-417e-be2d-6f9427ed27cc","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":211,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"5f24a886-5c7a-4014-9159-95cf41dc56f3","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":211,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"6f3df6f2-0f97-4400-9f2e-bb9259492e10","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":211,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"3b26022d-8e25-45fd-9f05-e4052bda7eee","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":211,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"f6277d1c-9dfd-4d96-9cfb-ed96e4d94134","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":211,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"2b3a7863-8745-4e13-82be-ae4c40edb83a","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":211,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"a7e9630e-7204-4c08-aa8a-d54451f35f30","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":211,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"a11dc40f-a547-4ee0-bd79-601fa9819dab","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":211,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"95989a84-2377-4cd4-bb99-adaeb819a1b6","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":211,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"45f43732-99f0-468b-886a-4823587616d6","block_type":"box","text":"13","page_number":211,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"802dc61f-009b-4955-a6a0-f79c6d87d439","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":211,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"ce5f8b66-8080-48db-b9ef-132e60c83f00","block_type":"box","text":"2025.","page_number":211,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"0506d9ef-8592-4ecd-99b1-22f339d987da","block_type":"box","text":"14","page_number":211,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"bd4fc844-fc0e-4a1e-86a9-658ec22d43d8","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":211,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"d0ca4abc-a2a4-4d3c-a143-46e91c5d85eb","block_type":"box","text":"2025.","page_number":211,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"9bcf23fb-15a0-4fa5-a41c-ef29b89d13d8","block_type":"box","text":"15","page_number":211,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"70b232bd-a122-42b7-9c3b-44f5737a3a16","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":211,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"aa7129a0-a59c-4647-b810-ecf8e760d0fd","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":211,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"6de4b0ce-0260-459c-ae5a-2c68b53403d7","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":211,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"b32f76a9-2aaa-4f9a-a66f-97ad3766507c","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":211,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"de39636d-f4ee-4d3e-a535-e7c3ea6a3be3","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":211,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"bc09f433-930c-4910-bf8e-3ed03ef69e97","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1de6ce19-a0d6-4586-97f0-13d47f073a57","block_type":"box","text":"Global Principles | 11","page_number":211,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"2adb9231-6ec6-42d4-a1e4-0a18e9bf1434","block_type":"box","text":"NM0926U-5975843-211/228","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e33be884-4c1c-49df-bb78-e2ae9b3a61ab","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":212,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"23df08ed-fd36-406d-a432-a112d6997665","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":212,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"94b761b4-7473-4c60-b8de-a442c2356f0c","block_type":"box","text":"16","page_number":212,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"10307f59-67d4-4d10-b193-e86d8cef88be","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":212,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"236cba1b-42f2-47fc-85ec-7b9d05146b8c","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":212,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"20e3544c-3723-4cac-be57-603fc725da7d","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":212,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"d0bd9b10-266a-4e59-966c-b997bd31353d","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":212,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"d2cb15db-cbb3-4324-b849-0110be77cb78","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":212,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"ec786706-5d0d-4096-b242-ac5ea23ae295","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":212,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"9295eb09-8947-496b-a7c0-345679e3830a","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":212,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"fe464849-23cf-46e6-bf35-19a52bf7797e","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":212,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"cb1a41b7-27fe-4782-a1ee-63c2bf552563","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":212,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"9da9eead-7078-4248-917b-0055eb11a7d4","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":212,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"837f71bc-9490-4734-86ce-57ec9545958e","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":212,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"e89e0df9-ce89-41e8-81fc-59018171c914","block_type":"box","text":"impacts.","page_number":212,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"88640864-a3b6-405c-a702-6f3181e1a801","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":212,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"6a13dd2f-8275-4c1b-89d1-0470d51b7f22","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":212,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"d2fd2b2c-258b-4f2a-ab55-457d919bc2d5","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":212,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"036c71f1-a81e-42bb-8c60-cd9a298c3c10","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":212,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"b7af6200-ac51-448b-9260-a8ef4b8d2f3f","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":212,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"d939c52d-80a0-48f0-9468-68899ba4aa3c","block_type":"box","text":"clients at the global and regional level.","page_number":212,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"8ecee01b-249d-4a56-98bb-dbb2da7b67aa","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":212,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"f219c747-83d2-4854-8277-ebbecf08498c","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":212,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"1331844e-53d8-417e-98e2-86fbff48b2bc","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":212,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"6b365734-c540-4c47-847f-eee2e5d46efa","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":212,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"2574e64d-0894-4961-8aa4-4f4e41a515a5","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":212,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"95c30f5f-1a06-4368-8406-4e44d88a9810","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":212,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"59d05151-ef45-4497-bcb0-ff12f6c058e1","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":212,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"72912dfe-6191-4ca3-9d90-a4133269f816","block_type":"box","text":"are independent from the investment stewardship function.","page_number":212,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"da9b8987-ddb4-43c8-8df0-bd686c93ae76","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":212,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"7386cdd2-7c63-4800-8952-8c01ba9d283a","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":212,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"5095ae5c-b282-4b85-8176-6b570c86ebce","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":212,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"cb53f439-5c30-40ce-af09-d3687d1228d0","block_type":"box","text":"VOTE EXECUTION","page_number":212,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"b7439db9-58d7-4672-ac12-7fa31c8e32a9","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":212,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"a5ac5477-505e-472f-b915-3ff16488c1ba","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":212,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"885595dc-da81-4ddf-899f-a0857a98f075","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":212,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"ce892427-b7a5-4a3e-906f-babed15c99b1","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":212,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"c57aa846-a584-4edd-8fcd-90106d9b1161","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":212,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"98de3e95-0c90-4f3c-8f36-6182878fd5ef","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":212,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"b22abeb3-4f64-4c44-b831-4991c4a89a60","block_type":"box","text":"management policies and procedures,” below).","page_number":212,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"5c3cb912-2244-43d8-b409-e740695c5148","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":212,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"61d60cc5-bc75-4528-8f24-a2830d699659","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":212,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"e835dd33-29e9-4dd2-ae2c-558985564d90","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":212,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"4e92fd6a-2f94-470e-b978-5e100a53e231","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":212,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"a161acfe-abbe-4c9a-9896-55320eb0361d","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":212,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"dfcb9d3d-9b92-4557-8834-3e100448155d","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":212,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"8bb99cb0-606a-473e-8fd1-b68ca88d26a9","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":212,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"13088fba-9080-4175-8862-ec664d6181dc","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":212,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"6d966122-8b9c-4944-81e4-7bd5528322e6","block_type":"box","text":"16","page_number":212,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"d5e9552f-7915-49b9-bd96-7ed684c2df04","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":212,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"836e4865-6909-43c5-adaf-88c50741d69d","block_type":"box","text":"December 2025.","page_number":212,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"470ad708-14a1-4567-9d55-94a5040ae574","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"203699bd-5a6f-4087-867a-90bb7933500e","block_type":"box","text":"Global Principles | 12","page_number":212,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"ebf59f7a-f111-4f1a-912d-818fa2c7766c","block_type":"box","text":"NM0926U-5975843-212/228","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"af2988e3-ec00-4550-bd3b-c2949764699d","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":213,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"e2d5e209-ec32-4141-8bc5-976b3d20b9eb","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":213,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"d117bb9a-3a76-4fcd-96e7-d7e5e8b3fb28","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":213,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"7f05cba0-3cdd-4cff-9523-a861358deea6","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":213,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"701c0fc9-bce2-4f9b-9464-50b346a952c5","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":213,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"a3f44046-8cf7-4b3b-8d64-65a5e19d8caf","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":213,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"581292e5-68a4-40ac-8a77-da73b73305c4","block_type":"box","text":"enterprise-level vendor management activities.","page_number":213,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"fd59fa83-5648-4d0d-96db-66e98008b086","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":213,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"82463c42-72c3-45ec-b0be-6a628943b86d","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":213,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"29cc82a9-ccc8-4396-bf91-32ea68325acb","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":213,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"8280a769-3c5a-41a2-bee8-7a97772bc669","block_type":"box","text":"BlackRock employees.","page_number":213,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"3e1ffa92-24b7-4c24-af77-d532618ba9ed","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":213,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"65ded9ec-38ec-475f-a09d-6709b2f78bc2","block_type":"box","text":"SECURITIES LENDING","page_number":213,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"b6eddfb6-ab59-49ad-b855-3a8cab95410d","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":213,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"4fdcf910-8ea3-4560-b137-a17a8ef99c8b","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":213,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"528ea1df-e891-40bc-bf83-237b76328785","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":213,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"35741722-0ba0-434b-a7b8-346620f55d88","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":213,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"5393c56e-2721-4f67-bc5a-7fa7718f0d2a","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":213,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"5f54b691-0a71-457c-bccc-c7e51eb83d5f","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":213,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"5f6a5bfb-3c08-4df2-853d-42ada6cbd880","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":213,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"07bc8164-e07e-45b1-887e-0f95b9e3d322","block_type":"box","text":"in helping them achieve their investment goals. 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Under the Guidelines, the dedicated team","page_number":220,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"5270f5ea-a880-4adc-990b-bf4bc27a1a4b","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":220,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"a5bd3d7a-ee78-4b08-8d88-7e591a49c1bc","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":220,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"47d9d934-63b1-4011-9694-f82f36f9a6f5","block_type":"box","text":"Voting approach under the Guidelines","page_number":220,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"9d2f4e0c-1883-4519-a790-28fd01b092b9","block_type":"box","text":"12","page_number":220,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"9793e3ba-ed98-4f76-8064-9d87b0e8e47d","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":220,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"a7d8455a-d969-4572-99b3-532970159330","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":220,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"194de226-7239-4ee8-a6ec-39ae41309839","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":220,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"2d46ca6c-5b9e-4fe3-91b8-2bcf11317e54","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":220,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"eb6c01f2-5a62-417e-bb09-4960702d6b86","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":220,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"1f8f109f-8fba-4dd2-9a4d-ac5169f41a73","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":220,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"492b9907-3a23-4b0c-9b5d-345169507377","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":220,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"dfc8c409-01aa-452c-8683-163bbc255b05","block_type":"box","text":"Corporate Disclosures","page_number":220,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"7f57cdf2-7053-43a7-92ff-e02197bf7616","block_type":"box","text":"13","page_number":220,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"9576aa3a-f829-43bf-90fc-0cb0fa1d194e","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":220,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"d3142d1d-3f3d-4e2c-8c33-7cd37e66dc67","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":220,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"a6583a15-4fc5-4937-990f-fb075df12da1","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":220,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"9fa081dc-e075-4298-9b82-0f7c24c5070a","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":220,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"310c8eab-0006-4cb5-bc62-cfa678e7ee5c","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":220,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"c6065d19-cc27-43a4-8a04-916839d661c1","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":220,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"79086134-9c8c-45bb-b5c7-8b5ca8657763","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":220,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"3e2b0122-e399-4bf9-8550-f1a40ed0931e","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":220,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"7bb7befa-56ee-4c7f-9197-56ea5ade45bd","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":220,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"6c02cc4c-5079-4471-ab22-95aaf49ad8b9","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":220,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"c2101e39-3845-4af2-a73e-c54df1c21644","block_type":"box","text":"14, 15","page_number":220,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"b71212a1-48c9-4828-ad45-9b166617886b","block_type":"box","text":"IFRS","page_number":220,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"4513f0fa-76e9-47c4-abac-3fc98a257ccf","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":220,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"adf0e49a-ba73-4b85-9b02-1c778e595f67","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":220,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"2af661ff-3b73-4dba-ae2e-21fcedd52c84","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":220,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"92a3da0e-e599-4b87-a9f4-e7104a67804c","block_type":"box","text":"and assurance standards are developed.","page_number":220,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"5b84d645-c4db-4718-b154-9917fb3ecc45","block_type":"box","text":"12","page_number":220,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"edb2f331-ea58-4bcf-91c0-e79d14155ec4","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":220,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"701e02e1-204f-4ebd-980e-161f00794081","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":220,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"084197a2-c787-461a-9bb1-c249e9f9c34d","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":220,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"845f9b11-7915-477a-a18b-ce58dace2e6c","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":220,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"36015024-b767-4741-9e8c-4a5f494068ba","block_type":"box","text":"13","page_number":220,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"01e22d97-80b5-4123-8bf9-9d4088fc5502","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":220,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"baab5fec-6680-4f13-9a30-723197748ece","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":220,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"5f130bc7-5dfe-4b60-86c9-fe35b4c151bb","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":220,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"f4dd7770-8512-4511-947d-ae41bde5968b","block_type":"box","text":"14","page_number":220,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"3331e888-87b9-477e-9742-e8e962fd271d","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":220,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"ee3d64c7-f708-4209-af7f-b5a2764718f4","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":220,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"40074908-7e11-4418-a488-90b2b9ed9752","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":220,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"22cdd25b-91a4-43cc-a032-42dcdf357ef1","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":220,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"cf0e53c9-81ab-4f94-bf5a-2173e13e73ac","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":220,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"85cce3c3-780a-4fc9-aa14-7150a52f7c15","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":220,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"0e090e82-3b0f-4922-a36d-08fdefe41a72","block_type":"box","text":"15","page_number":220,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"1d9a130c-c8e3-4ffa-8489-034b70b9325c","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":220,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"47812eff-bcdb-46f2-b2bd-42ae8472d9dd","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":220,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"cbaf613c-6868-4d98-930b-8a143662967c","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":220,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"1897732c-ad9a-4766-a446-579dbfa6ef6b","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":220,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"38225f35-61ee-4a9d-911c-d72c72a7c040","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":220,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"078ec015-2e9d-4fc0-a20f-15d832775188","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"87798016-55a2-4a49-b582-140ad73e8b2c","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":220,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"6b5f9417-2726-4321-a3a1-f38c9198c361","block_type":"box","text":"NM0926U-5975843-220/228","page_number":220,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d2b760c4-f517-4360-ba41-092875f759e3","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":221,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"b7bf37c0-c3bc-4e70-8533-36d6479cef54","block_type":"box","text":"16, 17","page_number":221,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"1921a596-eaf5-46c6-94e4-a75382e46deb","block_type":"box","text":"In addition, the dedicated team looks to","page_number":221,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"411482d9-2fd2-4795-8a9c-d897939f6490","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":221,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"4fa89bb2-a158-4267-b174-ee743fe7c493","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":221,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"c2f97234-3c06-453f-a6c8-a3736887e02f","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":221,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"39e45dd0-c46d-4ab0-b4d3-e519520c8ae8","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":221,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"2414d22b-7854-4c98-85be-79df2057c8dd","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":221,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"19c55f97-3abd-4b6f-9e90-0d78a58c0f22","block_type":"box","text":"18","page_number":221,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"65e86c45-5f95-4fd4-acbe-0c91ebb43653","block_type":"box","text":"However,","page_number":221,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"e8a682fe-b712-40d2-8aa9-d7b6a2a0442b","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":221,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"f13e889c-c610-47c7-a8af-7e8accb12335","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":221,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"671d9586-a654-48f9-9e65-4a373a60af11","block_type":"box","text":"their decarbonization targets. 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This may include","page_number":221,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"f14e2fd4-e8d8-4bb3-be4c-08169ee452ff","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":221,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"d24ca74c-9eb9-4df8-a8e9-c8c3890f81db","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":221,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"0397ce04-da39-4431-88de-5b3b8515186b","block_type":"box","text":"transition risks.","page_number":221,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"699497b0-f808-40f4-8a14-a10eb5bd7a25","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":221,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"ae90a872-f7d6-4232-90b0-329501af6df8","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":221,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"6ea30e1f-86b3-48ab-97f1-996ab057c8f8","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":221,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"40d51143-6ef7-4ceb-a52d-f00d3a906269","block_type":"box","text":"Transition plans","page_number":221,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"751648ed-796a-4afb-be59-9691c103e8a8","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":221,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"111da1b9-5144-4022-9302-81671f71a665","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":221,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"83cb6a00-792c-4a88-9940-3a6984bb816c","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":221,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"15494c97-7961-4c19-86cf-8a3a8d795f5b","block_type":"box","text":"(see Appendix 1).","page_number":221,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"54b318ea-92c5-4b9a-bca0-4028315b8fc6","block_type":"box","text":"19","page_number":221,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"07207263-fea9-4792-a075-a5cf5305d9fc","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":221,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"5d38a0ad-dc43-42e5-8c53-06e4dfc68352","block_type":"box","text":"transition plans.","page_number":221,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"b600f55a-7a13-42bb-b423-6d7ce0a3cccf","block_type":"box","text":"20","page_number":221,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"2404f93c-cdbc-4fde-8d3a-30a75c10a48f","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":221,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"9be9b39a-9aa1-446f-a90c-cdddd39d08e2","block_type":"box","text":"reporting approaches.","page_number":221,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"85876166-d419-44f2-823c-15a3687de743","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":221,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"1267a524-41b4-4d19-acff-4a49e5737f51","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":221,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"0a563db7-0497-430e-a077-d9119d9f937a","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":221,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"5e4b4e02-abcf-4257-9415-bae4d2bd10ed","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":221,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"a9db8ddf-730e-4a0b-9853-ea2ffa81d9dd","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":221,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"7f3224d8-7d03-4476-97e3-5d20cbc07b80","block_type":"box","text":"informed voting decisions.","page_number":221,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"74fb1f71-42ce-4da4-ad4a-63a23058806d","block_type":"box","text":"16","page_number":221,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"d28c6391-48b3-44df-b3f4-b88a9df46a48","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":221,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"0eeaf782-c7dd-40d1-a266-df8d91860617","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":221,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"e5d28bd8-3275-43cb-8c94-f3ac28358c3a","block_type":"box","text":"December 2025.","page_number":221,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"d79c7a08-b811-4ecf-a60f-1aa88ff6fa4e","block_type":"box","text":"17","page_number":221,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"9341f68f-af4d-4ded-a092-a82db449155a","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":221,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"aa0214c8-41f9-4d0e-9f8c-78fcec02dc60","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":221,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"3ab16ddc-9cec-4b8b-ae74-6d661c9365b5","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":221,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"19462444-51b8-4aea-8bf2-a098690838b0","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":221,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"9d0ce8d0-9295-42e6-be4c-a8e9bd8a0515","block_type":"box","text":"18","page_number":221,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"e11e8b64-7333-4fb5-ad52-a2e68cdf363a","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":221,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"8443eafb-2ac0-4c9d-85d8-5ecaf7fb22df","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":221,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"1850f912-0784-4faf-84ff-0583c1cc479d","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":221,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"e88fc020-b729-4acc-851f-aebe4c1269a8","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":221,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"2d8b1c4b-c7ca-45d2-bb67-1d285f3bc021","block_type":"box","text":"material to their business models.","page_number":221,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"3c9a5932-54a5-4daa-80cc-b821edc200ec","block_type":"box","text":"19","page_number":221,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"f7472571-da9f-43ef-a1a5-7862646aafe8","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":221,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"571c29af-ad17-45a8-837b-12400073209b","block_type":"box","text":"December 2025.","page_number":221,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"10d1ab35-f04d-45ce-898a-e70cba1229b5","block_type":"box","text":"20","page_number":221,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"fab3b167-22fb-4f46-9975-77d17d20421e","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":221,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"5ccfe01c-26d1-4e3b-a01a-d3c98e925c12","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":221,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"bf95ae3b-9b3b-4d1e-abd3-ffc63561a900","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":221,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"8cbe0c58-07c4-4145-b327-579333a93a42","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":221,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"71eb6bfc-3058-4732-a202-e14df163eff1","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":221,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"bf9942cf-6906-4d54-bfa6-5c6bedd3405e","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":222,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"449e36c6-f3d4-4226-9622-c1338ab08680","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":222,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"3a81d627-202c-42b8-a291-aa8ef137c5df","block_type":"box","text":"with the different constituents in their value chain.","page_number":222,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"554a1187-7065-416f-8a66-8ab79af565f4","block_type":"box","text":"21","page_number":222,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"4b351d2d-6167-44f2-bc27-900e8219374b","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"62b5df52-f559-4abf-be8e-fac586293a33","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":222,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"9cc91c88-7fcf-45ca-b9c4-073f79a2bacb","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":222,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"e9187fda-58fb-4789-9631-297e1452e444","block_type":"box","text":"22","page_number":222,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"2e730ab9-d401-4b0b-9878-cb25ffb81f72","block_type":"box","text":"The dedicated team looks for","page_number":222,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"30952ace-e406-4d95-aaff-7b265e155e0e","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":222,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"f540b346-6e85-40a1-bb4f-d1e4eca73a87","block_type":"box","text":"related to the low-carbon transition.","page_number":222,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"5e8c4501-60db-450f-a0c1-edcedb6db19f","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":222,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"a5a5a62b-735d-428a-b790-6b05d13d2bb1","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":222,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"1f883135-3cd5-40bf-846c-0b987ee77320","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":222,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"427c9875-a4d1-4452-b85a-1c738d2279ad","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":222,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"fbc96833-656d-4e85-b49d-08661dc6ca13","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":222,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"2e11a19f-67e2-4f6e-a032-42c1af9a5985","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":222,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"207349e9-20ee-460b-95fe-51bb407e9817","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":222,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"b12b265c-07a9-488d-94bf-f943165b3dcb","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The Guidelines consider these","page_number":223,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"6fc5740a-75ff-424f-8d37-3b690b1ee518","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":223,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"a92fca14-95b8-4784-bf46-72723d889bde","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":223,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"5611dc2e-542c-4046-b2e7-b8342d7af94f","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":223,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"d1b1a68a-2b34-4215-9347-3d8297bd2752","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":223,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"44b33dbd-8e80-4e39-bc46-6cf07e929212","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":223,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"400283ba-8ab5-438c-b1ed-8ddadaba66ac","block_type":"box","text":"transition plan and targets.","page_number":223,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"3208ebbc-bb1b-43a1-b4f6-5d826d4b6846","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":223,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"8c86c124-325e-44ab-bb20-52a9bd0414e3","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":223,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"d7691eae-2b82-4519-aa08-94a978e84cd3","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":223,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"559608bd-63dc-4776-879c-bf2246e06786","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":223,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"4973a496-e5cf-4af5-a68b-364b143d08e5","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":223,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"6903dd19-580f-4d15-b2df-bdc9775f6caf","block_type":"box","text":"company’s individual circumstances. When the dedicated team votes in support of a proposal, it is not necessarily","page_number":223,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"8f816a67-2677-4d57-8ba3-4abf208af311","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or supporting statement of the proponent.","page_number":223,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"3a48e4ee-f028-4849-b0a4-68525d8275d5","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":223,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"317d8117-09ae-4030-b933-5e9a034e7d7a","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":223,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"f6529fb8-3196-4ae0-8302-9759d48a2b8a","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":223,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"1ae41e86-7dcd-4964-bf9a-dd3cea54e1b1","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":223,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"0ca3cf8e-6a38-40c8-ba58-b51c78dd4018","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"a9433596-8cb2-42e4-9beb-7c76713a7009","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":223,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"a9efd9ed-6c17-4cc2-b638-72f4a0da5923","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":223,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"0fc262a4-7111-4f2d-91ec-7ae1e81bce62","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"2213bd41-7d1c-4823-ae34-2e880c29ea04","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":223,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"213db91e-9d1e-473c-a891-9a0ad34b3910","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":223,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"e15e62a4-f4c3-453c-9311-e34c88139144","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"7c2022a5-ae1a-48f6-8908-301e82296aff","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":223,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"dc22682e-4572-4477-bb51-738a02b3ebbe","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"453def3b-fa57-41b0-bb53-e0bfeb208b41","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":223,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"7bb3d8ce-97df-4965-a73d-a9b3248e53ce","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":223,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"4852c9dc-b1a9-4cb2-9506-46859890510e","block_type":"box","text":"25","page_number":223,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"d2a25241-cf53-4a2f-8098-72cd78bda69c","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":223,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"b8908b25-eb60-4fb0-bef0-7bac804e7903","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":223,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"af49e402-bc37-4b21-8c26-679b5796f332","block_type":"box","text":"RELATED MATTERS","page_number":223,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"42771819-e18c-4a66-9655-5f6ffcd62d04","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":223,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"8ea7c59a-1977-4634-8b8f-126f7ab01672","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":223,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"5b3b5805-3c4c-4cd9-a69a-498e7419438a","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":223,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"ab01c238-f4d9-4b1a-86fb-644bc050f296","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":223,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"71ef34ff-a199-477e-93e8-89ad8c7017fd","block_type":"box","text":"24","page_number":223,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"dfcb2bf6-a628-4f0a-b710-196759ba31f3","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":223,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"da4c0fe6-1c43-4ece-9699-26ee71bcceeb","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":223,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"80f0df5f-ff05-4312-a13d-7cbff70094c5","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":223,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"d4bb6fb4-fd64-4a39-8093-2c92373625ac","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":223,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"80ba6d20-4c91-4e82-b623-b60331f57922","block_type":"box","text":"25","page_number":223,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"6b45a403-c512-46f0-861c-d3a99243e658","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":223,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"cac5a936-b82d-44ce-a646-ed3d9285ccf9","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":223,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"dbabe408-578c-4d60-9295-c1e0388525d5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a04665b4-8643-4c50-acd3-e8c659b0603e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":223,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"05001195-15fa-4144-b640-109077294ee5","block_type":"box","text":"NM0926U-5975843-223/228","page_number":223,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3d649fbe-1cd8-4195-aee0-8a516867e319","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":224,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"c32f3a99-de7b-4a99-a6e2-c6252ecee346","block_type":"box","text":"strategy and risk management.","page_number":224,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"f69f1123-479c-4c42-9b88-831c60b7f0bb","block_type":"box","text":"Auditors and audit-related issues","page_number":224,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"3a9129f4-4043-424f-9462-1d1f64ad7978","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":224,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"9f59537b-11d4-4012-b583-be2427411b49","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":224,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"abf3bf50-3525-4199-b6d1-d006f6132837","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":224,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"79ae98b2-1a18-4bc3-be8c-f8d53e202dd1","block_type":"box","text":"context of its audit report. 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These include a company’s impacts or dependencies on natural capital and key","page_number":224,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"0e46a750-0f43-4fa6-88c8-6680cb4ac0d2","block_type":"box","text":"stakeholders.","page_number":224,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"10837735-dc88-4988-9d53-67feec86122e","block_type":"box","text":"26","page_number":224,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"1dcf4e07-ae87-4d56-bd0f-9f066afef551","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":224,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"ff97cac3-a48b-4b8b-b8d4-6d5352c60833","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":224,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"238e556a-3133-48e5-b123-8634e10759c5","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":225,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"cb3bd5e0-f931-40c6-8d13-d51c73a15c2f","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":225,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"436e06d8-9e71-4c2e-8df2-9efce77e4d8c","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":225,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"d07509b8-678d-4066-9df9-a64a8d479843","block_type":"box","text":"Decarbonization:","page_number":225,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"ce1390a5-d7bf-4a76-b6f3-6f46325d23fb","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":225,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"e5b750e8-189f-4ad8-9c78-4d7af936dff4","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":225,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"501c5c4a-9c51-4b6a-963a-0f1920dc2cb2","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":225,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"d2ab0138-e37e-4575-9567-ca9eeebc379b","block_type":"box","text":"e.g., methane.","page_number":225,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"9880da17-5e1e-40b1-b73c-92f9601b42b9","block_type":"box","text":"Climate-related risks and opportunities:","page_number":225,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"62e08c85-61eb-47de-8e9d-ec68a688e941","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":225,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"3af95f6e-f94e-4068-a1e3-6a6fd5028e34","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":225,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"dd40088c-ae29-4230-9f2b-d18c2f942241","block_type":"box","text":"to physical climate change.","page_number":225,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"268765be-0a22-47a6-b2bd-ee33b7ed889c","block_type":"box","text":"Climate-related transition plan:","page_number":225,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"f03b4508-dbde-4e9d-b7f9-ce59e3ab1c11","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":225,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"330599c9-91f6-4707-ab85-e27459d801c4","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":225,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"660cc4a4-0f6c-4f39-9c5d-8536fd27bbbc","block_type":"box","text":"greenhouse gas emissions.”","page_number":225,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"7e9f95c5-bdb7-4a6b-b7d9-aab5c5c037d8","block_type":"box","text":"27","page_number":225,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"aea1a74f-a5ca-49f6-848d-97748df6578e","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":225,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"627c6990-0544-4650-b01d-a018ed5317c6","block_type":"box","text":"Targets that “","page_number":225,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"4d446f45-6fde-4f4e-bcff-89a5a30ab6cf","block_type":"box","text":"are in line with what the latest climate science","page_number":225,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"6944100a-431e-4edc-ab22-05ad563645f5","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":225,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"ee92c37b-9893-47b0-bf0a-aec1e14519a7","block_type":"box","text":"levels. 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